New Sparta Energy's strategy is designed to unlock the continent’s enormous clean power generation potential, help combat climate change, and offer de-risked, sustainable operating assets to exit markets – all while improving the lives of Africans by increasing their access to electricity and providing attractive employment opportunities. To satisfy these objectives, an experienced investment team is critical, and NSE professionals have a demonstrated record of success in the origination, development, financing and construction of power projects in emerging markets – but most importantly across the African continent.
With this in mind, our strategy is grounded on:
- Africa’s significant demand for new power generating capacity and favourable renewable energy resources
- The current and growing market demand for bankable, de-risked African operating projects
- Experience-based selection of project opportunities with the highest probability of timely, profitable exits
- Management of these investments with a disciplined focus on budget, schedule, and risk assessment
- Maximising exit proceeds through a focus on relative value and a robust, competitive exit process
NSE’s preferred generation technologies include solar, wind, small hydro, biomass, and geothermal. We will seek to secure long term power purchase agreements with both institutional and captive power purchasers, and also consider off-grid investment opportunities, in partnership with experienced sector participants, where profitability and scalability are achievable. Within these parameters, NSE will take an opportunist approach, pursuing projects with clear visibility to both financial close and commercial operation, acceptable technology risks, and favourable profitability and exit prospects.
Without exception, NSE will employ rigorous risk controls to help ensure timely and on budget project completion. This control environment will employ documented processes designed to carefully select projects and manage their execution by experienced, on the ground development professionals, operating under the guidance of NSE senior management. They will feature regular project reviews against budget and schedule, informed by real-time assessments of each investment’s unique risk profile.
Projects will be assessed based on their relative value, focusing on the optimal entrance and exit timings such that returns will, on a risk-adjusted basis, be optimised for each investment. Normally, this will be achieved through entrance into early stage development projects, and exit post commercial operation. However, we will not preclude alternative investment timelines, depending upon market valuations and the potential to leverage the NSE team’s core skillset.