One of Malawi’s first solar projects has reached financial close of US$67 million. Initial site works have begun in Nkhotakota, and construction of the first phase is targeted for completion by March 2020. Once complete, the project will add 46 MW of clean energy to the local power supply.
Developed by Phanes Group in collaboration with responsAbility Renewable Energy Holding and the Overseas Private Investment Corporation (OPIC), the project was the result of the first Power Purchase Agreement (PPA) signed with ESCOM in February 2019. This was Malawi’s first competitive tender in the power sector, and the PPA is projected to last 20 years.
Phanes Group and its partners were awarded the project in May 2017 following an international tendering process. Phanes Group will work closely with its partners throughout development of the project: responsAbility is supporting with the provision of equity financing, while also taking on the role of co-developer. OPIC is contributing debt financing, and Natsons is the local development partner.
