AXIAN Energy, a renewable energy project developer, secured €84 million (~$89.69 million) financing for two solar plants with energy storage systems in the southern Senegalese region of Kolda. A group of lenders comprising the Dutch entrepreneurial development bank FMO, the Emerging Africa & Asia Infrastructure Fund (EAAIF), and Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) provided the funding.
The overall investment volume is over €105 million (~$112.12 million), of which €84 million (~$89.69 million) is debt, with €30.5 million (~$32.5 million) provided by each EAAIF and FMO, and €23 million (~$24.56 million) by DEG. EAAIF and the FMO acted as co-mandated lead arrangers in the funding round.
The Kolda solar farm project will have an annual capacity of 60 MW and a 72 MWh battery storage capacity to supply power for up to three hours during peak times. The project is scheduled for completion in 2026. Once operational, the project is expected to provide clean electricity to approximately 235,000 people, according to AXIAN.
DEG Management Board member Monika Beck said, “This financing allows us to play an important role in helping to electrify rural areas in Senegal. The project is a prime example of the transformation from generating energy from fossil fuels towards cleaner, more sustainable, and more reliable energy. A stable power grid is decisive for the region’s development, creating jobs and paving the way for investments.”
According to Mercom’s 9M and Q3 2024 Solar Funding and M&A report, large-scale project funding in 9M 2024 totaled $34.3 billion in 180 deals, up from $27.5 billion in 169 deals in 9M 2023.
Last month, Mainstream Renewable Power, a solar and wind project developer, announced the financial closure of its 50 MW Ilikwa solar project in the Free State province of South Africa. The power produced will be supplied to multiple private commercial and industrial customers under flexible, shorter-term power purchase agreements in a new-to-market product called Renewable Energy Supply Agreements.
