In a landmark move to address the Democratic Republic of the Congo’s (DRC) acute energy challenges, the Multilateral Investment Guarantee Agency (MIGA), along with the International Finance Corporation (IFC) and the International Development Association (IDA), has announced a significant initiative to boost access to electricity in the country. With only 19% electrification and less than 2% coverage in rural areas, the DRC faces substantial hurdles in infrastructure development amidst political and economic complexities.
The project, supported by a $50.3 million MIGA guarantee to Congo Energy Solutions Limited (CESL), aims to expand energy access to up to five million people by 2025. This endeavor marks the largest mini-grid initiative on the continent, comprising multiple city-scale mini-grids designed to meet growing residential and industrial demand.
CESL’s investment through Nuru SASU focuses on solar-hybrid metro-grid installations, adding 15MW initially with plans for an additional 39MW across mini- and metro-grids. This expansion is set to benefit over 28,000 households and businesses in eastern DRC, providing reliable and affordable electricity. The project also aligns with DRC’s ambitious targets to source 50% of its energy from renewables by 2030, thereby reducing carbon emissions by an estimated 9,458 tons annually.
“We are thrilled to support CESL in this transformative clean energy initiative,” stated Jessica Stiefler, Senior Underwriter at MIGA. “By de-risking investments in fragile regions like eastern DRC, MIGA aims to catalyze private sector participation and advance sustainable development goals.”
The project leverages MIGA’s guarantee to mitigate risks associated with regulatory uncertainties and operational challenges, crucial for attracting international investments. It underscores a collaborative effort within the World Bank Group to enhance DRC’s energy infrastructure and foster economic growth through renewable energy solutions.
Jonathan Shaw, CEO of Nuru, emphasized the project’s significance in bolstering DRC’s energy sector resilience. “MIGA’s support was pivotal in securing funding for this initiative,” noted Shaw. “We look forward to scaling our operations and demonstrating the viability of mini-grids as a pivotal component of DRC’s energy future.”
The initiative reflects the World Bank Group’s commitment to accelerating electrification in Africa, as articulated in the 2022 initiative aimed at achieving universal energy access by 2030. Through integrated efforts across MIGA, IFC, and IDA, the project exemplifies a unified approach to unlocking investment opportunities and advancing sustainable energy solutions across the continent.
“This project exemplifies the transformative potential of mini-grids in Africa,” remarked Sarvesh Suri, IFC’s Director for Infrastructure & Natural Resources, Africa. “By supporting pioneering ventures like Nuru, we are paving the way for broader private sector engagement in distributed generation, crucial for achieving regional energy access goals.”
The MIGA-backed initiative not only addresses immediate energy deficits but also sets a precedent for future investments in renewable energy across Africa, demonstrating the viability and scalability of decentralized energy solutions.
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