Salima Solar

Malawi
Starting the journey to solar power
Sector
Power/Energy
Total PIDG Commitment
USD 28.9m
Related SDG Goals
Project Overview
CompanySalima Solar
SectorPower / Energy
CountryMalawi
Total Project CostUSD 91.2m
PIDG Commitment
  • Equity USD 6.5m
  • Debt USD 15.9m
  • Technical assistance USD 6.5m
Dates of PIDG involvement
  • 2016 – present
Challenge

The Government of Malawi recognises energy as a key driver of economic growth and is working to establish the regulatory frameworks needed to attract private sector investment to the sector. The government is also keenly aware of the need to mitigate the vulnerability of its current power supply to drought and fluctuating oil prices. High solar irradiation levels suggest that solar power could offer a viable addition to Malawi’s energy mix. 

Solution

PIDG’s project development solution, InfraCo, was approached by JCM Power (JCM) – a leading developer of renewable energy projects in sub-Saharan Africa – and a local developer, Matswani, to co-develop the Salima Solar project, Malawi’s first commercial-scale solar Independent Power Producer (IPP).  

Situated 75km east of Malawi’s capital, Lilongwe, the project became operational in 2021 and now delivers up to 60MWac of power to Malawi’s national grid. 

During construction, the project engaged a professional chef from Lilongwe to train a team of local women to prepare and serve free, nutritious meals for the construction team each day from the on-site African Food Kitchen facility. 

Impact

Planet

The 60MWac plant has considerable potential for replication, promoting further development of Malawi’s solar resource. Salima is now exploring agrivoltaics to maximise the potential of the land. 

People

The project delivers agricultural training and support for local farmers affected by the project, expanding its scope to benefit the wider community. As well as catalysing new opportunities for local businesses, the project has also created new jobs in the area. 

Mobilisation

The project leveraged a total committed project investment of USD 91.2 million. By demonstrating the efficacy of government regulatory frameworks, the project is expected to increase investor confidence and so facilitate future private and DFI investment into Malawi’s renewable energy sector. 

Wider economy

By addressing the shortfall in energy supply, Salima Solar enhances the ability of wider initiatives to meet demand from newly connected consumers. 

Technical assistance

Grant funding was deployed for specialist studies, including the exploration of potential for beneficial community initiatives close to the project site. Technical assistance then supported drilling of water boreholes to supply clean water for nearby communities. A USD 6m viability gap funding grant accelerated progress to construction. 

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