The facility is designed to assist independent power producers (IPP) developing renewable-energy projects in Africa to reach the liquidity they need in case their off-taker delays payment. Image: Presidencia de la Republica Mexicana / Flickr
The German Development Bank (KfW) and the African Trade Insurance Agency (ATI) have set up a new credit facility instrument built to support renewable energy projects in sub-Saharan Africa that targets small and mid-scale renewable energy projects (up to 50MW).
The German Federal Ministry of Economic Cooperation and Development (BMZ), through the KfW, will provide funding up to US$38.8 million for the facility – which looks to allow small-and mid-scale renewable energy projects in Africa to reach financial close by meeting liquidity requirements that lenders frequently ask for in order to fund these projects.
Günther Nooke, personal representative of the German Chancellor for Africa, BMZ, said: “The Regional Liquidity Support Facility will address a key challenge in renewable energy project finance and de-risk private sector investments. We are pleased to provide the funding to this innovative instrument underlining Germany’s commitment to the objectives of the African Renewable Energy Initiative (AREI).”
The facility is designed to assist independent power producers (IPP) developing renewable-energy projects in Africa to reach the liquidity they need in case their off-taker delays payment.
The facility will provide immediate cash collateral supported by guarantees to a commercial bank that will in turn open a standby letter of credit to the benefit of the IPP. The amount provided will enable the IPP to operate and service the debt for up to six months.
Understanding bifacial’s true potential: technology innovation and technical bankability of bifacial
The deployment of bifacial PV technology is growing rapidly. It has proven to be the most effective solution to reduce levelised energy costs (LCOE) and increase the Investment Rate of Return (IRR) of PV systems, offering substantially improved energy yield compared to the use of standard mono-facial modules. Even though the concept is not new, it has been a niche technology for many years with uncertainties in predicting performance and optimizing installations. Today, bifacial technology is becoming mainstream, with capacity available at the multi-gigawatt scale and with corresponding global deployment of project pipelines. Join this webinar, presented by Andrea Viaro, as he discusses the award-winning Swan bifacial module with transparent backsheet from DuPont, its features, benefits and differences vs. standard glass-glass modules. Jinko Solar’s new bifacial technology innovations will also be highlighted, specifically covering profitability in deployment at utility-scale PV power plants. Andrea will be joined by Dr.Lars Podlowski who will give a comprehensive introduction to all aspects of bifacial PV technology, with a special focus on benefits and risks industry buyers and investors should pay attention to.