- Renewable energy developer, GreenYellow, has obtained a USD 5.2 million guarantee from the Multilateral Investment Guarantee Agency (MIGA) to support the construction, operation and maintenance of a 30 MWp solar project in Burkina Faso.
The Paris-based company said the guarantee will cover its equity and quasi equity investments in Société de production d’énergie solaire de Ouagadougou SAS (SPES Ouagadougou) for a period of up to 20 years. The electricity will be sold to Société Nationale d’Electricite du Burkina (Sonabel), the country’s state-owned utility, under a 25-year take-or-pay PPA. The PPA will be backstopped by a Public Private Partnership Agreement from the Government of Burkina Faso through the Ministry of Energy and the Ministry of Finance.
Hiroshi Matano, the executive vice president of MIGA, claimed that the facility will help to address Burkina Faso’s power deficit and support its transition to renewable energy. ”MIGA’s support sends a clear signal to the private sector of the possibilities in the Sahel region,” he said.
The board of directors of MIGA, a member of the World Bank Group, has approved the guarantee and three other 102 MWp PV projects – Burkina Faso’s first round of independent solar power producers.
Otmane Hajji, the president of GreenYellow, said the company aims to use its decentralized model to help Burkina Faso deploy more renewable energy. “Political risk insurance from MIGA demonstrates the group’s ability to finance its growth ambitions in promising markets like Burkina Faso,” he said.
Author: Bryan Groenendaal