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AfrElec: British International Investment, Norfund, Scatec to invest $200mn in African hydro

British International Investment (BII) has said it will invest up to $200mn into a joint venture between its Norwegian counterpart Norfund and the renewable power producer Scatec ASA to provide capital for that company’s hydropower projects in Africa. 

BII and Norfund hold a 49% stake in Scatec’s hydropower portfolio, which includes a mixture of operating assets and assets under development, including Ruzizi III, a proposed 205-MW hydropower plant (HPP) that will provide electricity to Rwanda, Burundi and the Democratic Republic of Congo.

The 120-MW Volobe HPP in Madagascar and 350-MW Mpatamanga project in Malawi also feature in the joint venture's plans.

BII said that assets under development are aligned with the Paris agreement to support respective countries in their net-zero pathways. It estimates that in 10 years clean power provided by new assets can create 180,000 jobs, avoid at least 270,000 tonnes per year (tpy) of carbon dioxide equivalent greenhouse gas (GHG) emissions and meet the demands of over 3mn people.