Evolution III Fund, Inspired Evolution’s latest next-generation energy transition fund, has concluded a significant minority co-investment in the majority holding consortium of Equator Energy Ltd (Equator Energy), the leading commercial and industrial (C&I) solar provider in East Africa. IBL Energy and STOA closed their first investment in Equator Energy in June 2023.
Evolution III Fund is managed by Inspired Evolution, an Africa-focused climate impact investment manager specializing in clean energy infrastructure, energy access and resource efficiency investments. STOA is the energy and infrastructure impact fund created by Caisse des Dépôts et Consignations (CDC) and Agence Française de Développement (AFD). IBL Energy is a wholly-owned subsidiary of the Mauritian-listed IBL Group based in Port Louis and listed on the Mauritius Stock Exchange.
This partnership brings together seasoned professional teams across Africa with deep clean energy sector experience and proven renewable energy project development experience. The hands-on, active value creation from IBL Energy, STOA, and Inspired Evolution as co-investors is set to accelerate Equator Energy’s C&I strategy in delivering affordable, best-in-class solar energy solutions for corporate and industrial customers across East Africa and other select African jurisdictions.
Equator Energy is the leading vertically integrated C&I developer in East Africa. The company has a growing development pipeline and has set itself an ambitious target to develop, construct, and operate 300 MW of solar projects over the next five years. Affordable clean energy solutions for C&I customers are one of the fast-growing renewable energy sectors, and Equator Energy offers a compelling investment thesis for the consortium investors.
Sebastian Noethlichs, CEO of Equator Energy, said: “We are excited to have Evolution join IBL and STOA as shareholders in Equator Energy. We believe their collective expertise, capabilities, and industry experience will accelerate Equator Energy ‘s growth trajectory to achieve the 300 MW target within 5-6 years. This investment is a testament to their confidence in our team, customers, and markets, and we are excited to have their support as we reach the next milestones”.
Pierre Egot, Managing Director of IBL Energy, said: “Evolution III brings a deep knowledge of the C&I sector in Africa and a good understanding of the Southern African energy markets. With Evolution III at our side, the consortium will be stronger to support Equator Energy’s management team in achieving their ambitious growth targets.”
Marie-Laure Mazaud, CEO of STOA, said: “We are happy to welcome Evolution III in the consortium. Alongside IBL Energy, our initial partner, we trust that our three professional teams have more than the skillset and the financial strength required to help Equator Energy achieve its goal of becoming the leading player in the solar C&I space in Africa. “
Anthony Ngugi, an Investment Director at Inspired Evolution, said: “Equator Energy offers a proven and credible management team to accelerate the deployment of clean energy solutions across select African countries. Equator Energy will contribute to our mission of advancing clean energy infrastructure investment across the continent.”