Axian Energy: Pioneering Renewable Energy with Senegal Solar Plant
Deal News | Nov 21, 2024 | Phoenicia Group Libya LLC
The Emerging Africa & Asia Infrastructure Fund (EAAIF), along with the Dutch entrepreneurial development bank (FMO) and the German Investment Corporation (DEG), are collectively investing EUR 84 million to fund two photovoltaic solar plants complete with battery storage systems, operated by AXIAN Energy in Senegal’s Kolda region. The overall project investment is over EUR 105 million, with aims to provide clean energy to empower local communities, supporting Senegal's ambition to have 40% of its energy from renewable sources by 2030. The Kolda solar farm will become the largest plant of its kind in West Africa, with an annual capacity of 60 MW set to provide energy to approximately 235,000 people. The inclusion of a 72 MWh battery will strengthen grid stability, particularly during peak times, allowing for a smoother integration of renewable energy. This initiative is lauded by AXIAN Energy CEO Benjamin Memmi and other partnering organizations, including Tidiane Doucoure of EAAIF, Huib-Jan De Ruijter of FMO, and Monika Beck of DEG, as an important stride forward in both energy solutions and economic development for Senegal.
Sectors
- Renewable Energy
- Infrastructure Investment
Geography
- Senegal – The location of the solar energy projects funded by the investment, highlighting a major development in the country’s renewable energy landscape.
- West Africa – The broader regional impact, as the solar plant in Senegal is set to become the largest in West Africa, influencing renewable energy improvements in the region.
Industry
- Renewable Energy – Focus on the development of solar energy and battery storage projects in Senegal, aligning with global trends to transition towards cleaner energy sources.
- Infrastructure Investment – The deployment of significant capital into large-scale infrastructure projects like solar plants and battery systems, essential for economic and energy security.
Financials
- EUR 84 million – Investment committed by EAAIF, FMO, and DEG for two solar plants with battery storage in Senegal.
- EUR 105 million – Total investment volume for the photovoltaic solar plants with battery storage systems.
- EUR 30.5 million – Financing provided separately by each EAAIF and FMO within the total investment.
- EUR 23 million – Investment amount contributed by DEG.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AXIAN Energy | Project Operator | Company | A renewable energy project developer responsible for operating the solar plants in Senegal. |
| Emerging Africa & Asia Infrastructure Fund (EAAIF) | Investor | Company | A major investor in the project, promoting infrastructure development in Africa and Asia. |
| Dutch entrepreneurial development bank (FMO) | Co-Mandated Lead Arranger and Investor | Company | A development bank providing financial support for sustainable private sector development. |
| German Investment Corporation (DEG) | Investor | Company | Supports private enterprise initiatives in developing countries. |
| Senelec | Utility Company | Company | Senegal's state-owned electric utility, responsible for integrating the renewable energy into the grid. |