ENGIE, a French multinational electricity utility company, has officially closed a 47.5 million euro deal to fund two solar power projects in Senegal. The company has signed operation, maintenance and finance contracts with Meridiam and FONSIS have signed for two 60 megawatt (MW) solar power projects.
The total investment cost for the projects amounts to 47.5 million Euros and debt is provided by the following the European Investment Bank (EIB), the International Finance Corporation (IFC) and Proparco, a development financial institution partly owned by the French Development Agency and private shareholders.
The solar plants are part of Senegal’s Scaling Solar initiative, a project conducted jointly by Senegalese authorities and the International Finance Corporation (IFC). ENGIE was selected as preferred bidder by Senegal’s Electricity Sector Regulation Commission (CRSE) in a tender launched in October 2017.
ENGIE and Meridiam hold a 40% shareholding in the project company. FONSIS, the Senegalese sovereign fund, is a shareholder with a 20% equity stake. The projects are located in Kahone, in the Kaolack region, and in Touba-Kaël, in the Diourbel region; construction and operation of the plants will be managed and executed by ENGIE.
“In an extremely competitive context, ENGIE reaffirms its commitment to be a long term player in Senegal and to bring clean and affordable energy to the country while creating sustainable jobs. These projects are perfectly in line with the strategy of the Group to become a leader in the zero carbon transition “as a service” for our customers in Africa,” said Yoven Moorooven, CEO of ENGIE Africa.
In Senegal, ENGIE is already involved in the Senergy project, a 30 MW solar plant in the town of Santhiou Mekhé and in Ten Merina, a 29.5 MW solar photovoltaic plant in the region of Thiès, near Dakar.
Both projects are currently in operation. In 2017, ENGIE signed a partnership with ANER, Senegal’s National Renewable Energy Agency which focuses on accelerating the development of renewable energy in the country.
The Group is also implementing solar energy solutions for rural households in Côte d’Ivoire and in Senegal through partnership agreement signed with L’Agence Sénégalaise d’Electrification Rurale (ASER). ENGIE through its West African operating entities, brings innovative solutions to industrial and large tertiary customers in Senegal.
ENGIE is the largest independent electricity producer in the world, and one of the major players in natural gas and energy services.
The Group has more than 50 years of experience on the African continent, serving decentralized electricity to more than 2.5 million people.