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Proparco is investing in renewable energies in Senegal
Project
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Signature date
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Location
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Senegal
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Financing tool
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Financing amount (Euro)
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5793000
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Financing details
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EUR 5,793,000 loan
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Customer
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Scaling Solar Senegal_Touba (Kael)
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Type of customer
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Company
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Country of headquarters
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Senegal
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Project number
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PSN1077
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Environmental and social ranking
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B+
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco is financing the construction and operation of a 35 MWc photovoltaic power plant in Senegal. The energy produced should reduce emissions by 38,700 tCO2eq a year, while improving access to electricity for over 250,000 people.
Client presentation
The borrower is an SPV specifically set up for the project. The SPV’s shareholders are:
- The investment fund Meridiam;
- The energy operator ENGIE; and
- The Senegalese sovereign fund FONSIS.
Project description
The project involves financing the construction and operation of a 35 MWc photovoltaic power plant. The energy produced will be sold to the local utility (Senelec) at a price of FCFA 25/kWh.
Project impact
This project is expected to have major impacts on development in Senegal:
- The photovoltaic power plant should reduce emissions by 38,700 tCO2eq a year, while improving access to electricity for 250,000 people.
- By increasing the electricity supply by an average of 58 GWh a year, the photovoltaic power plant should strengthen the security of electricity supply in Senegal. In addition, a positive impact is expected on the financial balance of the electricity sector thanks to the very competitive generation cost.
- The solar power plant should support some 1,050 indirect local jobs over the next 5 years. The unskilled labor will be recruited in villages located near the photovoltaic power plant. Training will be provided for the implementation of photovoltaic modules and a training certificate will be given.
- The project will also participate in the economic growth of the country by contributing to GDP and generating significant additional government revenues.