Desert-to-Power: The Sustainable Energy Fund for Africa (SEFA) Commits €6 million to Dédougou Solar Project in Burkina Faso

The plant will help diversify Burkina Faso’s energy mix, reduce electricity costs, and boost access to reliable, affordable electricity, supporting economic growth and local livelihoods

 

The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank, has committed a €6 million concessional finance package for the development of the 18 MW Dédougou Solar Power Plant in Burkina Faso, marking a significant milestone towards increasing the country’s energy generation capacity.

SEFA’s commitment comprises a €2.5 million senior concessional loan and a €3.5 million reimbursable grant, complemented by a combination of subordinated and senior loans from the Dutch Entrepreneurial Development Bank (FMO). This commitment was formalized during a signing ceremony in Paris on July 18th, bringing together stakeholders from the African Development Bank, FMO, project developer Qair, and advisors A&O Shearman and Trinity.

The Dédougou Solar Power project aligns with the African Development Bank-led Desert-to-Power initiative, which aims to turn the Sahel region into the world’s largest solar power zone. It is listed as a priority project in Burkina Faso’s national Desert-to-Power roadmap. It is among the first independent power producers (IPPs) in the country and operates under a 25-year Power Purchase Agreement with the national utility, Société Nationale d’Électricité du Burkina Faso (SONABEL).

“The Dédougou Solar PV project marks a significant milestone for Burkina Faso and the broader Sahel region,” said Dr. Daniel Schroth, the Bank’s Director for Renewable Energy and Energy Efficiency. As a key contribution to the Desert-to-Power initiative, it demonstrates the transformative nature of harnessing solar energy to drive inclusive and sustainable development. The catalytic support from SEFA was instrumental in unlocking this private sector-led project.”

Once operational, the plant will help diversify Burkina Faso’s energy mix, reduce electricity costs, and boost access to reliable, affordable electricity, supporting economic growth and local livelihoods. The project prioritizes sustainability through a comprehensive Environmental and Social Management System, ensuring responsible operations and mitigating potential environmental and social risks.

“This new financing from FMO and SEFA marks a significant milestone in Qair’s journey in Burkina Faso,” said Abdoulaye Toure, CFO of Qair Africa. “We are deeply grateful to both institutions for their continued trust and support, which enable us to deliver impactful renewable energy infrastructure in the region. After commissioning our first 24 MW solar plant in Zano in 2023, this second project in Dédougou reflects our expanding footprint and aligns with Qair’s long-term strategy to accelerate the energy transition across Africa.”

With committed support from SEFA and FMO, the Dédougou Solar Power Plant demonstrates the potential for private-sector-led future renewable energy projects in the Sahel region, accelerating the transition towards sustainable power, fostering economic growth, and enhancing the quality of life for communities across Burkina Faso.

 

Source: APO Group /  African Development Bank Group (AfDB).