Engie targets home solar acquisition in Africa
Reuters reported that French gas utility Engie has bought a Ugandan home solar systems company to expand in sub-Saharan Africa by providing power to millions of people who have no access to electricity. Engie said that it had acquired Fenix International, which sells home solar kits financed through tiny regular payments by mobile phone. It declined to disclose the cost of the deal.
Though, Engie has 3,000 megawatts of renewable energy and gas-fired power assets in operation or under construction in Morocco and South Africa, and its Tractebel business sells energy services across Africa, the group has no retail customers in the region.
Mr Bruno Bensasson, Engie Africa Chief Executive said Engie will help Fenix to expand in about 10 Sub-Saharan countries, including Zambia, Kenya, Ivory Coast, Senegal and Ethiopia. He said that "Our ambition is to cover millions of clients."
The acquisition is tiny for Engie, which had revenue of EUR 66.6 billion last year, but Bensassson said the company expects double-digit growth from the new activity.
Average revenue per user from the solar kits will be similar to that of the African telecoms industry.
Fenix CEO Lyndsay Handler said its systems cost $175-$800. It has sold them to more than 140,000 Ugandan households in the past three years, bringing power to about 900,000 people.
The International Energy Agency says that about 600 million people in sub-Saharan Africa have no acces to electricity.
Handler said there are many solar panel vendors in Africa, but most people are unable to buy the equipment outright.
People in regions without electricity spend 10-50 U.S. cents on energy per day, whether on candles, kerosene or wood, she siad. Fenix has structured its financing around that level.
Meanwhile, customers pay an USD 8 deposit to take home a basic solar system and are given seven days of free use, after which they must make their regular payments to unlock the sytem with a code sent by SMS.
Source : Reuters