Investment will lead to a significant reduction in CO2 emissions, while providing more reliable and affordable power and creating local jobs and opportunities
TORONTO, Dec. 18, 2019 /CNW/ - FinDev Canada announced today a USD 20 million equity investment in Canadian-based JCM Power to support renewable energy projects in Sub Saharan Africa, Latin America and the Caribbean. JCM Power plans to develop 10-12 utility-scale renewable projects focusing on solar and wind energy and 1-2 HVDC transmission projects over the next 5 years
"Promoting Canadian expertise in renewable energy in emerging markets is a priority for us," explains Paul Lamontagne, FinDev Canada's Managing Director. "We are pleased to be supporting the expansion of a Canadian renewable energy company focused on the development, acquisition, construction and operation of utility scale renewable energy projects in developing markets ."
For a decade, JCM Power has been advancing the clean energy age by investing in the greenfield development and construction of clean energy projects that are financially, publicly, socially and environmentally sustainable in countries such as Honduras, Haiti, Kenya and Malawi. Benefitting from rigorous corporate and socially responsible frameworks and a commitment to ethical due diligence, it has become a world leader in sustainable energy.
Becoming a significant shareholder in one of Canada's leading renewable energy companies focused on developing markets is consistent with FinDev Canada's investment strategy. Facilitating the shift by electrical utilities from fossil-fuel based electricity to renewable energy sources is a key element of its Green Growth sectoral objectives.
"We are very excited to be working with JCM Power as a leader in sustainable clean energy projects and as a Canadian firm." said Suzanne Gaboury, Chief Investment Officer at FinDev Canada, "We are committed to contributing to JCM Power's continued growth and helping it attract additional investors, including other Canadian institutions."
The investment by FinDev Canada forms part of a USD 116 million equity offering that also includes other Canadian and international DFIs and investors.
"JCM Power is thrilled to complete its first large institutional equity offering with the leading strategic investors in our industry. The capital raised will allow us to implement the first 5-6 high impact renewable energy projects in the coming year and also serve to accelerate our growth from a development company into a globally diversified independent power producer focused in high growth markets," noted Christian Wray, Chief Executive Officer at JCM Power.
"It is especially important to JCM Power as well as our global partners," he continued, "that we enjoy the strong support of the Canadian government. We look forward to collaborating with both FinDev Canada and Global Affairs Canada over the coming years as we scale up in order to maximize the impact that the Canadian government and industry, working together, can generate in solving the critical issue of our time – climate change."
Local Renewable Energy for Reliability, Lower Cost, and the Environment
With only 44% of the sub-Saharan population having access to electricity, building more capacity is critical. However, access will only improve if the growth in energy generation is paired with an increase in grid capacity and reliability.
Upon completion, the projects are expected to generate more than 3.0 million MWh of renewable energy per year – split evenly between wind and solar power. By displacing fossil-fuel based power, this new generation will in turn avoid at least 940,000 tonnes of equivalent CO2 emissions annually. The project investments will also lead to a significant increase in local employment opportunities, and construction economic value.
Sustainable Market Development
FinDev Canada's investment will contribute to the development of sustainable local energy sectors, creating approximately 2,500 full time construction jobs. It will also add USD 9 million in economic value during the development of these projects, with the expectation of adding USD 2.25 million per year to domestic GDPs through profit, taxes and salary payments.
JCM Power's engagement on gender equality and its commitment towards gender inclusion go well above current industry practices. As an example, the company has developed an inclusion and diversity strategy and has incorporated women's empowerment as one of its primary impact objectives. FinDev Canada will collaborate with JCM Power to help it increase its contribution to women's economic empowerment. This initiative demonstrates the effects that women's economic empowerment can have on the renewable energy sector and qualifies for the 2X Challenge, Financing for women, initiative launched by the G7 DFIs to mobilize capital for business initiatives that benefit women.
This investment also helps FinDev Canada and JCM Power fulfill their respective commitments to the United Nations Sustainable Development Goals (SDGs), particularly SDG 7; Affordable and Clean Energy; SDG 9; Industry, Innovation and Infrastructure, and SDG 13; Climate Action. These are a set of clearly outlined metrics that aim to create a more sustainable world by 2030.
About FinDev Canada
The Development Finance Institute Canada Inc., operating under the FinDev Canada brand, is a Canadian institution dedicated to providing financial services to the private sector in developing countries with the aim of combating poverty through economic growth by focusing on three main themes: economic development through job creation, women economic empowerment, and climate change mitigation. The Development Finance Institute Canada Inc. is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada here.
About JCM Power
JCM Power is an independent power producer (IPP) dedicated to accelerating social, economic and environmental sustainability in growth markets through the development, construction and operation of renewable energy infrastructure. Our driving vision is to advance the clean energy age. For more information please visit www.jcmpower.ca
SOURCE FinDev Canada
For further information: Media contacts, FinDev Canada, Angela Rodriguez, Senior Communications and Marketing Specialist, +1 514 673-7154, [email protected]