FinDev Canada announced today a USD 20 million equity investment in Canadian-based JCM Power to encourage renewable energy projects from Sub Saharan Africa, Latin America and the Caribbean. JCM Power plans to create 10-12 utility-scale renewable projects focusing on solar energy and wind electricity and 1-2 HVDC transmission projects over the next 5 Decades.
“Promoting Canadian experience in renewable energy in emerging markets is a priority for us”
Paul Lamontagne, FinDev Canada’s Managing Director.
For a decade, JCM Power has been advancing the clean energy age by investing at the greenfield development and construction of clean energy projects that are fiscally, publicly, environmentally and socially sustainable in countries such as Honduras, Haiti, Kenya and Malawi. Benefiting from strict corporate and socially responsible frameworks along with a commitment to ethical due diligence, it has become a world leader in sustainable energy. Becoming a substantial shareholder in one of Canada’s leading renewable energy companies focused on growing markets is consistent with FinDev Canada’s investment plan. Facilitating the shift from electric utilities out of fossil-fuel based electricity to renewable energy resources is an integral element of its Green Growth sectoral targets.
“We’re extremely excited to be working with JCM Power as a pioneer in renewable clean energy projects and as a Canadian firm.” Stated Suzanne Gaboury, Chief Investment Officer at FinDev Canada,”We are committed to contributing to JCM Power’s continued growth and allow it to attract additional investors, including other Canadian institutions.”
The investment by FinDev Canada forms part of a USD 116 million equity offering which also contains other Canadian and international DFIs and investors.
“JCM Power is delighted to complete its first large institutional equity offering with the top strategic investors within our industry. The capital raised will allow us to execute the initial 5-6 high influence renewable energy jobs in the upcoming year and also serve to accelerate our growth from a development company into a worldwide diversified independent power producer focused in high growth markets. “It is especially important to JCM Power as well as our international partners,” he continued,”we enjoy the strong support of the Canadian authorities. We look forward to collaborating with FinDev Canada and Global Affairs Canada over the coming years as we scale up in order to maximize the effect the Canadian government and industry, working together, can create in solving the critical issue of our time — climate change.”
Christian Wray, Chief Executive Officer at JCM Power
Local Renewable Power for Reliability, Reduced Price, and the Environment
With just 44% of the sub-Saharan people having access to electricity, building more capacity is critical. However, access is only going to improve if the growth in energy creation is paired with a rise in grid capability and reliability. Upon completion, the projects are expected to create more than 3.0 million MWh of renewable energy per year — divide evenly between wind and solar power. By displacing fossil-fuel established power, this new generation will subsequently prevent at least 940,000 tonnes of equivalent CO2 emissions annually. The project investments will also lead to a substantial growth in local employment opportunities, and construction economic value.
Sustainable Market Development
FinDev Canada’s investment will contribute to the development of sustainable local energy businesses, producing approximately 2,500 full time construction jobs. It will also add USD 9 million in economic value during the development of these projects, together with the expectation of including USD 2.25 million per year to domestic GDPs through profit, taxes and salary obligations. JCM Power’s engagement on gender equality and its commitment towards gender inclusion go well over current industry practices. As an example, the business has developed an inclusion and diversity strategy and has integrated women’s empowerment as one of its principal impact goals. FinDev Canada will collaborate with JCM Power to help it increase its contribution to women’s financial empowerment. This initiative demonstrates the consequences that women’s economic empowerment can have on the renewable energy sector and qualifies for the 2X Challenge, Funding for women, initiative established by the G7 DFIs to mobilize capital for company initiatives that benefit girls.
This investment also helps FinDev Canada and JCM Power fulfill their various responsibilities to the United Nations Sustainable Development Goals (SDGs), especially SDG 7; Affordable and Clean Energy; SDG 9; Industry, Innovation and Infrastructure, and SDG 13; Climate Action. These are a set of clearly summarized diagrams which aim to create a more sustainable world by 2030.
