July 25, 2024

Afreenergy Solar Acquires Solar Assets in Senegal

In a strategic move bolstering its presence in West Africa, Afreenergy Solar has finalized the acquisition of a portfolio of solar assets in Senegal from the French developer GreenYellow. The agreement, signed on July 19, 2024, marks a significant step in Afreenergy’s ambition to become a leading Independent Power Producer (IPP) on the continent.

Portfolio and Environmental Impact

The deal encompasses GreenYellow’s entire share in three operational rooftop solar power plants with a combined capacity of 2.6 MWp. These assets are designed for self-consumption, providing clean energy directly to prominent commercial and industrial (C&I) clients in Senegal. The environmental benefits are substantial, with the facilities preventing over 2,000 tonnes of CO2 emissions annually. Over the lifespan of the contracts, this will amount to a cumulative reduction of more than 26,000 tonnes.

A Strategic Transaction for Both Parties

For Afreenergy, the acquisition is a calculated expansion into a key market. Christian Cachat, CEO of Afreenergy Solar, explained the rationale, stating, “This acquisition strengthens our presence in Senegal, a strategic country with significant momentum towards renewable energy (particularly solar). It’s a trend that we want to support through partnerships with local players, to give as many people as possible access to clean and affordable energy.”

Conversely, the sale aligns with GreenYellow’s evolving corporate focus. “We are pleased to transfer our solar assets to Afreenergy Solar, which will uphold our commitment to a sustainable energy transition and the promotion of renewable energy in Africa,” said Robinson Ralazraki, General Manager of GreenYellow Africa. He added that the transaction is consistent with GreenYellow’s strategy to geographically refocus its operations on Europe.

Fueling Afreenergy’s Pan-African Growth

This Senegalese portfolio is the latest addition to Afreenergy’s rapidly growing collection of assets, which now exceeds 320 MW of solar, storage, and hydro projects across 12 African nations. Founded in 2019 and supported by the climate-focused investor TimeToAct Capital, the Mauritius-based IPP is actively working to bridge Africa’s clean energy financing gap. With a professional team distributed across key African hubs, the company plans to pursue further acquisitions of late-stage projects, particularly in West Africa’s C&I solar and “run-of-the-river” hydro sectors.

Senegal’s Growing Renewable Hub

Afreenergy’s investment arrives as Senegal accelerates its transition to clean power. The nation’s “Plan Senegal Emergent” (PSE) prioritizes renewable energy development, creating a favorable environment for growth. This government-led initiative, combined with the country’s abundant solar resources, has made Senegal an increasingly attractive destination for international developers and financiers looking to expand the reach of solar energy. This latest acquisition, confirmed in recent reports, underscores the positive momentum in the country’s vibrant renewables market.