Japan’s Eurus Energy Holdings has taken a 25% stake in the South African subsidiary of Aussie renewables developer Windlab Ltd (ASX:WND) and will assist it in the development of its 1,650-MW portfolio of wind projects.

The funding commitment to Windlab Africa Pty Ltd will help promote wind power generation in the East African region, Eurus said on Wednesday without providing financial details on the investment. Windlab will keep a 75% interest and remain the majority shareholder in the unit, which is currently developing 16 wind projects with a combined capacity of 1,650 MW. The schemes are located in Ethiopia, Kenya, Tanzania, Zambia, Uganda, Rwanda, Burundi and Malawi.

Sub-Saharan Africa is struggling with a low rate of electrification, while demand is rising and is expected to follow economic growth, Eurus noted.

The Japanese group is already partnering with Windlab in Australia, where the companies jointly own the 19.8-MW Coonooer Bridge wind farm in Victoria, which went live in 2016, and are building the 60.5-MW Kennedy hybrid renewable energy project in North Queensland. Construction of the complex began in December 2018 and is expected to be completed by the end of this year.