Independent renewable energy company Qair has secured a USD 5.7 million senior debt facility from the Facility for Energy Inclusion ('FEI'), managed by Cygnum Capital, to finance the development, building, operations, and maintenance of a 5.8 MWp Floating Solar plant located in the Providence Lagoon on Mahé Island in Seychelles.
Listed as a key project in Seychelles’ national renewable energy roadmap, the Seysun Lagoon Floating PV plant is backed by a 25-year Power Purchase Agreement (PPA) with the Public Utilities Corporation. Qair secured the project through a government tender and will develop the project alongside its local renewable energy partner, Vetiver Tech.
Once operational, the plant will play a critical role in advancing Seychelles’ energy diversification efforts, reducing reliance on imported fossil fuels and helping to stabilize electricity costs. It represents a significant step toward achieving the national target of sourcing 15% of energy from renewables by 2030, as outlined in the country’s Nationally Determined Contributions (NDC). As a floating solar PV project, it also offers an innovative solution to the land constraints faced by island nations like Seychelles, unlocking clean energy generation without competing for limited onshore space.
'This investment underscores FEI’s commitment to supporting innovative clean energy solutions across Africa’s island nations. As the first IPP utility-scale project in Seychelles and one of the largest floating solar PV projects in Africa, it represents a significant milestone for the region. We are proud to support Qair in bringing this landmark project to fruition, helping drive progress toward Seychelles’ renewable energy targets' said Carmen de Castro, Managing Director and Fund Lead at Cygnum Capital.
'This financing from the Facility for Energy Inclusion is a major milestone for Qair in Seychelles. The Seysun Lagoon Floating PV plant will be the country’s first of its kind, and we sincerely thank the FEI for their trust and support, which will enable us to deliver clean, reliable power to Mahé while supporting Seychelles’ ambitious sustainability goals' said Olivier Gaering, Indian Ocean Regional Director at Qair. 'Coming just weeks after securing financing for a hybrid solar and storage project in Mauritius, it reinforces our momentum and puts us firmly on course to accelerate clean energy deployment across the Indian Ocean and Africa.'
About Qair in Africa
With more than 15 years presence on the continent, and teams established across North, Central and West Africa as well as the Indian Ocean, Qair operates 65 MW of installed capacity in Africa and develops a robust pipeline of over 2 GW spanning solar, wind, and hybrid technologies to address the specific challenges of each region.
By combining technical innovation with deep local engagement, Qair aims to deliver clean, affordable, and reliable electricity while fostering local employment, training, and sustainable economic growth across the continent.
More information on Africa.qair.energy
About Cygnum Capital
Cygnum Capital Group is an investment bank and asset manager, operating across frontier and emerging markets. Cygnum Capital Asset Management manages or advises six pioneering funds: five debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), a ground-breaking investment vehicle established to support local currency capital markets, (ii) the Off-Grid Energy Access Fund (“OGEF”) which supports companies in off-grid energy such as SHS and small- medium mini-grids, (iii) FEI which support companies that provide a range of renewable energy solutions such as medium-large mini- grids, C&I and IPP with a maximum capacity of 25 MW, (iv) the AfricaGoGreen Fund (“AGG”) which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency and promote economic development in high impact target sectors, (v) Africa Agriculture Trade Investment Fund (“AATIF”) which is dedicated to uplift Africa’s agricultural potential through improving food security and providing additional employment and income to farmers, entrepreneurs and labourers by investing in efficient local value chains; and a VC private equity fund and (vi) E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & applications, low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 1.1 billion in assets under management with investments in 37 African countries.
For more details, please visit: www.cygnumcapital.com
About the Facility for Energy Inclusion
FEI is designed to support small-scale independent power producers delivering power to the grid, mini-grids, commercial and industrial, and captive power projects. FEI was set up by the African Development Bank (“AfDB”) as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI received equity funding from the German Federal Ministry for Economic Cooperation and Development through KfW and Norfund and loan commitments from the Austrian Development Bank (“OeEB”), the International Finance Corporation (“IFC”), and DEG. The AfDB also invested on behalf of the Clean Technology Fund and the European Commission.
The transaction was supported by FEI’s Project Preparation Facility (“PPF”), funded by the Global Environment Facility, through the AfDB. The PPF provides returnable grant funding for last-mile processes crucial to closing transactions and to fund due diligence and preparatory costs incurred in establishing innovative structures or transactions that FEI seeks to lend to.
For more details, please visit: www.feiafrica.com
FEI was advised by Ashurst (legal), IBIS Environmental Social Consulting Europe (E&S), Willis Limited (insurance), PwC Mauritius (tax) and Afry Switzerland Limited (technical) on this transaction.
Source: Qair
