Africa-focused WATT Renewable Corporation has secured a $15 million debt facility from the Afrigreen Debt Impact Fund to support the development and operation of hybrid solar power plants in Nigeria.
This financial arrangement aims to accelerate the company’s mission to deliver sustainable energy solutions across key sectors in the country, a local paper says.
According to Renewables Now, the funds were issued in local currency, aligning with the payment structure outlined in WATT’s power purchase agreements (PPAs).
By structuring the financing in local currency, WATT is better positioned to ensure the long-term viability of its projects without undue financial strain from exchange rate volatility.
“We are delighted to support WATT in rolling out hundreds of hybrid sites across the country. This represents another key transaction for AFRIGREEN in Nigeria.
“The combination of high energy prices, good solar irradiation, and strong demand from industrial and commercial energy users makes this market particularly attractive for companies like WATT.
“By leveraging these favorable market conditions alongside WATT’s exceptional operational performance and a well-structured financing solution, we are setting the stage for a strong and lasting business partnership.” said Alexandre Gilles, managing director of Afrigreen’s fund adviser.
More on the Funding
The hybrid solar facilities funded through this initiative will primarily cater to commercial and industrial (C&I) clients in Nigeria, focusing on sectors such as telecommunications and financial services.
These industries, often reliant on dependable energy solutions, stand to benefit from WATT’s innovative hybrid systems that combine solar power with other energy sources to enhance reliability and efficiency.
The fund specializes in providing financial solutions for C&I consumers and public utilities in Africa, supporting the deployment of both on-grid and off-grid solar power facilities.
