- The Multilateral Investment Guarantee Agency (MIGA) is issuing a $5.67 million guarantee to cover the risks associated with Kube Energy’s investments in Somalia.
- The company is involved in constructing a 2.8 MW hybrid solar power plant in Baidoa.
A project in Somalia is funded by the Multilateral Investment Guarantee Agency (MIGA). Kube Energy has received a $5.67 million guarantee from the World Bank Group subsidiary. The company, which is based in Oslo, Norway, has teamed up with investor CrossBoundary Energy to introduce Kube Energy Somalia. It is an organization with a specific goal that wants to build a 2.8 MW solar power facility.
A 4.8 MWh battery storage system will be attached to the plant to ensure electricity generation after dusk or during severe weather. The village of Baidoa in Somalia’s Bay province will house the hybrid solar power plant. A power purchase agreement (PPA) has been made between Kube Energy Somalia and the UN mission there.
For a period of up to 15 years, the Miga guarantee is meant to protect Kube Energy’s capital and debt investments in Kube Energy Somalia from the dangers of expropriation, war, and civil disturbance. Through a first loss mechanism, which will disperse risk and increase MIGA’s reach in vulnerable contexts. For the record, the RECTF is a multi-donor trust fund that was created in 2022 and is run by MIGA with assistance from the Japanese government and the Norwegian Agency for Development Cooperation (NORAD).
With the support of the local authorities, Kube plans to distribute some of the electricity produced to local people. However, the Baidoa solar power plant will be handed over to the Somali government after 15 years of commercial operation. According to the World Bank, 90% of the electricity generated in Somalia is supplied by isolated diesel-powered mini-grids.