Page 11 - AfrElec Week 01 2021

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Golomoti JCM UK Ltd

seeks MIGA cover for

solar plant in Malawi

MALAWI GOLOMOTI JCM UK Ltd has applied for MIGA’s risk exposure under the guarantees
risk coverage for its $24mn investment in the is proposed to be shared with the International
20-MW solar power generating plant in Malawi. Development Association (IDA) private sector
Golomoti JCM is seeking risk cover from window (PSW) under the MIGA guarantee
the Multilateral Investment Guarantee Agency facility (MGF).
(MIGA) for investment in Golomoti JCM Solar MIGA said in the project disclosure (dated
Corporation Ltd that will build and operate a December 2, 2021) that the PV plant in the Gol-
solar photovoltaic (PV) plant in Dedza district. omoti area will include a 5 MWh or 10 MWh
MIGA said guarantees being sought by Golo- battery energy storage system (BESS), the first
moti JCM UK will have a term of up to 20 years, such unit in Malawi.
providing coverage against the risks of transfer “The project has potential to improve [the]
restriction and breach of contract relating to the reliability of [the] electricity service in Malawi,
PV plant in the South African country. as the use of solar power during the day will con-
“JCM has applied for MIGA guarantees cov- serve hydropower resources to be used during
ering up to $24 mn of their investment into [the] peak demand periods in the evening,” said the
project, which includes equity, quasi-equity, disclosure notice.
shareholder loans and future profits,” said the Malawi currently experiences severe short-
arm of World Bank Group (WBG). ages of energy, exacerbated during the dry sea-
The board of directors of WBG is expected son when dispatch from hydro power plants
to make decision to approve the risk guarantees (HPPs) is only often 50% of capacity.
of the plant on January 14, 2022. The project, Upon completion of building and the solar
including the introduction of battery storage for PV plant commencing operations in Dedza dis-
the first time, will support resilience by diversi- trict, improved electricity availability to private
fying Malawi’s energy mix away from its current firms will contribute towards alleviating impor-
reliance on hydro. tant constraints to scaling up investment. ™

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