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 and preservation of natural resources

Beneficiary locations

Sub-Saharan Africa: Kenya, Rwanda, Tanzania, Uganda

Investment field

Investment Companies & Funds

Activity

Infrastructure fund

Organisation

Frontier Energy II

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 and preservation of natural resources

    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.

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.

Ndugutu Mini Hydro Power Project

Uganda

The Ndugutu project is a 5.9 MW run-of-river hydro power plant utilizing the hydro power potential of the river Ndugutu as it drops 465m in a series of rapids, near the town of Bundibuggyo in the foothills of the Rwenzori mountains in Western Uganda. The project will be connected to the national grid. The project is under construction.

Nithi Hydro Power Project

Kenya

Nithi project is a 5.0 MW run-of-river hydro power plant utilizing the hydro power potential of the river Nithi as it drops 250m in a series of rapids near Chuka on the eastern slopes of Mt. Kenya in Kenya. The project will be connected to the national grid. The project is in late stage development.

Nyamagasani 1 Hydro Power Project

Uganda

The Nyamagasani 1 project is a 15.0 MW run-of-river hydro power plant utilizing the hydro power potential of the river Nyamagasani as it drops 330m in a series of rapids, near the village of Kyarumba in the foothills of the Rwenzori mountains in Western Uganda. The project will be connected to the Ugandan national grid. The project is under construction.

Radiant Solar PV Project

Kenya

The Radiant 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.

Kakaka Hydro Power Project

Uganda

The Kakaka project is a 4.5 MW run-of-river hydro power plant utilizing the hydro power potential of the river Ruimi as it drops 180m in a series of rapids, in and around the village of Nyakaka in the foothills of the Rwenzori mountains in Western Uganda. The project will be connected to the Ugandan national grid. The project is under construction.

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Ethos Mezzanine Partners 3

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Enterprises

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Financial Institutions

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  145,000.00

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  1,500,000.00

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  274,000.00

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Financial Institutions

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  100,000.00

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  13,700.00

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  Subsidy