IN a landmark move for Burundi’s energy sector, the pan-African trade insurance agency, The African Trade Investment and Development Insurance (ATIDI), has announced its support for Songa Energy’s ambitious hydro project on the Ruvyironza River. With an investment of $7.7 million, this initiative marks the country’s first hydro Independent Power Producer (IPP), poised to revolutionise its electricity landscape.
‘ATIDI’s commitment to our hydro project is a significant milestone, providing essential backing that mitigates risks and accelerates our progress,”’remarked Songa Energy’s spokesperson, underscoring the pivotal role of this partnership.
ATIDI’s Political Risk Insurance will play a pivotal role in mitigating potential risks associated with the project, covering the Government of Burundi’s default following an Arbitral Award under the Project Agreements. This backing underscores ATIDI’s commitment to fostering sustainable development across the African continent.
‘We’re proud to support Songa Energy’s vision for clean energy in Burundi,’ stated Obbie Banda, ATIDI Underwriter & Ag. RLSF Coordinator. ‘Our partnership exemplifies our dedication to advancing electrification efforts and achieving SDG 7.’
Developed by Songa Energy and financed by Virunga Power, a renowned player in renewable energy, this 1.65 MW project holds immense promise for Burundi. Expected to bolster electricity generation capacity, stimulate employment opportunities, and curb greenhouse gas emissions, it aligns closely with Burundi’s developmental objectives.
Construction of the Upper Ruvyironza project commenced shortly after a groundbreaking ceremony in May 2023, with commercial operations slated for completion by the end of 2024.
‘We see significant value in ATIDI’s support for our investment,’ stated Brian Kelly, Founder & CEO of Virunga Power. ‘This partnership underscores our commitment to delivering reliable, clean energy solutions for Burundi’s populace.’
Under a 25-year Power Purchase Agreement (PPA), electricity generated by the project will be exclusively sold to Burundi’s national utility, la Régie de Production et de Distribution de l’Eau et de l’Electricité (REGIDESO). This arrangement ensures sustained access to reliable, clean energy for the populace.
The Upper Ruvyironza project represents one facet of Songa Energy and Virunga Power’s joint efforts in Burundi’s energy landscape. With plans for additional hydro power plants totalling 10.65 MW, this collaboration underscores a concerted push towards renewable energy integration within the national grid.
Notably, ATIDI’s support for this project follows Gridworks’ announcement of a $50 million investment in Virunga Power’s initiatives in December 2022. Such partnerships underscore the growing momentum towards sustainable energy development in Africa, heralding a brighter future for the continent’s electrification projects.