Financing Secured for Solar-Plus-Storage Project in Senegal

Wedoany.com Report-Nov 14, Madagascar-based Axian Energy has obtained €84 million ($89.2 million) of financing for a solar-plus-storage project, featuring a 60 MW solar plant and a 72 MWh battery energy storage system (BESS) in southern Senegal.

The Emerging Africa and Asia Infrastructure Fund (EAAIF), Dutch entrepreneurial development bank FMO, and Deutsche Investitions- und Entwicklungsgesellschaft (DEG) have announced an investment in a solar plant with a BESS in Senegal.

The three companies are investing €84 million ($89.2 million) in debt financing, consisting of €30.5 million from both EAAIF and FMO and €23 million from DEG.

The Kolda solar farm project, valued at €105 million, will feature a 60 MW photovoltaic system with 72 MWh of battery storage. It has been billed as the largest planned solar plant with BESS in West Africa to date.

Axian Energy is developing the Kolda solar project in southern Senegal, scheduled for completion in 2026. The 60 MW system will supply power to about 235,000 people in underserved areas, with battery storage providing up to three hours of power during evening peak times.

FMO board member Huib-Jan De Ruijter said the project will stabilize the grid and offer essential services to Senegal's utility, Senelec, while boosting affordable electricity for people and businesses, particularly in the Casamance region.

Senegal has set a target of reaching 40% of renewable energy capacity by 2030. Figures from the International Renewable Energy Agency (IRENA) show that the country had 263 MW of cumulative solar capacity at the end of 2023.

Axian Energy, a subsidiary of Madagascar-headquartered Axian, has renewable energy projects in operation across seven African countries and projects in the pipeline across eight more. Its operational projects have a combined capacity of 133 MW, which it aims to extend to 1 GW by 2030.