While focusing on integrating the assets it bought from Actis rather than seeking more acquisitions, Engie is looking to develop a pipeline of 7GW of projects, said Mohamed Hoosen, the company's MD for Asia, Middle East and Africa. It may also invest in transmission projects in South Africa, once those are opened up for private participation, he said.
The company's acquisition of BTE Renewables from Actis, which it bought with Meridiam, comes as large renewables companies look to bolster their position on the continent. The industry is also attracting new entrants.
A unit of Old Mutual is in talks with companies including BlackRock to sell a stake in one of the continent's biggest renewable energy businesses, Bloomberg reported in June. Africa Finance Corp and Egypt's Infinity Group acquired Lekela Power in 2022 and Copenhagen Infrastructure Partners secured control of South Africa's Mulilo Energy Holdings last year. Mainstream Renewable Power is looking for an investor in its African projects and Red Rocket may sell its business.
"It's inevitable that there's going to be consolidation in the renewable space," Hoosen said in an interview. "Renewables is a scale business the bigger you are, the more you are developing, the more purchasing power you have in acquiring panels or wind turbines, you are better positioned to be competitive."
The company already has about 3.7GW of generating capacity operational across the continent and more than 1GW in the process of being developed, a graphic on its website shows.
