SkyPower and AFC join forces for 200MW solar power project in DRC

DRC – SkyPower Global, a leading utility-scale renewable energy developer, has finalized a Joint Development Agreement (JDA) with the Africa Finance Corporation (AFC) for the co-development of a 200MW solar power plant in the Democratic Republic of Congo (DRC).

This project is part of a larger 1,000MW Solar Power Purchase Agreement (PPA) signed between SkyPower and the DRC’s state-owned utility, Société Nationale d’Electricité (SNEL).

“Partnering with SkyPower, an institution known for their decades of global expertise in large-scale solar projects, is well aligned with our mission to advance energy access on the continent through renewable energy,” said Amadou Wadda, Senior Director of Project Development and Technical Solutions at Africa Finance Corporation (AFC).

“Through this collaboration, we aim to contribute significantly to rapid industrialization, local job creation, sustainable economic growth, and a pragmatic transition to net zero in DRC and Africa as a whole.”

AFC disclosed that all necessary approvals for the project were secured, and land allocation was completed, ensuring a swift transition to the development stage and the commencement of construction by 2025.

Kerry Adler, President & Chief Executive Officer of SkyPower, praised AFC’s role in accelerating the deployment of renewable energy projects across the continent to drive economic development, create job opportunities, and combat climate change.

“Partnering with AFC exemplifies a concerted effort toward realizing the ambitious goals set by forward-looking countries such as the DRC, aiming for a brighter, more sustainable future for everyone,” Adler noted.

“This agreement underscores AFC’s pivotal contribution to promoting renewable energy solutions and both AFC and SkyPower’s unwavering commitment and dedication to ensuring a greener, more resilient world.”

Last year, The Democratic Republic of Congo’s (DRC) energy company Nuru secured US$40 million for the construction of a 13.7 MWp project.

After securing this series B equity funding, Nuru said it would commence work on three projects in the eastern cities of Goma, Kindu, and Bunia.

Nuru anticipates that the Bunia project will become the largest off-grid solar hybrid metrogrid in sub-Saharan Africa.

The funding was provided by equity investors such as International Finance Corporation (IFC), the Global Energy Alliance for People and Planet (GEAPP), and the Renewable Energy Performance Platform (REPP), among others.

According to an analyst from the IFC, a metrogrid is a small-scale power generation and distribution system consisting of variable renewables, energy storage systems, and distribution facilities near load centers.

“Closing the Series B is a significant milestone in Nuru’s journey, but also demonstrates the viability of the metrogrid model in the distributed energy sector in Africa,” said Jonathan Shaw, co-founder, and CEO of Nuru.

Nuru anticipates receiving an additional US$28 million in project finance by the end of the month. Its Series A was led by E3 Capital, formerly Energy Access Ventures, in 2018, together with EDFI ElectriFI, an EU-funded electrification financing initiative managed by EDFI Management Company.

This round of funding will help build Nuru’s current operating metrogrid portfolio in the cities of Goma, Beni, Tadu, and Faradje.

“Expanding access to electricity is instrumental in supporting economic growth and improving living standards for people and businesses in the DRC,” said Malick Fall, country manager for the DRC at IFC.

“IFC’s support for Nuru will play a pivotal role in bridging the energy access gap by using an innovative business model, new technology, and more climate-friendly power sources.”

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