The International Finance Corporation (IFC), the financial arm of the World Bank, has finalized the financing of two grid-connected solar photovoltaic (PV) projects aggregating 60 MW in Senegal.
The finalization of financing by IFC will allow the construction of the grid-connected solar PV projects to begin shortly.
The financing package for the two solar PV projects located in Kael and Kahone includes senior loans worth €38 million from the IFC, the Finland-IFC Blended Finance for Climate Program (which helps spur private sector financing for climate change solutions in emerging markets), the European Investment Bank, and Proparco.
The grid-connected solar PV projects are being developed by Scaling Solar, a World Bank Group program that makes it easier for governments to quickly procure and develop large-scale solar PV projects with private financing. These two projects are the first by Scaling Solar in Senegal.
The solar PV projects have been sponsored by Engie, Meridiam, and Senegalese Sovereign Wealth Fund for Strategic Investments (FONSIS) and are expected to reduce greenhouse gas emissions in Senegal by 89,000 tons of carbon equivalent per year, the same as removing 17,000 cars from the road.
Senegal’s first Scaling Solar tender attracted significant international investor interest, receiving six bids for each project. The tenders resulted in tariffs of 3.80 Euro cents/kWh and 3.98 Euro cents/kWh, one of the lowest prices for electricity in West Africa.
“Scaling Solar started in Zambia with the completion of the country’s first large-scale solar project,” said Philippe Le Houérou, CEO of the IFC. “The program is delivering tremendous results and continues to expand across Africa and into new regions. We are very pleased to see the two projects in Senegal reach financial close,” added Philippe.
In May 2019, Mercom reported about a 158.7 MW wind power project that was soon to be commissioned in Senegal.