DRC: Investors back solar company
Nuru, the company behind the Democratic Republic of the Congo’s (DRC) first solar PV metro grid, is on track to build 13.7MWp of isolated solar-hybrid grids by mid-2024 after securing an initial $1.5 million from investors in a convertible note round ahead of the close of its Series B funding round.
Renewable Energy Performance Platform (REPP), Proparco and E3 Capital have each invested $500,000 in Nuru, bridging a financing gap to bolster the company’s $25 million Series B equity fundraise. The residual funds will be invested by a consortium of international investors at financial close.
REPP is funded by the UK’s Foreign, Commonwealth and Development Office (FCDO) and managed by Camco. Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group), and E3 Capital is an investor in low-carbon early-stage companies.
According to the World Bank, approximately 19% of the DRC’s population has access to electricity, making the central African country one of the least electrified in the world. The DRC’s grid power generation comes predominantly from hydropower plants, which are coming under mounting pressure due to a lack of maintenance and the increased incidence of drought due to climate change.
To date, Nuru has installed 1.7MWp of operating capacity, providing commercial and industrial (C&I), retail and residential customers in large off-grid towns with reliable, affordable and clean electricity via solar PV installations (with battery storage and diesel back up) and isolated distribution networks.
In addition to the three late-stage development projects, Nuru has a further 35MWp in its current active pipeline, which it expects to be fully commissioned within the next three years.
Ben Hugues, who heads REPP at Camco said, “Nuru has the potential to deliver truly widescale and transformational impact in one of the world’s poorest countries. REPP’s investment alongside Proparco and E3 Capital will not just lead to greater emissions reductions, but also higher levels of economic activity and improved living standards for hundreds of thousands of people through clean, reliable and affordable energy access. At the same time, it will demonstrate DRC’s improving investment conditions and give confidence to other funders to invest.”
Jonathan Shaw, co-founder and CEO of Nuru said, “Nuru is thrilled to have partners like REPP, Proparco, and E3 Capital empowering us to deliver life-changing energy access in an extremely challenging environment. REPP, Proparco and E3 Capital have demonstrated tangible commitments to helping Nuru achieve our mission of delivering reliable, affordable, renewable energy to five million people in the DR Congo.”