Axian Energy, part of the Pan-African conglomerate Axian Group, has secured US $89.1M in financing to support its 60-MW Kolda solar project in Senegal.
This project will include the construction of two photovoltaic (PV) parks and a 72-MWh battery storage system. The total project cost is estimated at over EUR 105 million. The debt financing arrangement was organized by the Emerging Africa & Asia Infrastructure Fund (EAAIF), the Dutch development bank FMO, and the German development finance institution DEG. EAAIF and FMO each contributed US $32.1M, while DEG provided US $24.3M.
Located in the Kolda region, the solar complex is scheduled to be operational by 2026. It is expected to generate enough energy to meet the needs of approximately 235,000 people. The integrated battery storage will enable up to three hours of backup power during evening peak demand.
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West Africa’s largest solar park
Once completed, the Kolda complex will be West Africa’s largest solar park with integrated battery storage. The project supports Senegal’s goal of achieving 40% renewable energy capacity by 2030. Senegal’s current energy system is still dominated by expensive imported fossil fuels: heavy fuel oil continues to make up the largest share of the country’s electricity generation. This dependence on imported fossil fuels has placed a major strain on the economy and led to some of the highest electricity prices in Africa.
In addition to the renewable portfolio, phasing out heavy fuel oil and coal can be done with domestic Senegalese gas resources. While gas could potentially help balance the fluctuating availability of renewables by coming online when the sun isn’t shining and the wind isn’t blowing, gas to power expansion also runs a risk of either high emission lock-in – competing and undermining renewables – or ending up as stranded assets in a more rapid transition. These can largely be avoided with transmission and system flexibility measures to allow Senegal to build on its existing renewable success.
