Africa REN, a pioneer of renewable energies in Africa, announces that it has launched the construction of the Kodeni Solar solar power plant, near Bobo-Dioulasso, in Burkina Faso. With an installed capacity of 38MW, Kodeni Solar will be the largest solar power plant in the country as well as the first public-private partnership to reach financial closing. The commissioning of the plant is scheduled for August 2022.
Kodeni Solar has signed a 25-year Power Purchase Agreement (PPA) with SONABEL, the Burkina Faso power company, as part of a public-private partnership with the government. The construction was entrusted to the French specialist INEO by EQUANS, a company of the Engie group. The project will create 150 direct jobs during the construction phase and 35 permanent jobs during the operation phase.
With an annual output of 73,000 MWh, the Kodeni solar power plant will provide clean, reliable and affordable energy to nearly 115,000 homes. It will also reduce the country’s dependence on fossil fuels and prevent the emission of 41,000 tonnes of CO2 each year, thus helping Burkina Faso fight climate change.
Gilles Parmentier, CEO of Africa REN, said: “We are particularly proud of the milestone we are taking today. Kodeni Solar will be the largest solar power plant in Burkina Faso to become operational. We would particularly like to thank the government of Burkina Faso and the SONABEL teams for their warm welcome and their unwavering support in bringing this project to fruition in a very short timeframe. ”
H.E. Dr. Bachir Ismael Ouedraogo, Minister of Energy, said: “This is an essential project for the energy self-sufficiency of Burkina Faso. Solar energy is the cheapest and most abundant source of electricity for the country. Kodeni Solar also demonstrates that the framework the government has put in place to encourage public-private partnerships is starting to bear fruit. More than 500 MW of capacity will be installed by 2025 at an extremely competitive price, for the benefit of the population and businesses of Burkina Faso. ”
Project development was undertaken by Africa REN with support from the Seed Capital Assistance Facility, an initiative of the United Nations Environment Program, which co-financed the development phase of the project. FMO, the Dutch development bank, Access to Energy Fund (a fund managed by FMO on behalf of the Dutch government) and Interact Climate Change Facility (ICCF), a joint mechanism of European development institutions, provided the long-term debt.
Huub Cornelissen, Director of Energy at FMO, said: “Kodeni Solar is one of our first investments in Burkina Faso, a country which has given us an exceptional welcome and where there are enormous possibilities in the solar energy sector. renewable energies. Together with our partners in the country and in the wider region, we are delighted to embark on a greener future for the Sahel at a time when such an investment is needed more than ever. ”
To support its ambition to develop more clean energy and sustainable infrastructure projects, Africa REN has partnered with Metier Sustainable Capital, a private equity fund focused on clean infrastructure investments across Africa, managed by Metier, and FMO. Metier and FMO created and financed Africa REN Energy, a newly formed investment holding company, intended to support Africa REN projects, as well as the operational entities of the Africa REN group. Africa REN Energy provided the equity for the project and is now the sole shareholder of Kodeni Solar.
Marc Immerman, Director of Metier’s Sustainable Capital Practice, said: “We are delighted to partner with the Africa Ren leadership team and FMO in the Africa REN clean energy investment platform. Africa REN has demonstrated a pioneering capacity to deliver high added value clean energy projects for the benefit of public power companies and enterprises in West Africa. This is an exciting opportunity to develop an independent West African power producer poised to deliver exceptional yields and positive ESG impacts across the region. ”
Paul Botha, CEO of Metier, said: “As a company, Metier is proud of this transaction which confirms our ambition to become a pan-African private equity firm. ”
Metier’s Sustainable Capital department is a private equity fund manager for clean infrastructure with a mandate to invest in renewable energy, energy efficiency, water and waste treatment in Africa.
