DFC Commits $25 Million Loan for Malawi’s Golomoti Solar Project

The U.S. International Development Finance Corporation (DFC) has signed a loan agreement with the developers of Malawi’s Golomoti solar project. DFC will provide a $25 million loan for the solar power plant which is already in the operational phase and developed under a public-private partnership.

Located in the Central region’s Dedza district, the Golomoti solar plant is developed by the Canadian independent power producer JCM Power, in partnership with Infraco Africa, a part of the Private Infrastructure Development Group (PIDG). The 20 MW solar plant is equipped with a 5MW/10MWh battery system.

The Golomoti solar plant is connected to the adjacent Golomoti substation which provides clean and reliable power to Malawi’s national grid. DFC’s loan will help in increasing and improving the capacity of the plant.

DFC Chief Executive Officer Scott Nathan signed the loan commitment letter in the presence of Malawian President Lazarus McCarthy Chakwera. This was was done at a meeting on the sidelines of the 77th session of the UN General Assembly in New York.

Scott Nathan said, “The Golomoti plant also includes Malawi’s first battery energy storage system, creating a reliable energy source that will promote economic stability for the country’s future development.”

Christian Wray, CEO of JCM Power, said, “We are proud to assist Malawi in unlocking its renewable energy potential and to be the industry’s market leader in the country. With the support of partners like DFC, projects like Golomoti are achievable.”

JCM Power has already secured a loan from the Investment Fund for Developing Countries (IFU) for the Golomoti solar project. Africa Trade Insurance Agency (ATI) also covers a liquidity guarantee for the project.

In Malawi, only 14.9% of the population has access to electricity, according to the World Bank. The Golomoti solar project makes outstanding contributions to enriching the country’s electricity sources and reducing its reliance on diesel generators. The project also demonstrates the feasibility to use renewable energy to solve Africa’s energy shortage problem and encourages similar projects in the continent.