In Golomoti village around 100 km from the capital Lilongwe in Malawi, one of IFU’s portfolio companies, JCM Power Corporation (JCM Power), has started the construction of a 20-megawatt PV solar power park. This is the company’s second solar power park following a 60-megawatt project in Salima that started producing electricity during the fourth quarter of 2021.
As only around 10 per cent of the population in Malawi has access to electricity, the additional generating capacity is highly needed. It will contribute to increasing the share of RE in the energy mix in Malawi, create a more reliable power supply and potentially reduce the use of firewood for cooking, which has adverse health effects and leads to deforestation.
“This project is a perfect match with our impact priorities that have a strong focus on improving the living conditions for people in developing countries, supporting the green transition and creating access to essential services like electricity,” said Lars Krogsgaard, CIO at IFU.
Christian Wray, CEO of JCM Power added, “Malawi is a country with abundant renewable resources, and we are proud to be a leader in assisting the country in unlocking the potential of renewable energy. With the support of partners like IFU, who are dedicated to being active investors in emerging markets, projects like Golomoti are achievable.”
First solar park with battery storage
With support from Innovate UK, Golomoti is the first commercial solar park in Malawi to introduce a Battery Energy Storage System (BESS). In addition to the installation of the solar modules on trackers this will lead to improved performance of the facility. When commissioned in early 2022, it is expected that the Golomoti solar park will provide electricity for more than 100,000 households and reduce CO2 emissions by around 3,000 tCO2e annually.
The two new solar parks erected by JCM Power are in line with the Malawian strategy to attract more private investments in the energy sector, which is estimated to have a funding gap of USD 2.5 billion towards 2030.
“We are pleased to assist the Malawian government in realising its strategy to attract more private investments to the energy sector, and as a first mover, we will hopefully inspire other investors to follow.”
Lars Krogsgaard, CIO of IFU.
The Danish Green Future Fund is providing loan financing
The financing of USD 13.6 million is provided by IFU through the Danish Green Future Fund set up to support the green transition in Denmark and abroad.
“Having access to additional funding through the Danish Green Future Fund enables IFU to support more projects and accelerate the green transition in developing countries like Malawi,” said Lars Krogsgaard.
The Danish SDG Investment Fund managed by IFU is an investor in JCM Power, which in partnership with PIDG company Infraco Africa Limited (“Infraco Africa”), has developed and provided the equity financing to the Golomoti solar park.
About JCM Power
JCM Power is an independent power producer (IPP) dedicated to accelerating social, economic and environmental sustainability in growth markets through the development, construction and operation of renewable energy infrastructure. Our driving vision is to advance the clean energy age. For more information please visit: www.jcmpower.ca
About InfraCo Africa
InfraCo Africa is part of the Private Infrastructure Development Group (PIDG). InfraCo Africa seeks to alleviate poverty by mobilising private investment into high-quality infrastructure projects in sub-Saharan Africa’s poorest countries. It does this by investing directly into early-stage projects or by funding experienced teams to provide project development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). For more information please visit: www.infracoafrica.com
About the Private Infrastructure Development Group (PIDG)
PIDG is an innovative infrastructure project developer and investor, which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 171 infrastructure projects to financial close, which provided an estimated 217 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC. For more information please visit: www.pidg.org