Overview
The Mubuga Solar Power Station is an operational grid-connected solar power plant located in Gitega Province, Burundi. With an installed capacity of 7.5 MW, the facility represents a significant component of the nation's renewable energy infrastructure. The power station was constructed between January 2020 and October 2021, marking a key phase in the deployment of solar generation assets in the region. The project was developed by Gigawatt Global Coöperatief, a Netherlands-based multinational independent power producer (IPP), through its local subsidiary, Gigawatt Global Burundi SA, which serves as the primary operator of the facility.
The operational framework of the Mubuga Solar Power Station is defined by a 25-year power purchase agreement (PPA) between the operator and the off-taker, Régie de production et distribution d’eau et d’électricité (REGIDESO). REGIDESO functions as the Burundian electricity parastatal utility company, responsible for the procurement and distribution of the generated electricity. This contractual arrangement ensures the long-term commercial viability of the plant and integrates the solar output into the national grid system. The engineering, procurement, and construction (EPC) of the station was executed by Voltalia of France. In addition to the EPC role, Voltalia was awarded the operations, management, and maintenance contract, overseeing the technical performance and ongoing upkeep of the 7.5 MW installation.
Why it matters
The Mubuga Solar Power Station represents a structural shift in Burundi’s energy sector, marking the first grid-connected solar project developed by an independent power producer (IPP) in the country. Prior to this development, the Burundian electricity market was predominantly dominated by state-owned entities, with limited private sector participation in generation assets. The involvement of Gigawatt Global Burundi SA, the local subsidiary of the Netherlands-based multinational independent power producer Gigawatt Global Coöperatief, introduces a new model of private capital deployment in the national grid infrastructure. This project is not merely a technical addition to the generation mix but a strategic milestone in the liberalization and diversification of Burundi’s power supply sources.
Breaking a Three-Decade Investment Drought
The commissioning of the Mubuga plant in 2021 is widely recognized as the first major electricity generation investment in Burundi in the past 30 years. This long interval between significant generation investments highlights the historical challenges faced by the Burundian energy sector, including infrastructure deficits, financing gaps, and reliance on traditional hydroelectric sources. The construction phase, which spanned from January 2020 to October 2021, demonstrates a renewed commitment to expanding capacity through modern solar technology. By introducing a 7.5 MW solar capacity, the project contributes to reducing the country’s dependency on existing generation methods and provides a scalable model for future renewable energy integrations.
Public-Private Partnership Framework
The operational framework of the Mubuga Solar Power Station establishes a precedent for public-private partnerships in Burundi’s energy sector. The off-taker for the power station is Régie de production et distribution d’eau et d’électricité (REGIDESO), the Burundian electricity parastatal utility company. A 25-year power purchase agreement (PPA) governs the sale of electricity between Gigawatt Global Burundi SA and REGIDESO, providing long-term revenue certainty for the private operator and supply stability for the national grid. This contractual structure mitigates investment risks for private entities, encouraging further foreign direct investment in the sector.
Additionally, the role of Voltalia of France as both the engineering, procurement and construction (EPC) contractor and the holder of the operations, management and maintenance contract underscores the importance of specialized international expertise in the successful deployment of solar infrastructure in Burundi. The integration of French technical management with Dutch private capital and Burundian regulatory frameworks creates a hybrid model that may influence subsequent energy projects in the region. The Mubuga project thus serves as a critical reference point for analysts and policymakers evaluating the viability of IPP-led renewable energy developments in Central Africa.
Development history
The development of the Mubuga Solar Power Station involved a multi-year process, beginning with project inception in 2016. The initiative faced initial challenges, including aborted attempts in 2018, before construction officially commenced in January 2020. The engineering, procurement, and construction (EPC) contractor was Voltalia of France, which also secured the operations, management, and maintenance contract for the facility.
Construction and Commissioning
Construction activities spanned from January 2020 to October 2021. The project resulted in a grid-connected solar power plant with an installed capacity of 7.5 MW. The station was commissioned in 2021, marking a significant addition to Burundi’s renewable energy infrastructure. The commercial operation began in October 2021, following the completion of the construction phase.
Commercial Framework
The commercial structure of the Mubuga Solar Power Station is governed by a 25-year power purchase agreement (PPA). This agreement facilitates the sale of electricity between Gigawatt Global Burundi SA and REGIDESO. The PPA provides long-term revenue stability for the operator and ensures a consistent supply of solar energy to the national grid. The project represents a key partnership between international energy developers and local Burundian institutions, aiming to enhance energy security and diversify the country's energy mix.
