WATT Renewable Corporation, an independently owned provider of hybrid solar solutions, has secured $15 million in debt facility from the AFRIGREEN Debt Impact Fund.
WATT said the debt facility will be used to finance hybrid solar power plants to serve commercial and industrial clients in Nigeria, particularly in the telecommunication and financial services sectors.
For this transaction, AFRIGREEN is offering a local currency facility that matches the payment structure of the power purchase agreements.
This strategy mitigates the currency risk for WATT in the event of devaluation of the Nigerian Naira.
WATT operates in the burgeoning renewable energy market in Nigeria with other key players like Solar Depot Nigeria, Lumos Nigeria, Rubitec Solar, Green Village Electricity (GVE) Projects, Daystar Power & Solynta Energy, among others, that are making significant strides to solve the country’s energy challenge.
Rollout plans
Enabled by the new funding, the company said its rollout plan includes deploying hundreds of hybrid solar power sites nationwide to meet the growing energy demands of commercial and industrial clients.
- The company said the strategic expansion aligns with its vision to revolutionize energy access across Africa, enabling sustainable development and reducing reliance on fossil fuels.
- By integrating solar hybrid solutions, WATT aims to significantly reduce diesel consumption and CO2 emissions, enabling Nigerian companies to achieve substantial energy cost savings while promoting environmental sustainability.
Demand for renewable energy in Nigeria
Commenting on the funding, Managing Director of AFRIGREEN’s fund advisor, Alexandre Gilles, said:
“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.”
Also speaking, the Managing Director of WATT Renewable Corporation, Oluwole Eweje, said partnering AFREGREEN would help to expand reliable and sustainable energy solutions across Africa.
“With this support, it enables us to accelerate our shared mission of providing hybrid solar power to businesses, reducing carbon emissions, and supporting economic growth while enhancing energy security for our clients,” he said.
What you should know
The AFRIGREEN Sebt Impact Fund focused on sustainable energy solutions is backed by prominent institutions including the European Investment Bank (EIB), the International Finance Corporation (IFC), BIO, FMO, Proparco, Société Générale, and BNP Paribas.
The Fund offers financing solutions for commercial and industrial consumers and public utilities in Africa, enabling their installation of on- and off-grid solar power plants to help reduce their energy bill as well as their dependency on fossil fuel.