Buffalo Energy, Zambia
A convertible note from REPP is enabling British renewable energy developer Buffalo Energy Ltd to progress a diverse pipeline of projects in Zambia with a combined generating capacity of up to 100MW.
Buffalo Energy Ltd was set up in 2016 to develop small-scale projects to provide low-cost electricity to the southern African country’s rural communities, most of which currently lack reliable access to modern clean energy and instead have to rely on kerosene and other expensive and polluting fuels for their energy needs.
In 2017, the company raised seed capital to originate several opportunities and initiate development on a six-project portfolio, which includes grid-connected, captive and off-grid schemes employing large-scale solar PV, biomass, wind and mini-grid technologies.
The convertible note means Buffalo Energy can now fund a further 24 months of operations, and cover the project development expenses to bring projects to financial close.
Once built, the six projects will contribute significantly to both Zambia’s energy diversification strategy, and its target of 51% energy access in rural areas by 2030. They will also support its conditional NDC target to reduce greenhouse gas emissions by 47% by the same date against a base year of 2010.
* Estimate of achieved capacity during REPP’s support
Contracted date: 23 October 2018
Lending type: Corporate convertible loan
REPP funding: Undisclosed
With REPP support, Buffalo Energy has a fantastic platform from which to accelerate our projects and build out our portfolio. This investment will enable the company to advance the ongoing diversification and development of the Zambian energy sector, and expand our regional impact.- Will Dryer, Director, Buffalo Energy Ltd