News Flash
- GuarantCo will issue guarantees directly to the Independent Power Projects (IPPs) from whom Africa GreenCo will buy power whilst backing the company’s payment obligations to such IPPs.
- This innovative guarantee structure and GuarantCo’s high credit ratings (Moody’s A1 and Fitch AA-) will provide IPPs and their lenders with the comfort to enter into contracts and build renewable power projects.
The USD 27 million guarantee is expected to enable up to USD 270 million of Private Sector Investment in IPPs which will sell energy to private off-takers and on the South Africa Power Pool (SAPP) market. Through the transaction, between 200MW and 300MW of renewable energy is expected to be brought online, providing improved electricity access to grid-tied businesses and end users (Sustainable Development Goal 7.1) whilst enabling renewable energy to avoid and reduce GHG emissions (SDG 13).
This is PIDG’s second transaction with Africa GreenCo. Having leveraged a PIDG Technical Assistance grant in October 2020 to help operationalise GreenCo Power Services in Lusaka, InfraCo Africa invested USD 5.5 million in May 2022 to scale GreenCo’s offering as Zambia’s first renewable energy buyer and services provider.
Author: Bryan Groenendaal
