Independent power producer Lekela will invest USD 2 bn in Egypt over the next four years, the company’s CEO Chris Antonopoulous told Bloomberg Asharq on the sidelines of COP27. This is part of the company’s USD 6 bn plan to quadruple its energy production capacity in Africa — with a focus on wind — to 4 GW by 2026. In Egypt, the company is looking to build wind farms west of the Nile as the Red Sea becomes saturated, he said.

Where else is the money going? Another USD 2 bn are earmarked for South Africa, while the rest will go to other African markets, he added.

And where will it come from? The company generally looks to finance some 25-40% of its projects through the sale of ownership stakes, he told Bloomberg, with the remainder coming from banks and long-term multilateral lenders like the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC).

Lekela’s new owners will increase its focus on the Middle East (and Egypt): The company was acquired by Egyptian renewables provider Infinity and Africa Finance Corporation last summer, making Infinity the continent’s largest renewables player. The acquisition is expected to close in January, Infinity co-founder and chairman Mohamed Mansour told Bloomberg. “With the acquisition, we will transform into a Middle Eastern company,” Antonopoulous added. The company currently does not have any projects in the Middle East, besides its 252 MW West Bakr wind farm in Egypt, according to its website.

And will widen its targeted sector pool: “We look forward to entering new sectors such as green water desalination and green hydrogen production, hopefully in partnership with the Sovereign Fund of Egypt,” Antonopoulos explained.