MADAGASCAR – French developer GreenYellow has reached an agreement to divest its stakes in solar PV and hybrid power plants in Madagascar and Burkina Faso to Antananarivo-based conglomerate Axian Group.

The financial terms of the acquisitions were not disclosed but are in line with Axian’s strategic initiative to bolster its presence in Africa’s renewable energy market.

This move also aligns with Axian’s ambitious target of deploying 500 MW of renewable energy capacity across Africa within the next three years, as stated by the group recently.

In this transaction, GreenYellow is transferring its shares (49%) to its partner, thus rendering the latter the sole shareholder of the GES project portfolio in Madagascar.

The portfolio encompasses the Ambatolampy power plant, boasting a capacity of 40MW along with an integrated 5MWh battery storage system, as well as four hybrid power plants situated in the Sava and Menabe regions, collectively amounting to approximately 6MW of capacity.

The project provides improved electricity access to around 285,000 people supporting SDG 7 and reduce emissions by 34,000 tonnes of CO2 through the displacement of thermal powr supporting SDG 13.

Meanwhile, in Burkina Faso, Axian is acquiring 95% of the shares of the Nagréongo power plant, which commenced operations in 2022 with a solar capacity of 30 MW.

The project was developed under a public-private partnership (PPP) with the Burkinabe government and intends to supply all electricity produced to the national company Sonabel. Through this acquisition, Axian is expanding its operating portfolio within the energy division.

In a press release, the Malagasy group elucidated that it has been venturing into the renewable energy sector since 2017, initially focusing on gas and oil.

Axian recently secured financing of 30 million euros in debt to diversify into solar energy in Africa, with a goal of developing 500MW of renewable energy capacity across the continent in the next three years.

On the other hand, GreenYellow emphasized its ongoing strategy to rebalance its geographical exposure and expedite its growth in Europe.

The group, acquired by the Ardian investment fund in 2022, announced at the end of December 2023 the acquisition of three portfolios of operating assets in mainland France, Reunion Island, and Mayotte.

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