Nuru Solar-Hybrid Mini Grids
This summary covers equity, quasi-equity/shareholder loan and non-shareholder loan investments by Congo Energy Solutions Limited (“CESL”) of Mauritius and/or one or more of its subsidiaries, and financial institutions and/or lenders yet to be identified into Nuru SARL and special purpose vehicles yet to be established (together, “the Project Enterprises”) in the Democratic Republic of the Congo (“DRC”). The investors seek MIGA coverage for up to US$145.54 million against the risks of Expropriation, Transfer Restriction and Currency Inconvertibility, and War and Civil Disturbance for a period of up to 15 years.
The projects involve the phased development and operation of a pipeline of solar hybrid mini-grid sites in eastern DRC by Nuru (formerly, Kivu Green Energy) with initial total capacity of up to 39MW including the expansion of Nuru’s existing 1.3MW mini-grid site in Goma. The mini-grid systems developed by Nuru will provide distributed energy through renewable sources to key off-takers including households, commercial and industrial (C&I) customers and SMEs. The mini-grid systems will utilize hybrid technology consisting of solar photovoltaic (PV) panels, a battery storage solution and diesel backstops to provide reliable and affordable electricity to its customers.
The projects are Category B under MIGA’s Policy on Environmental and Social Sustainability To view Environmental and Social Review Summary click here .
Despite its abundant renewable energy potential, DRC has one of the lowest electrification rates in Sub-Saharan Africa. Due to a lack of investment, the grid system is underdeveloped and fragmented. As such, nearly all urban areas in DRC face significant energy shortages requiring back-up solutions that can be polluting and costly. Solar mini-grids have the potential to ramp up electrification in areas of DRC where grid access is unavailable or unreliable. The key benefits from the projects will be increased access to and reliability of electricity through renewable sources. The projects will also create new employment opportunities. The projects are aligned with MIGA’s strategic priority areas as MIGA’s guarantees will support investments in a project with climate benefits in a low income, fragile and conflict-affected country.