Malawian solar project has raised $67 million investment
- Dubai’s Phanes Group together with its partner companies won the tender back in May of 2017, having beaten competitors from different countries. In total, 21 developers were bidding for the project.
One of the 1st solar ventures in Malawi has raised 67 million USD. The construction of the facility has started in Nkhotakota. Phase I is scheduled to be completed before spring of the coming year.
The Nkhotakota project is a joint venture of Phanes Group, OPIC and rAREH. Two and a half years ago, the developers won the tender among 21 bidding firms from all over the globe. The roles of Phanes’ partners in the project development are distributed as follows: Overseas will be providing debt financing, while rAREH will be responsible for co-development and equity financing. There will be one more company involved in the venture locally – Natsons.
As of today, the installed power generating capacity of the country doesn’t exceed 362 megawatt. Electricity is accessible to no more than 15 percent of Malawians. The new 46-megawatt solar project is being developed within the framework of Malawi’s target to enhance the local power infrastructure with solar electricity and supply power to 30 percent of locals over the decade.
At present, 95 percent of local electricity is generated by hydroelectric stations, which results in high drought vulnerability. This is especially crucial taking into account dangerous Lake Malawi’s water level dropping. The new facility will make the country less dependent on water power and provide reliable power supply during daylight hours.
