Ignite Power to bring electricity to underserved regions. Image Credits: Ignite Power
Abu Dhabi-based distributed renewable energy (DRE), has set its plans to acquire 100 per cent of ENGIE Energy Access (EEA) from French prominent utility firm. This deal is bound to give birth to the largest DRE company in Africa, to be dubbed Ignite Energy Access. The fruit of the merger is a company that aims to deliver solar power to more than 15 million people across 14 African countries.
Ignite Power was founded in 2014 by Yariv Cohen, who pursues the mission of providing solar-powered life-enhancing solutions to some of the continent’s most underserved communities. It focuses on regions at the bottom of the pyramid whose residents are smallholder farmers and their families who lack reliable access to electricity.
This acquisition represents an expansion of Ignite Power’s footprint, an expansion in its reach across Africa. ENGIE Energy Access marks Ignite’s fourth acquisition in the last couple of years, establishing its status as a powerhouse in the African energy access sector. The company seeks to connect 100 million people to electricity by 2030.
CEO of Ignite Power, Yariv Cohen, says that acquisition is a transformative milestone for both the company and the African energy sector. “ENGIE Energy Access has built an exceptional legacy. By integrating their strengths with our own proven model, we will be creating a full-spectrum energy access company that can scale to meet the continent’s immense energy needs.” Mr. Cohen said.
The nascent company that was borne out of the acquisition will combine EEA’s established on-the-ground presence with Ignite’s scalable business model. With both companies sharing a mission of increasing access to sustainable energy, Ignite Power exploits falling costs of solar panels and batteries, along with increasing adoption of mobile payment systems, to provide affordable and reliable power to homes, businesses, farms, schools and other institutions.
This transaction grows Ignite Power’s total addressable market to more than 250 million people. The company will leverage economies of scale, enhanced digital operations, and its existing business model. Ignite’s proprietary platforms for mobile payments, fleet management and data analytics are intended to improve efficiency and portfolio performance.
The deal follows Ignite’s recent $15 million investment from Afrigreen for commercial and industrial (C&I) solar projects, which the company says demonstrates investor confidence. The acquisition comes at a time of increasing investment in renewable energy projects across Africa, as governments and businesses seek to address the continent’s energy deficit and promote sustainable development.
