By Karl-Erik Stromsta in London
Tuesday, February 18 2014
The plant, set to enter construction immediately and be fully operational by this summer, will swell by 8% the total electricity generation capacity of Rwanda, which currently stands at around 110MW in a country of more than 11 million.
Scatec, which late last year completed the 75MW Kalkbult PV array in South Africa, the first utility-scale PV plant on the African continent, will act as lead equity investor, EPC contractor and O&M provider for the Rwanda project.
Norfund – a private-equity company owned by the Norwegian government focused on boosting economic growth in developing countries – will also hold a sizeable equity stake in the project and provide a mezzanine loan.
The original developer, Gigawatt Global, whose president, Yosef Abramowitz, is also the co-founder of Israeli solar developer Arava Power and is a well-known “impact investor” globally, will retain a minority stake.
Dutch development bank FMO provided senior debt and arranged the debt package, with the FMO-backed Emerging Africa Infrastructure Fund also supplying senior debt.
The array will be located 60km outside the capital of Kigali in a community established for orphaned youth after the Rwandan genocide of the 1990s, and has a 25-year power purchase agreement with Rwanda’s energy authority.
One of the world’s poorest countries, Rwanda has set a goal of providing electricity to half its population by 2017, by which time it hopes to have 560MW of power-generation capacity in place.
With the utility-scale solar market fast developing in South Africa, and beginning to take off in North Africa, there are hopes that developers will increasingly target countries other countries in sub-Saharan Africa, where getting traditional power plants financed and built is often a major challenge.
In late 2012 the UK-based developer Blue Energy secured a feed-in tariff in Ghana for its 155MW Nzema PV project, with construction slated to start this year.
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