Africa PV News Snippets

Nuru achieves successful financial closure to $40 million Series B equity funding to build 13.7 MW metro grid capacity in Eastern Democratic Republic of Congo, to cater to urban communities; Engie Energy Access' MySol Grid Zambia lands $7.5 million debt financing for 60 mini grids in Zambia, representing almost 5 MW affordable clean energy capacity in rural regions of the country; Scatec plans to start construction for its 273 MW solar PV capacity in South Africa in Q1/2024 that it won under round 5 of the country's REIPPPP auctions in 2021.

Nuru raises $40 million for DRC projects: Renewable energy metrogrid company in Africa, Nuru has closed more than $40 million Series B equity funding to start construction on 13.7 MW PV capacity and significantly expand its operational assets in Eastern Democratic Republic of the Congo (DRC). The 13.7 MW capacity is planned for Goma, Kindu and Bunia regions. According to Nuru, the Bunia project will become the largest off-grid hybrid metro grid in Sub-Saharan Africa. Nuru says its utility scale solar metro grids are designed to provide 24×7 reliable renewable energy to DRC's urban communities.

The $40 million funding came from the International Finance Corporation (IFC), the Global Energy Alliance for People and Planet (GEAPP), the Renewable Energy Performance Platform (REPP), Proparco, E3 Capital, Voltalia, the Schmidt Family Foundation, GAIA Impact Fund, and the Joseph Family Foundation. Additionally, IFC's equity investment includes financing from the Finland-IFC Blended Finance for Climate Program. This announcement follows after initial investments in March were announced from the REPP, Proparco, and E3 Capital that helped bridge a financing gap to bolster the Series B equity fundraise, it added (see Africa PV News Snippets). It also expects to close an additional $28 million in project finance by July 2023-end.

$7.5 million for Zambia mini grids: Part of pay-as-you-go (PAYGO) and mini grids solutions provider in Africa, Engie Energy Access, MySol Grid Zambia has secured $7.5 million debt financing from the Facility for Energy Inclusion (FEI), managed by Cygnum Capital, to construct 60 mini grids in Zambia. These mini grids are expected to connect more than 40,000 people to electricity in the country. According to the company, this will enable almost 5 MW of affordable, reliable and sustainable clean energy to over 40,000 beneficiaries in rural Zambia. Engie will construct, own, operate and maintain the mini grids power from which will be supplied to the residential, commercial and 'productive use customers'. FEI has structured the transaction under the Increased Access to Electricity and Renewable Energy Production (IAEREP) program of the 11^th European Development Fund. Engie says that as part of the IAEREP, the European Union (EU) previously allocated €6 million to MySol Grid Zambia.

Financial close for South African plants: Norway's Scatec has achieved financial closure for 273 MW solar power capacity in South Africa's Western Cape province. The 3 Grootfontein solar projects were won by Scatec as part of the 5^th bidding round of the country's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in 2021 (see South Africa Concludes REIPPPP Round 5). Scatec says these are the 1^st PV projects awarded in this round to have reached financial close. It estimates a total project cost of ZAR 5.1 billion ($270 million) to bring this capacity online, to be financed by equity and ZAR 4.5 billion ($241 million) non-recourse project finance debt from the Standard Bank of South Africa as mandated lead arranger. The Norwegian company will own 51% equity in the project, its local partner H1 Holdings 46.5%, and Grootfontein Local Community Trust 2.5%. Construction is set to begin in Q1/2024 for commercial operations to start in 2025.