1st close for IFC & SIMA-led solar green bond; Glencore invests in PV plant in South Africa (SA); Yellow Door bolsters wheeling market presence in SA; World Bank’s $300M for DRE; Financial close for Engie-led PV hybrid project; d.light’s Sub-Saharan Africa expansion through SOL!
Solar green bond: The International Finance Corporation (IFC) and the Social Investment Managers and Advisors LLC (SIMA) along with other financiers have reached the 1st close of a $150 million solar green bond with $131 million. This will finance productive-use solar projects across Africa with a focus on rooftop solar sector and small and medium-sized enterprises. IFC said the bond will offer short-term corporate financing and project financing of up to 10 years to support small and medium-size local developers for individual projects less than 5 MW. Focus industries are manufacturing, services, education, healthcare, and agri-processing. The bond includes the 1st investments under the IFC and Global Energy Alliance for People and Planet (GEAPP) partnership.
Apart from IFC and SIMA, other lenders for the $131 million 1st close include Shell Foundation, the US Development Finance Corporation, the Schmidt Family Foundation, FMO, the Dutch entrepreneurial development bank, the German development finance institution (DEG), the Belgian Investment Company for Developing Countries (BIO), the Development Bank of Austria (OeEB). Second close, expected by April 2024, will be led by the private sector for an additional $25 million to $30 million.
Mining company goes for solar: Switzerland-headquartered metals miner Glencore is investing in a 25 MW solar power plant in South Africa’s North West Province near Brits. The project will generate electricity for Rhovan, a Glencore Ferroalloys managed vanadium mining and processing facility. Power will be fed into Rhovan’s network and is expected to supply close to 30% of its annual energy demand. It expects to save more than 48,000 tons/year in carbon emissions at the plant with the reduction in grid-supplied electricity. The project is planned to come online in late 2024.
“Not only does our mine produce a range of vanadium products that can be used in applications that support a low-carbon economy, but by installing a solar plant that will supply renewable electricity to our operation, we are reducing the mine’s overall emissions footprint,” said Glencore Ferroalloys CEO, Japie Fullard.
Yellow Door Energy has completed the development of a 48 MW solar plant in South Africa as part of its wheeling portfolio of 240 MW. (Photo Credit: Yellow Door Energy)
YDE expands in solar wheeling market: UAE-based energy company Yellow Door Energy (YDE) has completed the development phase of its 48 MW solar power plant in Leeudoringstad in South Africa’s North West province. This project, it says, positions YDE as a major player in the solar wheeling market of the country as it gets ready to develop an additional 192 MW PV to expand its total solar wheeling capacity to 240 MW in Leeudoringstad. Eskom’s wheeling platform allows for energy generators to use its distribution or transmission networks to supply power to an end-user located in another area. It has become a very popular tool with private energy generators. YDE says a significant portion of its 48 MW plant has been committed to companies and negotiations are on with other businesses to offtake the remaining capacity via power purchase agreements (PPA). The construction of the project is scheduled to begin in Q2/2024 and commissioning by Q2/2025.
World Bank facility for DRE: The World Bank has announced a $300 million facility for the Eastern and Southern Trade and Development Bank (TDB) to support distributed renewable energy (DRE) and clean cooking private sector projects in select countries of Africa. It targets to provide electricity for up to 5 million people, access to clean cooking for up to 1 million and add up to 35 MW new energy capacity. The financing forms the 1st phase of the World Bank’s International Development Association’s (IDA) $5 billion Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) program. Under this, the bank aims to provide access to electricity to up to 100 million people in Africa over the next 7 years. The $300 million will be provided via the ASCENT Regional Energy Access Financing Platform (REAF) that will now be established.
Engie’s Oya hybrid project moves forward: France’s Engie has announced achieving financing close for the Oya Energy Hybrid Project in South Africa, calling it the largest hybrid energy project of its kind in Africa. The company is a 36% stakeholder in the project that comprises 155 MW solar PV, 86 MW wind and 92 MW/242 MWh battery energy storage capacity. Other owners of this greenfield development are G7 Renewable Energies, Meadows Energy and Perpetua Investment Holdings. The partners won a 20-year power purchase agreement (PPA) with the national utility Eskom in 2023. The consortium is one of the 11 preferred bidders under South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (REIMPPPP). Construction has already begun on site in the Komsberg Renewable Energy Development Zone (REDZ).
Off-grid solar expansion in Africa: Solar home systems (SHS) provider d.light has entered into a partnership with SOL! Groupe to expand its geographical footprint to newer markets in Sub-Saharan Africa. SOL! Groupe operates in Niger, Burundi, Chad and the Central African Republic (CAR). Under the collaboration, d.light says it will supply its affordable solar-powered household appliances and low-cost PayGo personal finance service to low-income families and communities in Chad, CAR and Niger. This includes solar-powered portable lanterns, solar home systems, inverters, plus associated appliances including fans and televisions. SOL! Groupe will sell these products using its distribution networks and in-country agents.
