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

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 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).