Case Study – Mubuga
This ambitious utility-scale project in Burundi centres round the construction of a 7.5MW solar PV power plant that is expected to increase the country’s baseload generation capacity by 15%.
The development in Mubuga, in the Gitega Province, will also be the first grid-connected solar project by an IPP in Burundi, and will be the first renewable energy project to design a bankable PPA and Concession Agreement, paving the way for other renewable energy projects in the country.
Project developers Gigawatt Global Burundi SA estimate that the plant will be able to supply the electricity needs of around 87,600 people and businesses, and provide 300 part-time jobs during construction and up to 50 full-time jobs during the operational phase for cleaning, security and general maintenance.
The developers also plan to construct a scalable mini-grid scheme alongside the grid-based project for the local community, and will provide yearly support to the community to improve economic potential and living standards.
REPP is providing a development funding and construction financing, which will enhance the overall economics of the project and allow for improved access to long-term financing from debt providers and equity investors.
This project has a strong demonstration effect, especially in terms of building capacity within government to negotiate and secure PPAs with IPPs. It is expected the project will strengthen political buy-in and support for small-medium scale renewable energy projects in Burundi.