The two Senegalese solar plants with a total capacity of 80MW will generate enough power sufficient for 600,000 people
Image: Officials of EIB, IFC and Proparco at the signing. Photo: Courtesy of European Investment Bank.
The European Investment Bank (EIB), the International Finance Corporation (IFC) and Proparco have agreed to offer financing for two solar plants, with a total capacity of 80MW, located in Senegal.
As part of the re-financing programme, EIB, IFC and Proparco will provide a total of €38m (£34.6m) for the construction and operation of two solar plants. The solar plants will be built in rural regions of Kahone and Touba in central Senegal.
The funding will be provided to the sponsors Meridiam and Engie and the Senegalese sovereign fund Fonsis. The two solar projects are the first two achievements in Senegal of the World Bank’s Scaling Solar programme, whose aim is to promote investments in renewable energy across emerging markets.
EIB vice-president Ambroise Fayolle said: “The European Investment Bank is the largest public-sector lender for climate action. It is supporting the internationalisation of renewable energies and is happy to support this global project in Senegal with Proparco and IFC.
“New investment in renewable energies is key to economic development and social progress in Africa, and with this ambitious project, Senegal is demonstrating the advantages of investing in clean energies and the impact on electricity access and costs.”
When completed, the solar plants will generate enough electricity to support nearly 600,000 people, while helping to avoid nearly 2.2 million tons of CO2 emissions during their lifetime.
The solar plants can create up to 2,300 direct jobs
The solar plants will also contribute towards increasing the share of renewable energy in Senegal’s energy mix. The construction phase is expected to create more than 2,300 direct and indirect local jobs.
IFC West and Central Africa regional director Aliou Maiga said: “With the signing of the funding, Senegal is once again demonstrating that the Scaling Solar approach provides record prices by creating a competitive tender and attracting world-leading players.
“We are pleased that many other countries, in Africa and beyond, are following this path and are adopting this model to accelerate the development of solar energy.”
Proparco CEO Gregory Clemente said: “Thanks to the determination of the Senegalese government, the commitment of donors such as Proparco and the know-how of the two French renewable energy specialists Meridiam and Engie, we are once again demonstrating the great potential of solar energy to improve Senegalese access to clean, renewable and affordable energy.”
In 2016, Proparco provided financing to build the Senergy and Ten Merina solar power plants in Senegal.