Engie SA, the French utility that led a US$1 billion buyout of a rival's renewable energy assets in Africa last year, expects more deals to be seen in the industry across the continent.

While focusing on integrating the assets it bought from Actis LLP rather than seeking more acquisitions, Engie is looking to develop a pipeline of seven gigawatts of projects, said Mohamed Hoosen, the company's managing director for Asia, Middle East and Africa.

It may also invest in transmission projects in South Africa, once those are opened up for private participation, he said.

The company's acquisition of BTE Renewables from Actis, which it bought with Meridiam SAS, comes as large renewables companies look to bolster their position on the continent. The industry is also attracting new entrants.

A unit of Old Mutual is in talks with companies including BlackRock to sell a stake in one of the continent's biggest renewable energy businesses, Bloomberg reported in June.

Africa Finance Corp and Egypt's Infinity Group acquired Lekela Power in 2022 and Copenhagen Infrastructure Partners secured control of South Africa's Mulilo Energy Holdings Ltd. last year.

Mainstream Renewable Power is looking for an investor in its African projects and Red Rocket may sell its business.

"It's inevitable that there's going to be consolidation in the renewable space," Hoosen said in an interview. "Renewables is a scale business, the bigger you are, the more you are developing, the more purchasing power you have in acquiring panels or wind turbines, you are better positioned to be competitive." -- Bloomberg.