What are the key stakeholders involved?
The development and operation of the Mubuga Solar Power Station involves a structured collaboration between international energy firms and Burundian state entities. The primary operator is Gigawatt Global Burundi SA, which functions as the local subsidiary of Gigawatt Global Coöperatief. Gigawatt Global Coöperatief is a multinational independent power producer (IPP) based in the Netherlands. This corporate structure allows the Dutch entity to manage the asset through its localized Burundian arm, facilitating regional integration and operational oversight. The construction phase, which spanned from January 2020 to October 2021, was executed under the direction of this operator, establishing the foundation for the plant’s grid-connected status.
Engineering and Maintenance Partners
Voltalia, a French energy company, played a dual role in the project’s lifecycle. It served as the engineering, procurement, and construction (EPC) contractor, responsible for the physical realization of the 7.5 MW facility. Beyond the initial build, Voltalia was also awarded the operations, management, and maintenance contract. This arrangement ensures that the technical expertise that designed and constructed the plant continues to oversee its day-to-day performance. The involvement of a specialized EPC firm like Voltalia is critical for maintaining efficiency in solar assets, particularly in emerging energy markets where technical continuity can impact long-term output.
Off-taker and Commercial Framework
The electricity generated by the Mubuga Solar Power Station is sold to Régie de production et distribution d’eau et d’électricité (REGIDESO). As the primary off-taker, REGIDESO secures a steady supply of solar energy to feed into the national grid, supporting Burundi’s broader energy infrastructure. The commercial relationship between the operator and the off-taker is governed by a 25-year power purchase agreement (PPA). This long-term contract between Gigawatt Global Burundi SA and REGIDESO provides financial stability for the independent power producer and price predictability for the utility. The PPA structure is a standard mechanism in solar projects, mitigating risk for both parties over the asset's operational life.
How is the project financed?
The Mubuga Solar Power Station represents a significant milestone in Burundi’s renewable energy portfolio, largely due to its complex and diversified financing structure. The project was not funded by a single entity but rather through a blend of debt and equity from international development finance institutions, private equity funds, and specialized insurance mechanisms. This financial architecture was designed to mitigate the perceived risks of investing in the Burundian power sector, thereby encouraging further private capital inflow.
Key Financial Institutions and Funds
Several major financial institutions contributed to the capitalization of the 7.5 MW facility. The Renewable Energy Power Project (REPP), a World Bank Group initiative, played a pivotal role in providing debt financing. Additionally, the Inspired Evolution II Fund, a private equity fund focused on renewable energy in emerging markets, provided crucial equity investment. The Bank of Industry (BIO), a Nigerian development finance institution with a growing presence in African energy projects, also extended debt support. Furthermore, the U.S. International Development Finance Corporation (DFC) participated in the financing package, bringing both debt and equity components to the project structure.
Insurance and Risk Mitigation
To secure these investments, the project utilized insurance products from the African Trade Insurance Agency (ATIDI). ATIDI provided political risk insurance, which is essential for protecting investors against non-commercial risks such as currency inconvertibility, expropriation, and political violence. This insurance layer was critical in making the 25-year power purchase agreement (PPA) with REGIDESO more attractive to international lenders and equity holders.
| Financial Institution / Entity | Role / Contribution |
|---|---|
| REPP (Renewable Energy Power Project) | Debt financing |
| Inspired Evolution II Fund | Equity investment |
| BIO (Bank of Industry) | Debt financing |
| DFC (U.S. International Development Finance Corporation) | Debt and equity financing |
| ATIDI (African Trade Insurance Agency) | Political risk insurance |
This multi-layered financial approach underscores the strategic importance of the Mubuga Solar Power Station. By combining public sector development finance with private equity and robust insurance coverage, the project successfully navigated the financial complexities typical of early-stage solar developments in Central Africa. The involvement of institutions like the DFC and REPP highlights the broader international commitment to expanding solar capacity in Burundi, with the Mubuga station serving as a model for future grid-connected solar projects in the region.
Operational impact and benefits
The Mubuga Solar Power Station delivers significant operational benefits to Burundi’s national energy infrastructure, directly addressing capacity constraints and local employment needs. As a grid-connected facility, the plant contributes approximately 10 percent to the country’s total installed generation capacity, marking a substantial share for a single renewable energy asset in the region. This injection of solar power into the national grid enhances supply reliability and diversifies the generation mix, reducing dependence on hydroelectric and thermal sources.
