- The joint development of the Green Giant Project will expedite the construction of the first 200MW phase of the investment.
- Mini-grids account for more than half of all new connections in DRC.
- The agreement represents a significant milestone in the collaborative efforts between SkyPower, AFC, and the DRC.
The Democratic Republic of Congo (DRC), Africa Finance Corporation (AFC) and SkyPower Global have entered into a joint development agreement for the first phase of SkyPower’s Green Giant project in the mineral-rich country.
The move is meant to promote the use of renewable energy in the Eastern African state. This 200MW Phase one is a crucial step towards achieving the landmark 1,000MW Solar Power Purchase Agreement (PPA) signed between SkyPower and the DRC’s state-owned utility, Société Nationale d’Electricité (SNEL).
The partnership brings together SkyPower’s extensive experience in developing large-scale solar projects and AFC’s successful track record of de-risking and funding well-structured power and infrastructure projects across Africa.
Together, they aim to provide sustainable energy solutions for the continent in the fight against climate change.
This agreement, following COP28, demonstrates the commitment of both organizations to the United Nations Sustainable Development Goals, particularly the importance of partnerships in accelerating renewable energy adoption and addressing the climate crisis.
The Green Giant Project in DRC
The DRC Green Giant project, marked by the initial PPA with SNEL, signifies the DRC government’s commitment to increasing electrification rates through renewable energy partnerships.
President Félix Tshisekedi’s vision aims to significantly boost the nation’s clean energy output, stimulate the DRC’s GDP by $2.3 billion, and create approximately 30,000 jobs.
The Joint Development Agreement will expedite the construction of the first 200MW phase of the project, with all necessary approvals and land allocation already in place. Construction is set to begin by 2025.
The agreement represents a significant milestone in the collaborative efforts between SkyPower, AFC, and the DRC, and serves as a model for future joint initiatives, promoting sustainable economic development and a cleaner, more resilient future for the region.
“Partnering with SkyPower, an institution known for their decades of global expertise in large-scale solar projects, is aligned with our mission to advance energy access through renewable energy,” said Amadou Wadda, Senior Director of Project Development and Technical Solutions at Africa Finance Corporation (AFC).
Through their collaboration, they aim to contribute significantly to rapid industrialization, local job creation, sustainable economic growth, and a pragmatic transition to net zero in the Democratic Republic of Congo and Africa as a whole
Kerry Adler, President and Chief Executive Officer of SkyPower, emphasized AFC’s leadership role and commitment to fast-tracking essential energy projects, which is crucial in leveraging solar energy for economic development, job creation, and effective climate change mitigation.
“Partnering with AFC exemplifies a concerted effort to realize ambitious goals set by forward-looking countries like the DRC, aiming for a brighter, more sustainable future for everyone,” noted Adler.
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“This agreement highlights AFC’s pivotal contribution to promoting renewable energy solutions and both AFC and SkyPower’s unwavering commitment to ensuring a greener, more resilient world.”
According to the International Energy Agency (IEA) access to power has been low in DRC with Less than 10 per cent of the population having access to electricity, making Democratic Republic of the Congo the country with the largest number of people without access in Africa after Nigeria.
Last year, DRC-based energy company Nuru raised $40 million in equity funding as it works towards its goal of providing 24-hour power for five million people in the country.
Founded in 2015, Nuru, which was previously known as Kivu Green Energy, deploys and operates renewable energy powered metrogrids in strategic urban zones of the DRC. It built the country’s first mini-grid in 2017.
The company’s utility-scale solar mini-grids are designed to provide 24/7 reliable and renewable energy to the communities in which they are installed. In 2020, it opened a 1.3-megawatt facility in the city of Goma, making it the largest mini-grid in sub-Saharan Africa with no connection to a national grid.
Nuru’s $40 million Series B round was led by the International Finance Corporation (IFC), the Global Energy Alliance for People and Planet (GEAPP), the Renewable Energy Performance Platform (REPP), Proparco, E3 Capital, Voltalia, the Schmidt Family Foundation, GAIA Impact Fund, and the Joseph Family Foundation.
