Development finance institution the International Finance Corporation (IFC) is providing $900 000 in funding for project development costs for an independent power producer (IPP) project in Kolwezi, in the south-eastern Democratic Republic of Congo (DRC).
The project entails a 100 MW solar photovoltaic (PV) installation, with the power to be sold to the national utility and to support mining operations and economic activity in the region.
The IFC and lead developer, power generation multinational Globeleq, have partnered with infrastructure investment company CIGenCo, energy efficiency and renewable energy equipment companies Greenshare Energy and Greenshare Congo, solar project development company Volt Renewables and IPP investment company Nzuri Energy to develop the large-scale solar PV plant.
Construction of the solar plant is expected to begin in 2023 and should be completed within 12 months.
To support the project’s development costs, the IFC is providing up to $900 000 through its Collaborations and Co-development Financing Program and up to a further $900 000 from the Finland-IFC Blended Finance for Climate Program.
The project underscores the IFC’s commitment to early-stage, innovative energy projects and the government of DRC's efforts to increase and diversify its electricity output. According to World Bank data, only about 19% of the DRC’s population had access to electricity in 2019.
“Ramping up energy production capacity in the DRC is essential to increasing economic growth and improving living standards in the country. The IFC is proud to provide early-stage growth capital to this ground-breaking project, which will deliver clean and competitive power in a region where it is currently in limited supply,” says IFC country manager for Central Africa Sylvain Kakou.
“I am proud and excited to bring seasoned international investors IFC and Globeleq to the DRC. The DRC urgently needs investment in its power sector to meet its increasing industrial demand and production deficit. Together with the IFC and Globeleq, we will build a landmark power plant for the DRC that will catalyse its nascent independent renewable energy industry,” says Greenshare Congo DRC representative Dr Adolphe Ngoyi Kitengie.
“We are excited to partner with IFC on this project and build upon the solid work of the original developers. The use of renewables will reduce emissions and decrease the cost of electricity in the region. Globeleq has experience in delivering renewable energy projects, and we look forward to contributing to DRC’s economic development and supporting its clean energy transition,” comments Globeleq chief development officer Jonathan Hoffman.