Actis to Acquire Major Stake in Renewables Platform Yellow Door Energy
Actis, a leading investor in sustainable infrastructure, has signed definitive transaction documents for the acquisition of a controlling stake in Yellow Door Energy Limited.
Yellow Door Energy is the leading distributed Commercial & Industrial (“C&I”) solar platform in the Middle East and Africa (“MEA”) region with around 200MW of secured production capacity. Closing of the transaction remains subject to obtaining the relevant regulatory approvals.
In all its target markets, YDE can offer customers a power supply that is more economical and sustainable than the grid. Demonstrating 10-50% power cost savings for customers, the company is positioned in the fast-growing C&I segment, in key MEA markets.
YDE has one of few operating C&I portfolios of scale in the region with 106MW in operation and 104MW awarded and under construction.
The company has key existing relationships with a large customer base of over 50 companies, including sought after blue-chip businesses such as Nestlé, Majid Al Futtaim, DHL, Mondelēz and Unilever.
Energy supply in the Middle East is heavily dependent on fossil fuels (>90%). Renewable technology deployment is a key enabler for businesses to achieve low carbon transition strategies, and with this latest investment Actis continues its mission to advance a low carbon transition.
The transaction will be funded through Actis’ Energy 5 Fund, Actis’ latest energy fund with $6 billion of investable capital to accelerate the Energy Transition globally.
Actis will apply its successful buy-and-build power strategy to scale the business and accelerate growth. The team has invested in over 70 renewable energy projects to date, generating approximately 11GW of renewable energy globally.
Lucy Heintz, Partner and Head of Energy Infrastructure at Actis, commented: “We’re delighted to be contributing to the Middle East and Africa region’s transition away from fossil fuels by deploying new Solar PV technology, presenting an exciting opportunity to scale the business."
Shami Nissan, Partner and Head of Sustainability at Actis, added: "Actis is a signatory to the Net Zero Asset Managers Initiative which supports the goal of Net Zero emissions by 2050 and we recently announced our own portfolio-wide 2050 Net Zero target.”
Jeremy Crane, Founder and CEO of Yellow Door Energy, said: "This investment from Actis, complemented by increased investments from our current shareholders, Mitsui & Co., Ltd., APICORP, and IFC, is an attestation to the success of our company.
"I look forward to continuing our mission to provide clean, affordable, and reliable energy to businesses in the MEA region."