Electrical Supply and Beneficiaries
The electricity generated by the 7.5 MW facility is sold to Régie de production et distribution d’eau et d’électricité (REGIDESO), the Burundian electricity parastatal utility company, under a 25-year power purchase agreement (PPA). This long-term contractual framework ensures stable revenue for the operator, Gigawatt Global Burundi SA, while guaranteeing a consistent power supply for the national grid. The output is estimated to provide electricity to approximately 90,000 people, significantly expanding access to power in the surrounding regions. By feeding directly into REGIDESO’s distribution network, the plant supports both residential and commercial consumers, improving energy security for a notable portion of the Burundian population.
Job Creation and Local Economy
Beyond electrical output, the Mubuga Solar Power Station has generated tangible employment opportunities, structured around both the construction phase and ongoing operations. During the engineering, procurement, and construction (EPC) phase, which was executed by Voltalia of France, the project created between 190 and 300 part-time jobs for local workers. These roles supported the physical installation of solar arrays, grid connection infrastructure, and site preparation between January 2020 and October 2021.
For the long-term operational phase, Voltalia was also awarded the operations, management, and maintenance contract, ensuring continued local employment. The station sustains between 25 and 50 operational jobs, covering technical maintenance, site security, and administrative functions. These positions provide stable income for local residents, contributing to the economic development of the Mubuga area and demonstrating the socio-economic value of independent power producer (IPP) investments in Burundi.
Future expansion plans
In May 2023, Burundian President Evariste Ndayishimiye officially approved a strategic expansion plan for the Mubuga Solar Power Station, aiming to double its initial installed capacity. The approved project envisions increasing the solar farm’s output from the original 7.5 MW to a total of 15 MW. This expansion represents a significant step in the country’s efforts to diversify its energy mix and reduce reliance on hydroelectric power, which has historically dominated the national grid. The decision underscores the Burundian government’s commitment to renewable energy infrastructure as a cornerstone of economic development and energy security.
Strategic Rationale for Expansion
The approval of the 15 MW capacity target reflects broader national energy goals. By expanding the Mubuga facility, Burundi seeks to leverage the proven performance of the initial phase, which was commissioned in 2021. The existing infrastructure, operated by Gigawatt Global Burundi SA, has demonstrated the viability of large-scale solar integration into the national grid managed by Régie de production et distribution d’eau et d’électricité (REGIDESO). The expansion allows for economies of scale, potentially lowering the levelized cost of energy (LCOE) for the off-taker.
The project continues to be driven by the Netherlands-based independent power producer (IPP) Gigawatt Global Coöperatief through its local subsidiary. The original engineering, procurement, and construction (EPC) contractor, Voltalia of France, which also holds the operations, management, and maintenance contract, is positioned to play a key role in the expansion phase. The existing 25-year power purchase agreement (PPA) framework between Gigawatt Global Burundi SA and REGIDESO provides a stable financial structure that supports the capital expenditure required for the capacity increase.
Implementation and Timeline
While the presidential approval was granted in May 2023, the expansion builds upon the construction momentum established during the initial phase, which ran from January 2020 to October 2021. The doubling of capacity to 15 MW will likely involve the addition of new photovoltaic arrays and potential upgrades to the inverter and transmission infrastructure to accommodate the increased load. The project aims to maintain the operational standards set by the first phase, ensuring reliability for the Burundian electricity parastatal utility company.
The expansion is part of a broader trend of foreign direct investment in Burundi’s energy sector. Gigawatt Global’s involvement highlights the role of multinational IPPs in developing emerging solar markets in East Africa. The successful commissioning of the initial 7.5 MW plant served as a proof of concept, de-risking the investment for the subsequent 7.5 MW addition. The continued partnership with French contractor Voltalia ensures technical continuity, leveraging the same engineering and maintenance expertise that managed the initial build-out.
The projected completion of the expansion will further solidify Mubuga’s position as a key renewable energy asset in Burundi. The increased output will contribute directly to the national grid, helping to mitigate seasonal variations in hydroelectric generation. The 15 MW total capacity will enhance the resilience of the energy supply, providing a consistent baseload of solar power to REGIDESO’s consumer base. This development aligns with the country’s long-term energy strategy to increase access to electricity and support industrial growth through stable power supply.