- In South Africa, the Multilateral Investment Guarantee Agency (MIGA) is issuing an $18.9 million guarantee in favour of the independent power producer (IPP) BTE Renewables.
- The guarantee covers BTE’s equity investment in a solar photovoltaic power plant in the Northern Cape province.
The Multilateral Investment Guarantee Agency (MIGA), a part of the World Bank Group, has given an assurance of $18.9 million. This guarantee is meant to protect BTE Renewables’ investment in a solar power plant called MBP, which is in South Africa. The solar plant was mostly owned by Sonnedix Solar, a South African company, but BTE, an independent power producer, bought most of it recently.
The MBP solar power plant has been running since 2016 and was built under a program that promotes renewable energy. This guarantee lasts for 15 years and safeguards BTE Renewables against risks like restrictions on transferring ownership, government seizure, conflicts, and contract breaches. MIGA is providing this guarantee to support the shift towards cleaner energy in South Africa.
Hiroshi Matano, an important person at MIGA, mentioned that this guarantee is helping attract private investment, which will make the electricity sector stronger and show how valuable solar power plants can be in South Africa. BTE Renewables, benefiting from this guarantee, is also involved in another deal where its assets across Africa are part of the picture. The company, headed by Robert Skjodt, has just been acquired by energy giant Engie and Meridiam. BTE Renewables was previously owned by the British investment company Actis.