MIGA backs Nuru’s Eastern DRC solar projects with $50.3 million guarantee

The eastern region of the Democratic Republic of Congo (DRC) is poised to experience a substantial improvement in the availability of electricity due to an ambitious initiative undertaken by Congo Energy Solutions, operating under the brand name Nuru.

The World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) has recently made a significant commitment by offering a guarantee amounting to $50.3 million. This financial assurance is directed towards supporting Nuru’s innovative project, which focuses on the establishment of solar-powered metropolitan electricity grids that promise to transform the energy landscape of the region.

This initiative builds upon the existing momentum generated by the International Finance Corporation (IFC), which has previously extended its support through participation in a substantial $40 million Series B funding round for Nuru. Adding to this collaborative financial effort, Proparco, which operates under the French Development Agency (AFD), has also contributed to the project.

Nuru, which has its operational base in the city of Goma, situated in the North Kivu province, has set forth an ambitious goal. The company plans to install a total of 15 megawatts (MW) of solar capacity, which will be distributed across three key cities: Goma, Kindu, and Bunia. Of these, Bunia is slated to host the most extensive network within the scope of this project.

The funding pool for this venture is further bolstered by contributions from the Renewable Energy Performance Platform (REPP), the Global Energy for People and Planet Alliance (GEAPP), E3 Capital, and the GAIA Impact Fund. In a noteworthy development, Voltalia, a prominent French renewable energy company, along with philanthropic entities such as the Schmidt Family Foundation and the Joseph Family Foundation, have also joined the ranks of investors in the recent Series B funding round.

The financial infusion from these diverse sources is targeted at electrifying approximately 28,000 households and businesses throughout the eastern DRC, a region that has long been grappling with the challenges of energy scarcity. Despite the ongoing instability in the region, particularly the unrest associated with the M23 rebellion, Nuru’s management maintains a stance of confidence regarding the resilience of their electricity infrastructure projects.

The role of MIGA’s guarantee is particularly crucial in this context, as it serves to alleviate the apprehensions of investors who might otherwise be hesitant to commit resources to such a volatile environment. MIGA has introduced an innovative approach to this project by offering partial expropriation coverage, which ensures that each mini-grid within the project is individually protected, as highlighted by the World Bank Group agency.

The project stands as a beacon of progress for the expansion of clean energy access in the eastern DRC. Should it prove successful, it has the potential to act as a model for future endeavors in regions that are similarly affected by conflict, thereby underscoring the feasibility of implementing renewable energy solutions in even the most challenging of circumstances.