Virunga Power

Period

2018

Country

Burundi, Kenya, Rwanda, Tanzania, Zambia

Sector

Renewable energy

Financial facility

ElectriFI

ElectriFI committed to a USD 2.5 million investment in Virunga Power, a developer of small-scale rural utility hydro projects as part of a USD 5m Series A together with REPP.

Project overview

EDFI ElectriFI committed USD 2.5 million in Virunga Power financing round allow the company to deliver on its project pipeline in Kenya, Tanzania, Burundi, and Zambia. Additionally, the Virunga Power intends to bring on new senior hires with specialised expertise in building and managing small hydro and rural utility projects.

Virunga Power is a developer, investor and operator of renewable projects and rural distribution grids. Projects under development by Virunga Power include run-the-river small hydro of 3 to 20 MW installed capacity. Its business model incorporates local communities into the development, ownership, and operations of its projects. Virunga Power takes a “grid-as-anchor” approach to expanding electrification by both supplying power to national grids under long-term contracts as well as providing new connections and electricity supply to local household and business consumers with a focus on stimulating productive use of power.

Funding objective

This new financing round will allow Virunga Power to deliver on its project pipeline in Kenya, Tanzania, Burundi, and Zambia. Additionally, the company intends to bring on new senior hires with specialised expertise in building and managing small hydro and
rural utility projects.

Investment rationale

EDFI ElectriFI acts as a cornerstone investor supporting Virunga Power to turn into a successful run-the-river hydro project developer which actively supports long-term gains to local communities surrounding its
projects.