The World Bank Group is partnering with the African Development Bank and other partners on Mission 300, an ambitious initiative to connect 300 million people to electricity in Sub-Saharan Africa by 2030.
Guarantees from the WBG Guarantee Platform, housed at MIGA, guarantees are well-suited to mitigate the risks associated with investing in electricity projects in emerging markets, including in countries with a history of fragility and conflict. These guarantees, covering both new investments and project expansions, help to ensure that investors are able to operate in a stable and predictable environment. The Platform’s de-risking instruments also provide investors with additional benefits, given the WBG's capacity to intervene and play an honest broker role in case of disputes or claims.
In particular, MIGA has supported projects across the electricity value chain, including household connections, C&I and grid-edge innovations, renewable energy IPPs, and transmission and distribution.
EXAMPLES OF MIGA-SUPPORTED PROJECTS IN ENERGY IN AFRICA
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Household Connections
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C&I and Grid-Edge Innovations
MIGA’s guarantees also support investment in other distributed energy business, such as renewable energy solutions targeting commercial and industrial (C&I) customers, helping to decarbonize their energy supply, together with improvements in the quality, reliability, and affordability of power supply.
The World Bank Group’s guarantees help build investor confidence to implement new business models in an evolving energy regulatory environment, complementing the host country’s ambitious strategy to decentralize and modernize their energy systems through wheeling, energy trading, and captive power solutions.
MIGA has recently issued guarantees to Konexa, Kube Energy, and Escotel to support investment in the implementation of their innovative business models.
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Renewable Energy Independent Power Projects
MIGA has a long history in supporting private sector investment in renewable energy independent power projects (IPPs) as well as transmission and distribution.
MIGA guarantees have played an instrumental role in introducing private sector investment into countries’ energy systems. In many developing countries a limited track record or a recent history of fragility can pose significant challenges to attracting private investment. Through its range of non-commercial risk and payment guarantee solutions, The Platform’s guarantees have boosted investor confidence, and contributed to the successful implementation of the first IPP projects in Djibouti, Burkina Faso, Malawi, and Gabon, among others.
These renewable energy-based projects have positively contributed towards the host countries’ ambitions of transitioning to renewable based electricity, decarbonizing the energy sector, reducing the overall cost of generation, and contributing to the overall financial sustainability of the utility.
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