Fortis Green Renewables, a renewable energy investment firm investing out of its Green Fund I, has acquired a “significant minority stake” of 40% in Rwaza Hydropower Ltd., a 2.6 MW operational run-of-river hydropower plant in Musanze, Rwanda.
Fortis Green Renewables and the seller group signed a share purchase agreement in November 2023, which initiated the acquisition.
The investment represents a significant step in the development of Green Fund I, according to a release, as it provides access for investors to a stable and steady operational asset in the attractive Rwandan market.
Rwaza (or Rwaza 1) began operations in early 2019 and has provided reliable power to the Rwandan grid via a 25-year power purchase agreement with the Rwanda Energy Group (REG). The project was developed by DC Hydropower Ltd., responsAbility Renewable Energy Holding (now known as Serengeti Energy), and Frontier Energy. Frontier sold its position to Serengeti Energy March 2023. Fortis Green Renewables’ investment in Rwaza was completed via a full acquisition of DC Hydropower Ltd.
“We have been tracking Rwaza for a number of years and are pleased to add it to our Green Fund I portfolio. Fortis Green Renewables is committed to the development and operation of clean and renewable energy for the African continent and Rwaza fits perfectly into this vision”, says Jonathan Shafer, managing director of Fortis Green Renewables Investment Management.
