GBA Swaziland Riverbank

23 May 2019
GBA Switzerland River bank

Financial modeling for grid-scale PV generation

We supported GBA Swaziland Riverbank (GBA Swaziland), a developer proposing a 10 MW solar PV plant with on-site storage. Support was focused on providing a bankable, dynamic financial model that can be used for this project and several other South African projects in the developer’s pipeline.

The financial model enables GBA Swaziland to adjust key project-level assumptions to optimize project economics (in particular, the IRR to investors) and determine the most appropriate tariff to charge the off-taker. The tariff output of the model will be essential in advancing PPA negotiations with the Swaziland Electricity Company (SEC; the utility). The financial model will also help the developer demonstrate credibility and expedite the process of engaging potential equity investors and debt financiers. Once implemented, the project will serve as a precedent that increases the appetite to provide locally denominated long-tenor financing for IPPs within the region.

This engagement was executed through USAID’s Southern Africa Energy Program