Mainstream in biggest-ever African renewables deal with $1.5bn wind sale to Infinity

Developer Mainstream Renewable Power and partner Actis, a sustainable infrastructure investment house, have sold their 1GW African wind wind portfolio to a joint venture between Egypt’s Infinity and UAE’s Masdar in the continent’s biggest-ever sector deal.

The Lekela platform, which had five operational project in South Africa totalling 624MW, one in Egypt (252MW) and one in Senegal (159MW) as well as development targets in Ghana, Senegal and Egypt, was acquired for $1.5bn.

The transaction will generate net proceeds to Mainstream of $90m, “subject to certain closing adjustments”, from Lekela, which was established in 2015 and grew to become Africa’s largest pure-play renewable energy IPP.

“The planned exit reflects the successful culmination of Mainstream and Actis’ partnership strategy for Lekela, following a comprehensive value-creation approach establishing Lekela as global sustainability leader,” said the pair in a statement.

Mainstream CEO Mary Quaney said: “I am confident that Lekela will continue to make a major contribution to a just, and therefore sustainable, energy transition [in Africa].

“[We are] deeply committed to our mission of leading the global transition to renewable energy and our 150-strong proudly South African team is focused on bringing our 11.5GW pipeline of wind and solar projects to fruition this decade and beyond.”