KGAL New Frontiers, set up last year to invest in new areas of infrastructure, has acquired a stake in a provider of solar power infrastructure in emerging markets.
The subsidiary of German real assets fund manager KGAL has bought a 22% share in SunErgy, a Norwegian company that supplies off-grid electricity, cable television and internet access to towns.
SunEnergy ships small solar power plants in containers from Northern Europe to emerging markets, where they can be connected to homes using the company’s own network.
KGAL New Frontiers is designed to open up new areas of investment, which once tested could be offered to institutional investors.
The investment in SunEnergy is intended to finance the company’s further growth.
The goal is for SunErgy to become one of the leading providers of off-grid power supply within eight years, during which time it plans to primarily be active in Cameroon, with an outlook to further expand into West Africa. Eight solar power plants are set to be commissioned this year.