China Three Gorges South Asia Investment Ltd (CSAIL), in a consortium with other investors, has acquired Dubai-based wind and solar developer Alcazar Energy Partners (AEP), allowing the Asian country to enter the Middle East and North African (MENA) region’s renewable energy sector.
AEP’s investors include Mubadala Infrastructure Partners, BluStone Management and DASH Ventures, International Finance Corporation (IFC), a member of the World Bank Group, and IFC’s Catalyst Funds, and AEP’s management team. It has created a portfolio of five solar and two wind projects in Egypt and Jordan, with a total operational capacity of 411 MW.
The companies didn’t disclose a value for the deal, but recent media reports show that it could be about $500 million.
Daniel Calderon Co-founder & CEO Alcazar Energy
“We are proud of what we have achieved with the support of our investors, lenders and local governments over the past six years. Our plants have helped develop the renewable energy industry in Jordan and Egypt, powering 275,000 households and saving over 15.6 million tons of carbon dioxide, while also making a strong contribution to economic growth and employment, particularly within the local communities.”
AEP is a significant independent developer and power producer with regional operations in Jordan and Egypt. It is based in the Dubai International Financial Centre (DIFC). The company has raised over $700 million in debt and equity since its creation in 2014.
China Three Gorges of South Asia Investment was founded in 2011 by China Three Gorges Corporation and China Three Gorges International Corporation with the goal of acquiring, developing, building, owning, and operating renewable energy-producing projects, especially in Asia. IFC and Silk Road Fund are among CSAIL’s other shareholders.
The UAE, Saudi Arabia, Jordan, Egypt, Morocco and Oman have developed various solar projects and are home to some of the world’s biggest initiatives. In the Al Dhafra district of Abu Dhabi, the world’s largest solar power facility is located.
According to Alcazar, the renewable energy sector will gain 157 gigawatts of capacity and $175 billion in investment over the next ten years. Solar energy can be used more widely to help countries with power shortages and outages generate electricity.
