By Faridat Salifu
In a significant boost for renewable energy in the Democratic Republic of Congo (DRC), the Multilateral Investment Guarantee Agency (MIGA) has announced a $50.3 million guarantee for Congo Energy Solutions, known as Nuru.
This move supports Nuru’s ambitious project to install metropolitan electricity grids powered by hybrid solar energy in the conflict-prone eastern region of the DRC.
Following in the footsteps of the International Finance Corporation (IFC), MIGA, a subsidiary of the World Bank Group, has stepped in to support Nuru’s efforts to improve electricity access in the towns of Goma, Kindu, and Bunia.
The project aims to deploy an installed capacity of 15 MW, providing much-needed power to both residents and businesses.
Investment and Funding
The largest metropolitan network in Nuru’s portfolio will be located in Bunia, supported by a $40 million Series B financing round. This round has attracted investments from the IFC and Proparco, a subsidiary of the French Development Agency (AFD).
Additional financial support has come from the Renewable Energy Performance Platform (REPP), the Global Energy Alliance for People and Planet (GEAPP), E3 Capital, the GAIA Impact Fund, and French renewable energy producer Voltalia. Significant contributions have also been made by the Schmidt Family Foundation and the Joseph Family Foundation.
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Mitigating Conflict Risks
Despite the ongoing instability in eastern DRC, particularly due to the M23 rebellion, Nuru’s directors are optimistic about the project’s potential.
MIGA’s guarantees play a crucial role in mitigating the risks for investors in this volatile region. The guarantee includes partial coverage against expropriation, an innovative feature that provides separate coverage for each mini-grid network.
MIGA’s involvement is expected to bolster investor confidence and ensure the successful implementation of the project.
“The partial coverage of expropriation by MIGA is one of the innovative aspects of the project. Each mini-network is covered separately from the point of view of expropriation,” stated the World Bank Group agency.
A Sustainable Future for Eastern DRC
This unprecedented mobilization of funds and resources is projected to supply electricity to 28,000 households and businesses in the eastern DRC.
The project aligns with broader global efforts to address climate change and promote sustainable development. It also aims to tackle issues such as poverty, inequality, and environmental degradation.
Nuru’s hybrid solar mini-grids represent a significant step towards achieving a more sustainable future for the DRC. By providing reliable and renewable energy, the project is expected to have a transformative impact on the region’s socio-economic landscape.
As the DRC navigates its path towards stability and development, initiatives like Nuru’s hybrid solar mini-grids, backed by MIGA’s financial guarantees, are vital in ensuring long-term progress and sustainability.
