EAAIF, FMO and DEG provide EUR 84 million to AXIAN Energy to finance a 60MW solar energy and 72MWh energy storage system in Senegal
- The project will provide clean, reliable energy for 235,000 people in Senegal.
- Largest photovoltaic with added battery energy storage systems (BESS) project in
West Africa, accelerating the uptake of critical battery technology in the region. - The investment supports Senegal’s drive to reach 40% of renewable energy capacity
by 2030.
London – 13 November 2024 – The Emerging Africa & Asia Infrastructure Fund (EAAIF) and
the Dutch entrepreneurial development bank (FMO) acting as Co-Mandated Lead Arrangers,
alongside Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), have announced
today a EUR 84 million investment in two photovoltaic solar plants with battery storage
systems operated by AXIAN Energy in the southern Senegalese region of Kolda. The
commitment will provide clean energy to local communities and businesses, driving forward
access to electricity and economic growth in the underserved Casamance region of the
country. The overall investment volume is over EUR 105 million, of which, EUR 84 million of
Debt, with EUR 30.5 million provided by each of EAAIF and FMO, and EUR 23 million by
DEG.
Scheduled for completion in 2026, the Kolda solar farm project stands out as the largest
photovoltaic plant with BESS project in West Africa. This ambitious project will set a
benchmark for the region by combining large-scale solar energy production with cutting-edge
battery storage technology. The photovoltaic systems will have an annual capacity of 60 MW
and will provide green electricity to an estimated 235,000 people.
The 72 MWh battery storage will help to safeguard the supply of power for up to three hours
during evening peak times and increase the stability of the power grid. The critical technology
supports the integration of more renewable energy capacity into the power supply, helping
Senegal to achieve its ambition of reaching 40% renewable energy capacity by 2030.
On the occasion of the signature of the financing agreements, AXIAN Energy CEO
Benjamin Memmi said: “The Kolda solar farm project reflects our dedication to contribute to
energy inclusion in Senegal and across the continent, in line with key United Nations
Sustainable Development Goals. Through a fully renewable energy project, we will be able to
provide clean solar energy to approximately 25,000 households in the Casamance region.
Additionally, by integrating innovative battery storage technology, we are setting a new
standard for sustainable energy projects in the region, enhancing grid stability and optimizing
the use of renewable resources. We are deeply grateful to our financial partners EAAIF,
FMO and DEG for their trust and support in making this initiative possible and to the
Senegalese Authorities and Senelec for their vision and for supporting renewables in the
energy sector.”
Tidiane Doucoure, Director, Emerging Market Alternative Credit at Ninety One Group,
the Fund Manager of The Emerging Africa & Asia Infrastructure Fund (EAAIF), a
Private Infrastructure Development Group (PIDG) company, said: “We are delighted to
back Axian Energy and drive forward the uptake of renewable energy generation and critical
battery storage solutions in Senegal and the wider region. Investment in BESS technology
will be crucial for assuring the continent’s transition to low carbon economies by supporting
additional renewable energy capacity on the grid. This transaction is an important step
towards that objective, and we are proud to lead the investment drive, reinforcing our
mandate to invest in transformative infrastructure projects in Africa and Asia.”
FMO Management Board member Huib-Jan De Ruijter said: “Through the signing of this
landmark project, FMO is delighted to mark its continued commitment to Senegal’s vision for
a sustainable energy sector. Reaching this signing milestone is a proud moment for FMO as
it celebrates the next solar PV and battery storage project signed in Senegal, further enabling
the integration of renewable energy in Senegal’s energy mix. We are also pleased to support
Axian Energy, a fast-growing Africa-based renewable energy project developer and look
forward to continuing our fruitful collaboration in Senegal and elsewhere on the continent. On
completion, the Kolda project will provide essential grid stabilization and ancillary services to
Senegal’s utility company, Senelec, in addition to increasing the supply of much-needed
clean and affordable electricity to the people and businesses of Senegal, including in the
southern region of Casamance”.
DEG Management Board member Monika Beck said: “This financing allows us to play an
important role in helping to electrify rural areas in Senegal. The project is a prime example of
the transformation from generating energy from fossil fuels towards cleaner, more
sustainable and more reliable energy. A stable power grid is decisive for the region’s
development, creating jobs and paving the way for investments.”