Siemens and Desert Technologies have launched a joint venture to develop and invest in solar and smart infrastructure in Africa, the Middle East, and Asia. The JV, Capton Energy based in Dubai, UAE, aims to build up a portfolio of investments in projects with an aggregate capacity of more than 1 gigawatt (GW) and will support projects that provide clean, reliable, and affordable energy in areas that need it most. Siemens, through its financing arm Siemens Financial Services (SFS), and Saudi Arabia-based Desert Technologies are joint shareholders in Capton. The company will primarily target investments in existing and greenfield solar power projects, typically in a range of 20 to 100 megawatts (MW) of electricity generation capacity. Capton will benefit from the partners’ ability to supply technology and expertise to facilitate the development of new solar facilities. The platform will also offer third party investors the opportunity to participate in the energy transition journey.
Based in Jeddah, Saudi Arabia, Desert Technologies is a solar PV and smart infrastructure holding company, focused on manufacturing and sustainable investments. The company has completed more than 40 solar projects in 22 countries. Solar power enables places without reliable energy networks to leapfrog the legacy infrastructure common in developed nations and benefit from sustainable, clean, and affordable power. Such efforts to fully optimize the potential of the sun and technologies, such as sustainable mini-grids and smart distributed energy systems, will have a positive impact.
Demand for solar energy is surging in the Middle East, Africa, and Asian nations with abundant sunshine. In the Middle East alone, total installed capacity for solar power generation more than quadrupled from 2016 to 2020, according to data from the International Renewable Energy Agency in Abu Dhabi. Efforts to bring sustainable electricity supplies to rural areas through the use of off-grid and battery storage systems are helping to spur this growth, as more countries shift away from fossil fuels that contribute to global warming.
Capton Energy is already assembling a pipeline of solar-themed investments and is in discussions to launch the inaugural fund raising. Capton, with Siemens and Desert Technologies as strategic partners, is confident that it has the complete toolkit to bring an optimum blend of development, investment, and technological capabilities to meet the growing need for solar energy in its target markets.