Ninety One-managed infrastructure fund and DFIs back solar project
The project will provide clean, reliable energy for 235,000 people in Senegal.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
The Emerging Africa & Asia Infrastructure Fund (EAAIF) and the Dutch entrepreneurial development bank, FMO, acting as co-mandated lead arrangers, alongside German development finance institution DEG, have announced a €84 million investment in two photovoltaic solar plants with battery storage systems in Senegal. The project is operated by AXIAN Energy in the region of Kolda. The overall investment volume is over €105 million, of which €84 million is debt, with €30.5 million provided by each of EAAIF and FMO, and €23 million by DEG.
Scheduled for completion in 2026, the Kolda solar farm project stands out as the largest photovoltaic plant with battery energy storage systems (BESS) project in West Africa. The photovoltaic systems will have an annual capacity of 60 MW.
The 72 MWh battery storage will help to safeguard the supply of power for up to three hours during evening peak times and increase the stability of the power grid. The critical technology supports the integration of more renewable energy capacity into the power supply, helping Senegal to achieve its ambition of reaching 40% renewable energy capacity by 2030.
AXIAN Energy CEO Benjamin Memmi said: “The Kolda solar farm project reflects our dedication to contribute to energy inclusion in Senegal and across the continent, in line with key United Nations Sustainable Development Goals. Through a fully renewable energy project, we will be able to provide clean solar energy to approximately 25,000 households in the Casamance region. Additionally, by integrating innovative battery storage technology, we are setting a new standard for sustainable energy projects in the region, enhancing grid stability and optimising the use of renewable resources. We are deeply grateful to our financial partners EAAIF, FMO and DEG for their trust and support in making this initiative possible and to the Senegalese authorities and Senelec for their vision and for supporting renewables in the energy sector."
Tidiane Doucoure, director for emerging market alternative credit at Ninety One, the fund manager of EAAIF, said: “We are delighted to back Axian Energy and drive forward the uptake of renewable energy generation and critical battery storage solutions in Senegal and the wider region. Investment in BESS technology will be crucial for assuring the continent’s transition to low carbon economies by supporting additional renewable energy capacity on the grid. This transaction is an important step towards that objective, and we are proud to lead the investment drive, reinforcing our mandate to invest in transformative infrastructure projects in Africa and Asia."
FMO board member Huib-Jan De Ruijter commented: “Through the signing of this landmark project, FMO is delighted to mark its continued commitment to Senegal’s vision for a sustainable energy sector. Reaching this signing milestone is a proud moment for FMO as it celebrates the next solar PV and battery storage project signed in Senegal, further enabling the integration of renewable energy in Senegal’s energy mix. We are also pleased to support Axian Energy, a fast-growing Africa-based renewable energy project developer and look forward to continuing our fruitful collaboration in Senegal and elsewhere on the continent. On completion, the Kolda project will provide essential grid stabilisation and ancillary services to Senegal’s utility company, Senelec, in addition to increasing the supply of much-needed clean and affordable electricity to the people and businesses of Senegal, including in the southern region of Casamance.”
DEG board member, Monika Beck added: “This financing allows us to play an important role in helping to electrify rural areas in Senegal. The project is a prime example of the transformation from generating energy from fossil fuels towards cleaner, more sustainable and more reliable energy. A stable power grid is decisive for the region’s development, creating jobs and paving the way for investments.”
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log.