AfricaNews

ATIDI Backs Songa Energy’s 1.65MW Hydro Project in Burundi

The African Trade Insurance Agency, ATIDI, says it has supported Songa Energy’s 1.65 MW run-of-the-river hydro project on the Ruvyironza River in Burundi.

The $7.7 million project, which will be the first hydro Independent Power Producer in the country, would benefit from ATIDI’s Political Risk Insurance cover, per the Agency.

“It’s great to be in a position to celebrate this milestone as we continue to support electrification efforts, not only in Burundi but across the African continent,” ATIDI Underwriter and Acting RLSF Coordinator Obbie Banda said.

Only 15% of Burundi’s population have access to electricity. The country, however, has a high production production potential from hydroelectric power, which remains largely underexploited.

Located on the Ruvyironza River, the Upper Ruvyironza project seeks to tap in the renewable energy resource.

The project, launched late last year, is expected to reach commercial operations by the end of 2024.

“We are excited by the partnership with ATIDI and see significant value in their support for our Songa Energy investment in Burundi,” Virunga Power Founder & CEO Brian Kelly said.

“We look forward to a long-term ‘win-win’ partnership with the Government of Burundi to ensure reliable, clean energy is available for the population,” the CEO added.

The electricity generated by the project will be sold exclusively to the Burundian national power and water utility or REGIDESO, under the terms of a 25-year Power Purchase Agreement (PPA).

It will be delivered to the national grid via a new 2.4km transmission line that will be constructed as part of the project.

The Upper Ruvyironza project has been developed by Songa Energy and is being financed by Virunga Power, which itself is a developer, investor, and operator of renewable power projects and rural distribution grids.

The project is one of two hydro power plants totaling 10.65 MW being developed jointly by Songa Energy and Virunga Power within Burundi.