China's Three Gorges completes acquisition of Alcazar Energy

China Three Gorges South Asia Investment (CSAIL), in consortium with other Chinese investors, has completed the 100% acquisition of Alcazar Energy Partners, one of the largest independent renewable energy companies in the Middle East and North Africa.

A statement by Alcazar confirmed the acquisition and highlighted that the transaction would give CSAIL the opportunity to extend its business and gain exposure to the renewable energy markets in the MENA region.

Established six years ago, the Dubai-headquartered Alcazar Energy Partners has built a portfolio of five solar and two wind projects in Egypt and Jordan, with a total operational capacity of 411MW. The company’s proven track record of project development, contracting, and operational capabilities has seen it play a leading role in the development of the renewable energy industry in both countries.

Daniel Calderon, Co-Founder and Chief Executive Officer of Alcazar Energy Partners, commented: “We are proud of what we have achieved at Alcazar Energy Partners with the support of our investors, lenders and local governments over the past six years. In this short period of time, we have built the MENA region’s leading developer and producer of renewable energy.

“Our plants have helped develop the renewable energy industry in Jordan and Egypt powering 275,000 households and saving over 15.6 million tons of CO2 whilst also making a strong contribution to economic growth and employment, particularly within the local communities. I am certain that CSAIL will continue to serve our customers in Jordan and Egypt according to the highest industry standards and accelerate the company’s growth journey in the region.”

Driven by investor demand, the MENA region’s renewable energy sector is exposed to strong structural growth trends, with 157GW of renewable energy capacity and additional USD$175 billion expected to be invested in the next ten years, he added.

Alcazar Energy Partners’ investors include institutions such as BluStone Management and DASH Ventures, IFC, a member of the World Bank Group, and IFC’s Catalyst Funds, Mubadala Infrastructure Partners and Alcazar Energy Partners’ own management team.

The company’s established regional footprint, leading technology and operational excellence, will provide a solid foundation for CSAIL’s future expansion in the region and this transaction will enable significant growth through access to new markets and business opportunities across the wider MENA region, the statement said.

The financial advisors to CSAIL on this transaction were Natixis and its affiliates Vermilion Partners and EFG Hermes. Allen & Overy LLP provided legal counsel. Standard Chartered acted as the exclusive financial advisor to Alcazar Energy Partners, while Freshfields Bruckhaus Deringer LLP and Bracewell provided legal counsel.