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Utility-scale solar field to lift Rwanda’s energy capacity by 6%

30th January 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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An 8.5 MW solar field due to be officially launched in Rwanda next week, is set to boost the Central African State’s energy generation capacity by 6%, solar project developer Gigawatt Global has revealed.

The landmark $23.7-million project is built on land owned by the Agahozo-Shalom Youth Village, whose mission is to care for children orphaned before and after the Rwandan genocide.

The village is leasing land to house the solar facility, the fees from which would help pay for a portion of the village's charitable expenses.

Norway-based Scatec Solar – one of several multinational companies to inject equity into the intitiative – said the project would become an important source of clean and reliable electricity for the next 20 years and beyond.

“The people of Rwanda should be proud to host the first utility-scale solar power plant in East Africa, and we hope that the pioneering spirit of Rwandan authorities may serve as an inspiration to other countries in the region,” commented Scatec Solar executive VP Torstein Berntsen.

The solar field was the first Power Africa project of its size to reach completion since the launch of the initiative by US President Barack Obama in July 2013.

US-based Power Africa worked with African governments, the private sector and other partners to add more than 30 000 MW of cleaner, more efficient electricity generation capacity in sub-Saharan Africa.

Project cofunder Overseas Private Investment Corporation (OPIC) president and CEO Elizabeth Littlefield said the project was a clear demonstration that solar would become a key part of Africa’s energy solution, while Gigawatt Global cofounder and MD Chaim Motzen said it would serve as a catalyst for “many more” sustainable energy projects in the region.

“Throughout the process, we had the full cooperation of the Rwandan government and its agencies, and we are looking forward to bringing additional sustainable energy solutions to more African and developing countries,” he said.

The Rwanda solar project brought together an international consortium of financing partners, which saw debt provided by the Netherlands Development Finance Company, as well as London-based Emerging Africa Infrastructure Fund.

Additional mezzanine debt was provided by the Norwegian Investment Fund for Developing Countries (Norfund), while equity was provided by Scatec Solar – which also served as the engineering, procurement and construction contractor – Norfund and KLP Norfund Investments.

Grants were received from the US government through OPIC’s Africa Clean Energy Finance grant and from Finland’s Energy and Environment Partnership.

London-based law firm Norton Rose Fulbright served as international legal counsel.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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