MIGA backs solar-plus-storage project in Malawi with USD 24m

First solar panels for Salima solar park. Source: Twitter, @@InfracoAfrica

July 25 (Renewables Now) - The Multilateral Investment Guarantee Agency (MIGA) has issued 20-year guarantees of USD 24 million (EUR 23.6m) to JCM Golomoti UK Ltd for equity and shareholder loan investments for the development, construction and operation of a 20-MW solar-plus-storage plant in Malawi.

The guarantees provided to Golomoti JCM Solar Corp Ltd protect the independent power producer (IPP) against the risks of transfer restriction and breach of contract. They were issued in relation to a solar plant with a 5-MW/10-MWh battery storage system.

“MIGA is pleased to support ongoing electrification in Malawi and the first deployment of solar battery storage technology in the country,” said Hiroshi Matano, Executive Vice President of MIGA.

In 2019, JCM also obtained MIGA guarantees for its investment in the 60-MW Salima solar project in Malawi.

The Southeast African country is said to have one of the lowest electricity access rates in the world – just 11.2% in 2019 – and is looking to reach 30% by 2030. It currently relies mostly on hydropower and manages peak demand with expensive and polluting diesel generators.

(USD 1 = EUR 0.981)

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