Clean Energy | October 11, 2023

Adenia takes a majority stake in South African solar provider Enfin

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, October 11 – By the end of this year, South Africans will have faced 250 days of rolling blackouts in 2023. The country’s ongoing power crisis will have cost the economy $13 billion.

Enfin finances, develops and operates on-site solar power for businesses, farms and schools. It wants to expand its solar project portfolio from just over 2.5 megawatts today to more than 100 megawatts in the next five years.

Africa-focused private equity firm Adenia Partners took a majority stake in Enfin as the first investment from its fifth fund.

Energy crisis

South Africa’s 59 million people depend on coal for more than 75% of their power – and face up to 10 hours of rolling-blackouts daily.

At COP26 in Glasgow two years ago, South Africa became the first country to ink a Just Energy Transition Partnership plan to accelerate the country’s shift away from coal. South Africa secured $8.5 billion in commitments from US, UK, EU and European countries to pay coal plant owners to shut down. The country estimates that it needs nearly $100 billion to achieve its JETP goals. Progress on the JETP has stalled.

ESG boost

Adenia takes controlling stakes in mature African countries, and then seeks to improve environmental, social and governance strategies as well as growth. Its “theory of change” is based on improvements in job quality, diversity and sustainable business operations.

The firm is looking to raise $400 million for its fifth fund, which has backing from development finance institutions, including the IFC, DFC, and European Investment Bank.