IFC, the private sector arm of the World Bank Group, has signed a mandate with Voltalia, an international renewable energy player, to arrange financing for the Dwangwa project in Malawi.
Solar project in Malawi: a key step towards access to electricity
The project will combine a 55 megawatt solar power plant with a 10 megawatt battery storage unit and will have a particularly large positive impact on local development, representing nearly 10% of the installed capacity in the country. The electricity will be sold through a long-term sales contract with the state-owned Electricity Supply Corporation of Malawi Ltd.
The signing took place during a visit by IFC Managing Director Makhtar Diop to Voltalia’s headquarters in Paris in February 2023. The meeting was an opportunity to review IFC and Voltalia’s joint projects and to discuss the prospects for increased collaboration around renewable energy development in the countries where IFC operates.
This news is particularly significant for Malawi, where less than 15% of the population is connected to the power grid. The innovative project will not only improve the local economy, but also contribute to the global environment by providing clean energy.
Mandate signed between IFC and Voltalia: a further step towards the fight against climate change
IFC is the world’s largest private sector-focused development institution in emerging markets, and in fiscal year 2022 it committed a record $32.8 billion to private companies and financial institutions in developing countries. This funding will harness the power of the private sector to end extreme poverty and stimulate shared prosperity as economies face the impacts of cumulative global crises.
Voltalia is an international player in the renewable energy sector, producing and selling electricity generated from wind turbines, solar panels, hydraulic installations, biomass and storage facilities that it owns and operates. The company has 2.6 GW of generating capacity in operation and under construction and a portfolio of projects under development representing a total capacity of 14.2 GW. Voltalia is also a service provider and supports its investor clients in renewable energy projects at all phases, from design to operation and maintenance.
Thus, the mandate signed between IFC and Voltalia is a significant step towards the development of renewable energy in Malawi, providing much needed electricity to the local population and contributing to global efforts to combat climate change.
