The African Development Bank (AfDB) has granted €6 million in concessional financing through the Sustainable Energy Fund for Africa (SEFA) to advance Burkina Faso’s Dédougou solar project. This initiative, under the Bank’s Desert-to-Power program, aims to develop an 18-megawatt solar power plant in Dédougou, about 250 kilometers west of Ouagadougou, the country’s capital.
As one of Burkina Faso’s pioneering independent power producer (IPP) projects, the Dédougou solar project secured a 25-year Power Purchase Agreement (PPA) with the national electricity provider, SONABEL. Financial difficulties, primarily driven by COVID-19-related cost escalations, threatened the project. SEFA’s COVID-19 IPP Relief Programme intervened with a €2.5 million senior concessional loan and a €3.5 million reimbursable grant, helping to restructure financing and keep the project on track.
In addition to SEFA’s contribution, the Dutch entrepreneurial development bank, FMO, provided subordinated and senior loans. The solar plant is expected to enhance Burkina Faso’s energy security, diversify its energy sources, and boost electrification efforts. This aligns with the broader goals of the Desert-to-Power initiative, which aims to generate 10 gigawatts of solar energy across 11 Sahel countries by 2030.Dr.
Daniel Schroth, AfDB’s Director of Renewable Energy and Energy Efficiency, emphasized the project’s significance for improving energy access in the Sahel region. Abdoulaye Toure, CFO at Qair Africa, praised SEFA’s climate financial support, noting that this project is a critical step toward achieving Burkina Faso’s renewable energy objectives.
Add a Comment