Frontier Energy II

Equity : March 2018

With more than 750 MW of renewable energy in development, construction and operation, Frontier Energy is a leading investor in the African renewable energy market.

Amount

€ 8,151,000.00

Type of investment

Equity

Development impacts

Local economic growth
Private sector consolidation/innovation
Fight against climate change

Beneficiary locations

Africa: Kenya, Rwanda, Tanzania, Uganda

Investment field

Investment Companies & Funds

Activity

Infrastructure fund

Organisation

Frontier Energy II

Website

https://frontier.dk/

Domicile

Denmark

Frontier Energy II is a private equity investment fund with a focus on developing, constructing and operating renewable energy assets across East Africa. The Fund is a successor fund of DI Frontier Market Energy & Carbon Fund (2011), with similar strategy managed by Frontier Investment Management (the Manager).

The Fund will invest in greenfield and early to late stage development of renewable energy projects assets. The fund manager uses its engineering, financial, renewable energy, ESG and contracting services to create alone (or together with other developers) bankable renewable energy assets.

Development impacts

Local economic growth
The Fund will invest in ca. 12 renewable energy projects with an installed capacity of ca. 459 MW as from development stage and turn them into operational assets. The projects will allow for job creation, tax payments, fees to local governments and the operational assets will help to improve the target countries’ balance of payment by import substitution (fossil fuel) and increases their self-sufficiency.
Private sector consolidation/innovation
As a pioneer in the sector, the fund manager engages itself in wider efforts to improve frameworks for Independent Power Producers (IPP) in East Africa and outside the region.
Fight against climate change
The expected carbon emission savings of Fund II is 1.3m ton CO2 emissions per year, based on an annual production of 2,700 GWh (equivalent to the consumption of 2.2 m households).

Made possible through this investment

Thanks to the direct funding from BIO, the following second-line investments have been made possible.

Bihongora Hydro

Rwanda

Mini hydro infrastructure project in Rwanda.

Bukwo HPP Ltd

Uganda

Hydro infrastructure project in Uganda.

BVC Geothermal Ltd.

Kenya

Geothermal infrastructure project started in 2019 in Kenya. Olsuswa Energy Limited is the company that has been granted the geothermal license. BVC Geothermal Limited, is the project company.

Chania Green Generation

Kenya

Wind infrastructure project in Kenya whose construction started in 2019.

DC Frontier Energy Ltd

Rwanda

Mini hydro infrastructure project in Rwanda whose construction started in 2020.

Eldosol Solar PV Project

Kenya

The Eldosol Solar PV project is a 40 MW project located in the Plateau area, close to Eldoret City in the North-Western part of Kenya. The project will be connected to the Kenyan national grid via a high voltage transmission line passing close to the project site. The project is under construction.

Elemental Energy Ltd.

Uganda

Mini hydro infrastructure project in Uganda whose construction started in 2021 under project name Nyamabuye HPP.

Esikipeto Power Generation Ltd.

Kenya

Wind infrastructure project in Kenya under project name Esilanke Wind Project.

Eventure Africa S.A. Portugal

Mozambique

Wind infrastructure project in Mozambique under project name Inhambane Wind.

Frontier Energy Hydropower

Zambia

3 mini hydro infrastructure projects in Zambia whose construction started in 2021 under project names WECO SHP, MUZI SHP and WEBA SHP.

Great Zimbabwe hydro ZMM

Zimbabwe

Hydro infrastructure project in Zimbabwe.

Greenewus Energy Africa Ltd

Uganda

Mini hydro infrastructure project in Uganda whose construction started in 2018 under the project name Kakaka HPP.

Kiwira Energy Limited

Tanzania

Mini hydro infrastructure project in Tanzania whose construction started in 2020 under project name Kiwira Hydro.

Lungi Power Development PLC

Sierra Leone

Solar PV plant

Momba Hydropower Ltd

Tanzania

Mini hydro infrastructure project in Tanzania.

Momnai Solar Energy Ltd

Kenya

Solar infrastructure project in Kenya.

Monkey Bay Solar Plant Limited

Malawi

Solar PV plant

Mukoki HPP Ltd.

Uganda

Mini hydro infrastructure project in Uganda whose construction started in 2021.

Mzimba Wind Farm Limited

Malawi

Wind infrastructure project in Malawi.

Ndugutu Hydro Power Company Uganda Ltd

Uganda

Mini hydro infrastructure project in Uganda whose construction started in 2017. Operations started in October 2019.

Nithi Hydro Power Ltd.

Kenya

Mini hydro infrastructure project in Kenya whose construction started in 2021.

Olsuswa Energy Ltd.

Kenya

Geothermal infrastructure project started in 2019 in Kenya. Olsuswa Energy Limited is the company that has been granted the geothermal license. BVC Geothermal Limited, is the project company.