NEoT and Odyssey partner to drive more capital to renewable energy assets in Sub Saharan African
We are pleased to announce a partnership with NEoT Capital, a long-term financier of energy transition assets, with a dedicated focus on off-grid clean energy and electric mobility solutions.
This partnership strengthens both Odyssey’s and NEoT’s commitment to reversing the climate change course we are on and seeing that all people, no matter where they live, have access to the energy they need to thrive.
As the system of record for distributed renewable energy projects, Odyssey will support NEoT in its mission to deploy capital into portfolios of assets in Sub-Saharan Africa. Through Odyssey, NEoT will be equipped with tools to aggregate projects, perform project- and portfolio-level due diligence, and monitor assets via customized analytics dashboards.
“Odyssey is contributing to the digitalization of the DRE market – a critical evolution for financiers and asset managers like NEoT: the data-enabled environment Odyssey is building helps us to deploy our capital more efficiently and faster, while playing a key role facilitating bankable opportunities between financiers and developers. We are excited to deepen our partnership with Odyssey at different stages of our investments, from deal origination and transactions process to asset monitoring and optimization.” –Idris Tayebi, Director Offgrid Africa, NEoT Capital
This partnership is a perfect example of aligned parties cooperating to address the significant market gap of construction-stage private capital, highlighting Odyssey’s capacity to support full financing solutions.
“NEoT Capital unlocks a critical barrier to scale-up project deployment of distributed renewable energy by providing long-term development and construction project equity. At Odyssey, we are pleased to facilitate this much needed form of capital in the sector and are actively supporting NEoT in fulfilling its investment mandate on live transactions through our end-to-end suite of financing tools.” – Jay Lurie, Head of Investments, Odyssey Energy Solutions
NEoT is a pioneer in mobilizing private capital for distributed renewable energy projects. Since their founding in 2017, NEoT’s investments have resulted in over 2,800 zero-emission assets and 44,000 homes and businesses gaining access to electricity. The opportunity for private capital investments into distributed renewable energy projects in emerging markets is enormous. Consider the following statistics:
- Big growth in C&I projects: Across Africa, C&I projects saw a 61.5% y-o-y growth in 2022. Recent announcements of multiple large ticket financing deals for C&I projects bodes that this trend will continue (1).
- Increases in private investment: In 2020, 78% of sub-Saharan Africa’s debt was concessional, from bilateral (47%) or multilateral (31%) sources; in 2022, only 25% is multilateral concessional and 20% bilateral, with private creditors accounting for 56% of the total (1).
- Capital needed to meet climate goals is large: Supporting investment and channeling recovery funds into climate-smart business represents a $10.2 trillion investment opportunity for both the public and private sectors (2).
Interested in learning more about the partnership and financing of distributed renewable energy? Don’t hesitate to get in touch.
1 Africa Energy Outlook 2022: IEA
2 A Green Reboot for emerging markets