ATI (www.ATI-aca.org) has supported the Golomoti solar PV, a 20 MW solar PV power plant in Malawi, by providing liquidity cover via the Regional Liquidity Support Facility (RLSF); RLSF was created to help tackle climate change and attract additional investments by supporting renewable energy projects in ATI’s member countries; Golomoti Solar becomes the fourth project to benefit from RLSF Cover. Cumulatively, RLSF has enabled projects with a total installed capacity of 108.5 MW to reach financial close.
In line with its strategy to address the gap in Africa’s renewable energy sector, the African Trade Insurance Agency (ATI) has supported the financing of the Golomoti solar PV, a 20 MW solar power plant in Malawi. This is the fourth project to benefit from the Regional Liquidity Support Facility (RLSF) since the launch of the facility.
RLSF, an initiative launched in 2017 by ATI and KfW Development Bank, was created to help tackle climate change and attract additional investments by supporting renewable energy projects in ATI’s member countries. It is designed to address short-term liquidity risks faced by Independent Power Producer (IPPs) that sell electricity to state owned power utilities across sub-Saharan Africa. RLSF provides cash collateral supplemented by on-demand guarantees to a bank that in turn issues a revolving standby letter of credit for the benefit of the IPP – the SBLC is available for drawdowns following a payment delay by the offtaker.
In addition to Golomoti Solar, RLSF has enabled projects with a total installed capacity of 108.5 MW to achieve financial close – a key milestone as the projects get closer to connecting to the grid. The other projects that have benefited from RLSF cover are the 7.5 MW Mubuga solar PV in Burundi (https://bit.ly/3IJZfWB), the 21 MW Nkhotakota (https://bit.ly/3lZSDJK) and 60 MW Salima solar PVs (https://bit.ly/31PDPqr) in Malawi.
Golomoti Solar was jointly developed by JCM Power Corporation, a Canadian clean energy IPP and InfraCo Africa Limited, part of the Private Infrastructure Development Group (PIDG). Construction funding was provided by JCM Power and InfraCo Africa. The electricity generated by the power plant will be sold exclusively to the Malawian national power utility, ESCOM, under the terms of a 20 year Power Purchase Agreement (PPA).
With support from Innovate UK, Golomoti Solar will include a 5MWh battery energy storage system (BESS) – the first commercial-scale solar PV plant in Malawi to include battery storage. In addition to contributing towards the increased generation of electricity and creation of employment, the project will further diversify Malawi’s energy mix as it introduces an alternative to the hydro and diesel powered projects that currently supply the bulk of the country’s electricity. The project has benefited from knowledge-sharing with its sister project, Salima Solar, with both projects being beneficiaries of the evolving regulatory framework within Malawi that has made it possible for the advancement of such renewable energy projects.
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