The African Development Bank Group has approved a €6 million concessional financing package through the Sustainable Energy Fund for Africa (SEFA) to support the completion of Burkina Faso’s Dédougou photovoltaic solar project. This project, part of the Bank’s Desert-to-Power initiative, aims to design, construct, and operate an 18-megawatt solar power plant in Dédougou, located 250 kilometers west of the capital, Ouagadougou.
As one of the first independent power producer (IPP) projects in Burkina Faso, the Dédougou solar project has secured a 25-year Power Purchase Agreement (PPA) with the national utility, SONABEL. The project faced financial challenges due to cost escalations caused by the COVID-19 pandemic. SEFA’s COVID-19 IPP Relief Programme provided crucial support, offering a €2.5 million senior concessional loan and a €3.5 million reimbursable grant to restructure financing and ensure the project’s viability.
The Dutch entrepreneurial development bank, FMO, has also provided subordinated and senior loans to the project. The solar plant is expected to contribute significantly to Burkina Faso’s energy security, diversification, and increased electrification, in line with the broader goals of the Desert-to-Power initiative, which targets generating 10 gigawatts of solar power across 11 Sahelian countries by 2030.
Dr. Daniel Schroth, Director of the Renewable Energy and Energy Efficiency Department at the African Development Bank, highlighted the importance of the project, stating that it will play a key role in electrifying the Sahel region and bolstering energy security. Abdoulaye Toure, CFO at Qair Africa, also expressed gratitude for SEFA’s support, noting that the project marks a critical step toward fulfilling Burkina Faso’s energy goals.
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