ARTICLE
12 February 2025

Energy Transition And Infrastructure In Africa

JD
Jones Day

Contributor

Jones Day is a global law firm with more than 2,500 lawyers across five continents. The Firm is distinguished by a singular tradition of client service; the mutual commitment to, and the seamless collaboration of, a true partnership; formidable legal talent across multiple disciplines and jurisdictions; and shared professional values that focus on client needs.
Jones Day lawyers have significant experience in key technological advancements that are transforming the continent's energy landscape. These innovations are not only enhancing the efficiency and sustainability
Worldwide Energy and Natural Resources

As Africa embarks on a transformative journey toward sustainable development, the energy transition and infrastructure sectors are at the forefront of this evolution. The continent is witnessing an unprecedented shift toward renewable energy sources, driven by a combination of abundant natural resources, technological advancements, and supportive regulatory frameworks. This transition is not only pivotal for addressing the pressing challenges of energy security and climate change but also for unlocking new economic opportunities and fostering inclusive growth.

The Jones Day team advises clients on a regular basis in virtually every country in Africa and is very familiar with harmonized law systems across the continent (such as EAC, COMESA, ECCAS, OHADA, WAEMU, ECOWAS, CEMAC, and SADC) as well as national laws. More specifically, the team has in-depth experience of the laws in French-, English-, Arabic-, and Portuguese-speaking countries, and regularly assists clients in both the civil and common law legislative frameworks across the continent.

At Jones Day, we are well-positioned to navigate the complexities of this dynamic landscape. Our deep understanding of the legal, regulatory, and commercial aspects of energy transition and infrastructure projects in Africa enables us to provide strategic counsel and innovative solutions to our clients. Whether it is advising on largescale renewable energy projects, facilitating national and cross-border infrastructure investments, or ensuring compliance with evolving regulatory standards, our lawyers help clients to be well-equipped to capitalize on the burgeoning opportunities in Africa's energy transition and infrastructure sectors.

As a growing number of companies begin to prioritize energy transition, we are seeing an increase in the pool of investors with an interest in the African renewables sector. Where previously represented largely by specialist funds and "green" energy developers, we are increasingly seeing interest from upstream oil and gas companies keen on portfolio diversification, energy off-takers in a range of sectors (from mining to telecoms and retail), as well as private equity firms and investment funds. We anticipate that such cross-sector engagement will lead to strategic growth in projects focused on energy transition. As the possibility of extending the grid to remote populations will not be commercially viable in the short term, we are seeing a push from governments and multilaterals in the promotion of off-grid power generation as an alternative solution to electrification. We anticipate that greenfield off-grid and mini-grid projects will reduce grid-interface risk in project development, and are likely to be an attractive option to new entrants and smaller developers.

Jones Day lawyers have significant experience in key technological advancements that are transforming the continent's energy landscape. These innovations are not only enhancing the efficiency and sustainability of energy production but also making it more accessible to a broader population. Across Africa, Jones Day lawyers have participated in solar photovoltaic, wind energy, hydropower, geothermal energy, energy-efficiency technologies, bioenergy, and waste-to-energy projects. These technological advancements are playing a crucial role in Africa's energy transition, helping to create a more sustainable, reliable, and inclusive energy future for the continent.

  • Advised the management team of Lekela Power in connection with Africa's biggest renewable energy deal. Lekela is Africa's largest pure-play renewable energy independent power producer. It is being sold by Actis, a leading global investor in sustainable infrastructure, and Mainstream Renewable Power, a global wind and solar company, to Infinity Global Energy, a joint venture between Infinity Worldwide Investments and Africa Finance Corporation.
  • Advised the Emerging Africa & Asia Infrastructure Fund and the Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden N.V. ("FMO"), acting as co-mandated lead arrangers, alongside Deutsche Investitions- und Entwicklungsgesellschaft mbH. The overall investment is more than €105million, of which €84million is external debt. Scheduled for completion in 2026, the Kolda solar power plant marks a milestone in the development of renewable energies in Senegal. It is the first solar project in the Casamance region and the largest photovoltaic project in West Africa to incorporate a battery energy storage system.
  • Advising TotalEnergies on the sale of its interest in a Nigerian gas JV that holds 18licenses in the Niger Delta.

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