Project Description
This summary describes the application made to MIGA by Green for Growth Fund Southeast Europe S.A., SICAV-SIF Luxemburg (Guarantee Holder or GGF), entity that is seeking MIGA guarantee(s) covering the risk of Breach of Contract (“BoC”), for a period of up to 13 years for its €26.60 million senior secured debt provided to SPV BLUE1 (“SPV BLUE1” or Project Enterprise).
The Project consists of 103,020 solar panels, office buildings, a 110/35 kV substation, access roads, and a parking area. The Project’s 110 kV OHTL temporarily connects the power plant to the 220 kV Hoxhara-Fier OHTL until the project can connect to the new 220/110/35 kV Hoxhara substation, which is estimated to be commissioned in early 2025. The Hoxhara-Fier OHTL and Hoxhara substation, which are under the responsibility of the Transmission System Operator (OST sh.a.), have been designed to serve existing and planned solar power projects in the area.
The project benefited from a technical assistance grant from MIGA’s Fund for Advancing Sustainability (FASTF). This grant enabled the project to engage a specialized firm to conduct a Critical Habitat Assessment (CHA) in alignment with IFC Performance Standard 6 (PS6). A comprehensive CHA is essential for identifying and mitigating potential impacts on endangered species or sensitive ecosystems within the project area.
Environmental Categorization
The Project has been categorized as category [B] under MIGA’s Policy on Environmental and Social Sustainability. Click Here to access Environmental and Social Review Summary (ESRS).
Development Impact
The Project aims to support increased solar power generation and to contribute to the diversification of renewable energy sources in Albania. Currently, 1% of total energy production comes from solar. The Project will contribute to increase in solar-based renewable energy production. The Project is also expected to contribute to the reduction of GHG emissions though the displacement of imported electricity from fossil fuel resources, which in turn is expected to contribute to Albania’s climate targets of reducing emission by 11.5% by 2030 compared with 2016.
