JCM Matswani Solar Corp Limited has signed a 20-year power purchase agreement (PPA) with the Electricity Supply Corporation of Malawi Limited (ESCOM) for a 60 MW solar PV project.
According to InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), a development fund managed by a subsidiary of JCM Power and Matswani Capital, the PPA was signed on September 13.
The 60 MW plant – expected to come online in 2019 – will become one the biggest solar projects in Malawi when complete.
To date, InfraCo Africa has reportedly leveraged US$320,000 worth of grant funding for the project, in which the company has committed a total of $2.6 million. Financial close is set for the fourth quarter of this year.
“The PPA signing marks a key step in the collaboration between ourselves, InfraCo Africa, ESCOM and the Government of Malawi on the Salima Solar project and will enable us to secure financing for the construction phase,” said JCM Power’s Head of Africa, Justin Woodward.
He added, “Malawi has significant solar potential and we are pleased to be a part of a project which is supporting efforts to diversify the country’s energy mix and increase access to clean, reliable power for homes and businesses.”
In February, JCM Matswani issued a Request for Expression of Interest, to select EPC contractors. At the time, it said the project could have a power range of between 20 MW and 40 MW. It was selected in a public tender held by Malawi’s government between December 2016 and May 2017.
More recently, South Africa’s Council for Scientific and Industrial Research (CSIR) launched a tender to seek consultants for the definition of a technology roadmap for solar development in Malawi.
Source PV Magazine