Lux Nova Partners are advising GridX Africa Development, a renewables private power developer, on their investment raise and alliance with Aim-listed Ncondezi Energy as selected lead investor. Investment financing from both parties and potentially other third parties will enable GridX to develop out its initial portfolio of 15 mini-grid projects (over $20million in capex terms) that will deploy small-medium sized solar and battery storage solutions to serve commercial and industrial businesses across the African continent.
Projects include those like the smaller solar mini-grid servicing the Singita Faru Faru Lodge in the Serengeti National Park in northern Tanzania, with the integration of around 200kWp solar with 522kWh battery systems, replacing an average of 100,000 litres of diesel each year.
GridX has identified significant market demand for cost effective and reliable power in the African commercial and industrial sectors, and solar and battery storage increasingly makes economic sense against traditional power generation such as diesel generators. Developers with design, finance and operate solutions like GridX are positioned to help expand the sector as demand continues to grow.
The partnership between Ncondezi and GridX complements Ncondezi’s existing presence in the Africa region and its desire to diversify its portfolio to focus on construction-ready captive solar and battery solutions in Africa.
“Falling solar panel and battery costs are setting the foundation for a tide of disruptive technology in the African energy markets, allowing African countries to leapfrog to the next generation of sustainable energy supply.
“At the same time, significant investment appetite is growing in the sector as investors increasingly recognise smaller renewable captive generation projects as a source of steady returns,” Ncondezi nonexecutive chairperson Michael Haworth says.
To hear more about the projects, click here for an interview with GridX’s Hanno Pengilly.