IFC, a member of the World Bank Group, has finalized financing for the first two Scaling Solar projects in Senegal.
The plants – sponsored by Engie, Meridiam, and Senegalese Sovereign Wealth Fund for Strategic Investments (FONSIS) – are expected to reduce greenhouse gas emissions in Senegal by 89,000 tons of C02 equivalent per year. These two solar plants will provide 60 MWac of clean and low-cost power.
The financing package for the two projects located in Kael and Kahone includes senior loans worth €38 million from IFC, the Finland-IFC Blended Finance for Climate Program, the European Investment Bank, and Proparco.
Scaling Solar program offers competitive bidding and streamlined procurement for grid-tied solar photovoltaic power in emerging markets. The World Bank Group program is supporting the development of more than 1 gigawatt of solar power across Africa.
Senegal’s first Scaling Solar tender received six bids for each project. The tenders resulted in tariffs of 3.80 and 3.98 Euro cents per kilowatt hour – 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 plant,” said Philippe Le Houérou, CEO of IFC. “The program is delivering tremendous results and continues to expand across Africa and into new regions.”