Rédaction Africa Links 24 with Burundi Times
Published on 2024-03-28 11:29:36
The African Trade Investment and Development Insurance (ATIDI) has supported Songa Energy’s USD 7.7 million run-of-the-river hydro project on the Ruvyironza River in Burundi. The 1.65 MW project is set to be the first hydro Independent Power Producer (IPP) in the country and will benefit from ATIDI’s Political Risk Insurance. This insurance will cover the risk of default by the Government of Burundi following an Arbitral Award under the Project Agreements. The project is expected to increase the country’s electricity generation capacity, create employment opportunities, and reduce greenhouse gas emissions.
Developed by Songa Energy and financed by Virunga Power, a developer, investor, and operator of renewable power projects and rural distribution grids, the project aims to contribute to the electrification efforts in Burundi and across the African continent. ATIDI Underwriter & Ag. RLSF Coordinator Obbie Banda expressed excitement about supporting Songa Energy’s project and working towards the attainment of SDG 7 – access to energy for all.
Situated on the Ruvyironza River, the Songa Energy project is the 2nd renewable energy IPP to connect to the national grid in Burundi. The country’s electricity sector has a high potential for increasing production from hydroelectric power, which remains largely underexploited. With less than 15% of the population having access to electricity, Burundi needs to enhance its electricity production and supply to facilitate economic development.
Construction of the project began in May 2023, with commercial operations expected to commence by the end of 2024. Virunga Power Founder & CEO Brian Kelly emphasized the value of ATIDI’s support for Songa Energy’s investment in Burundi and expressed optimism about a long-term partnership with the Government of Burundi to ensure reliable, clean energy is available for the population.
The electricity generated by the project will be sold exclusively to the Burundian national power and water utility, REGIDESO, under a 25-year Power Purchase Agreement (PPA). A new 2.4km transmission line will be constructed to deliver power from the project to the national grid. The Upper Ruvyironza project is one of two hydro power plants totaling 10.65 MW being developed jointly by Songa Energy and Virunga Power in Burundi.
In December 2022, Gridworks announced a USD 50 million investment to fund new projects by Virunga Power. This investment underscores the importance of renewable energy projects in Africa’s electricity networks. Overall, the collaboration between Songa Energy, Virunga Power, ATIDI, and other partners is driving progress towards sustainable energy development in Burundi and beyond.
Read the original article on Burundi Times
