AfrElec: AfDB approves €6mn for Burkina Faso solar project to boost Sahel energy initiative

The African Development Bank Group has approved a €6mn concessional financing package from the Sustainable Energy Fund for Africa (SEFA), a multi-donor fund managed by the bank, to support Burkina Faso’s Dédougou photovoltaic solar project, the AfDB announced.

This initiative is aligned with the bank’s broader Desert-to-Power initiative, which aims to deliver 10 GW of solar power across 11 countries in the Sahel by 2030.

The Dédougou project will involve the construction and operation of an 18-MW solar power plant located 250 km west of the capital, Ouagadougou. Burkina Faso is one of five key countries under the Desert-to-Power programme, designed to foster socio-economic development through renewable energy.

This project marks one of the first independent power producers (IPPs) in Burkina Faso. Despite securing loans and a 25-year power purchase agreement (PPA) with the national electricity company SONABEL, the project faced delays in reaching financial closure due to pandemic-related cost escalations. SEFA’s COVID-19 IPP Relief Programme provided crucial support by restructuring the financing and covering the increased costs, maintaining the original agreements with the Burkinabe government and ensuring the project’s viability. This intervention strengthens the nation’s energy security by boosting renewable generation.

Under the SEFA programme, the bank approved a €2,5mn senior concessional loan and a €3,5mn reimbursable grant, which has been vital in unlocking additional financing from the Dutch development bank FMO, further supporting the project company Dédougou Solaire SARL, a joint venture with QAIR, the French renewable energy firm responsible for managing the project.

As part of the Desert-to-Power initiative, the Dédougou Solar PV project is expected to contribute to Burkina Faso’s energy mix diversification, lower electricity costs and improved national electrification.

Daniel Schroth, director of the Renewable Energy and Energy Efficiency Department at the AfDB, stated: “The Dédougou Solar PV project increases Burkina Faso’s renewable energy capacity in line with the Desert-to-Power objectives. Projects like this make real progress toward electrifying the Sahel, enhancing energy security and improving livelihoods.”

Abdoulaye Toure, CFO at QAIR Africa, also expressed appreciation for SEFA’s support: “We are pleased with SEFA’s approval, which allows us to continue advancing Burkina Faso’s energy goals. This project builds on our success with the Zano solar plant and aligns with QAIR’s vision to be a leading player in Africa’s renewable energy sector.”

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