- Business model
ElectriFI committed to a USD 2.5 million investment in Virunga Power, a developer of small-scale rural utility hydro projects as part of a USD 5m Series A together with REPP.
Contract signature date: December 2018
Countries: Tanzania, Kenya, Burundi, Zambia and Rwanda
Total ElectriFI financing: USD 2,5 m
Environmental and Social Category: B+
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Brief description of the client and project
Virunga Power is a developer, investor and operator of renewable projects and rural distribution grids. Projects under development by Virunga Power include run-the-river small hydro of 3 to 20 MW installed capacity. Its business model incorporates local communities into the development, ownership, and operations of its projects. Virunga Power takes a “grid-as-anchor” approach to expanding electrification by both supplying power to national grids under long-term contracts as well as providing new connections and electricity supply to local household and business consumers with a focus on stimulating productive use of power.
This new financing round will allow Virunga Power to deliver on its project pipeline in Kenya, Tanzania, Burundi, and Zambia. Additionally, the company intends to bring on new senior hires with specialized expertise in building and managing small hydro and rural utility projects.
Why ElectriFi has decided to fund this project.
ElectriFI acts as a cornerstone investor supporting Virunga Power to turn into a successful run-the-river hydro project developer which actively supports long-term gains to local communities surrounding its projects.
- Number of beneficiaries
- Annual output (MWh/y)
- GHG avoidance (tCO2eq/y)