Location: Mubuga, Gitega Province
Project type: Grid-connected, greenfield
Technology: Solar PV
Camco involvement: Origination
This ambitious project in Burundi involves the construction of a 7.5MW solar PV power plant that is expected to increase the country’s baseload generation capacity by as much as 15%.
Located in Mubuga, in the Gitega Province, the development will also be the first grid-connected solar project by an independent power producer (IPP) in Burundi. Developed as a public-private partnership between the Government of Burundi and Gigawatt Global Coöperatief, the project will pave the way for other renewable energy projects in the country.
Last year, the project became the first REPP-supported grid-connected project to achieve financial close after Gigawatt Global and Evolution II Fund, managed by Inspired Evolution Investment Management, met all conditions included in the original financing agreement. Full construction began in January 2020.
It is estimated that the plant will supply the electricity needs of at least 87,600 people and businesses, and provide 300 part-time jobs during construction and up to 50 full-time jobs during the operational phase.
The developers also plan to construct a scalable mini-grid scheme alongside the project for the local community in Mubuga village as part of a corporate social responsibility initiative and will provide yearly support to the community to improve economic growth and living standards.
REPP has supported the development of the Mubuga project since December 2016. It has now agreed to provide additional funding for construction, via a construction bridge loan (alongside Evolution II Fund) and a subordinated term loan.
As the first of its kind in Burundi, the project has a strong demonstration impact, building capacity within government and strengthening political buy-in and support for small-scale renewables, thereby establishing a more viable market renewable energy projects in the country.
“The scale of impact the Mubuga project will have on ordinary people’s lives and businesses cannot be overestimated, and in the process will mark the dawn of a new era for renewable energy in Burundi. REPP’s support has made this possible. The project will be the model that will be followed by other foreign investors and will raise the image of Burundi for long-term investment by international financiers.”
- Honourable Jean Jacques Nyenimigabu, senior adviser to the president and former MP from Mubuga