(Bloomberg) --
Enel SpA has signed a joint venture agreement with Qatar Investment Authority, the Middle East nation’s sovereign wealth fund, to own and develop renewable energy projects in Africa.
Enel Green Power, a unit of the Italian utility, will partner with QIA, which will acquire a 50% stake in about 800 megawatts of projects built and under construction in South Africa and Zambia and add more plants across the continent, the companies said in a statement Thursday.
The Italian company, with plans to increase its renewable capacity to 60% by 2022, said last year that it was searching for a partner in Africa.
Read: Abu Dhabi Wealth Fund Targets Africa, Renewables to Lift Returns
QIA will acquire half of the Enel unit’s stake in four projects under construction in South Africa, and two further plants in operation in the same country as well as in Zambia, subject to approvals. The joint venture will be in charge of financing and building new renewable projects.
Enel Green Power said it will retain ownership of more than 500 megawatts of capacity in wind and solar projects in South Africa.