Burkina Faso is set to receive a commitment of €6 million concessional finance package from the Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB). This significant investment is earmarked for the development of the 18 MW Dédougou Solar Power Plant, a project poised to increase the nation’s energy generation capacity and accelerate its journey towards a sustainable energy future.
A statement from The AfDB, on Monday stated that formalization of this commitment took place earlier during a pivotal signing ceremony in Paris. The gathering brought together key stakeholders, including representatives from the African Development Bank, the Dutch Entrepreneurial Development Bank (FMO), project developer Qair, and legal advisors A&O Shearman and Trinity.
SEFA’s financial contribution comprises a €2.5 million senior concessional loan and a €3.5 million reimbursable grant, complemented by crucial subordinated and senior loans from FMO.
This strategic investment aligns with the African Development Bank-led Desert-to-Power initiative, a program aiming to transform the vast Sahel region into the world’s largest solar power zone.
AfDB emphasized that the Dédougou project is not merely a component of this initiative; it holds a prominent position as a priority project within Burkina Faso’s national Desert-to-Power roadmap. It stands as one of the country’s pioneering independent power producers (IPPs), operating under a robust 25-year Power Purchase Agreement with the national utility.
Dr. Daniel Schroth, the Bank’s Director for Renewable Energy and Energy Efficiency, underscored the project’s significance, stating, “The Dédougou Solar PV project marks a significant milestone for Burkina Faso and the broader Sahel region.” The catalytic support from SEFA was instrumental in unlocking this private sector-led project.” He said.
Once operational, the Dédougou Solar Power Plant promises an extraordinary positive impact. It will be instrumental in diversifying Burkina Faso’s energy mix, reducing the nation’s electricity costs, and significantly boosting access to reliable and affordable electricity.
Moreover, the project is built on a strong foundation of sustainability, incorporating a comprehensive Environmental and Social Management System to ensure responsible operations and mitigate any potential environmental and social risks.
SEFA
SEFA is a multi-donor Special Fund dedicated to providing catalytic finance that unlocks private sector investments in renewable energy and energy efficiency. It offers technical assistance and concessional finance instruments to remove market barriers, build a robust pipeline of projects, and enhance the risk-return profile of individual investments, all with the overarching goal of contributing to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa.
Qair
Independent renewable energy company with a comprehensive approach, encompassing the development, financing, building, and operation of solar, onshore and offshore wind, hydroelectric, tidal energy, waste-to-energy, battery storage, and green hydrogen production. With 1.7 GW of capacity in operation or construction, the group’s 780 employees are actively developing a robust portfolio pipeline of 34 GW across 20 countries in Europe, Latin America, and Africa.
