The Dedougou Solar Project has secured €6 million in concessional financing from the African Development Bank’s SEFA to complete an 18-MW solar plant in Burkina Faso. This project supports the Desert-to-Power initiative and aims to enhance energy security and drive socio-economic development in the region.
Burkina Faso’s Renewable Energy Growth
The Dedougou Solar Project has received a €6 million concessional financing package from the African Development Bank's (AfDB) Sustainable Energy Fund for Africa (SEFA). This funding is aimed at accelerating the completion of the 18-megawatt (MW) photovoltaic solar power plant in Dedougou, Burkina Faso, located 250 kilometers west of the capital, Ouagadougou.
This project aligns with the AfDB’s Desert-to-Power initiative, which seeks to generate 10 gigawatts (GW) of solar power across 11 Sahelian countries by 2030. Burkina Faso is one of the five priority countries under this initiative.
Dédougou Solaire is being jointly developed by QAIR, a French independent power producer committed to promoting renewable energy projects across Africa.
Financing and Support
The financing package consists of a €2.5 million senior concessional loan and a €3.5 million reimbursable grant. This financial support comes from SEFA’s Covid-19 Independent Power Producer (IPP) Relief Programme, designed to help renewable energy projects affected by the pandemic.
The Dedougou Solar Project faced delays in financial closure due to cost escalations caused by the pandemic. However, the SEFA Programme provided crucial assistance to restructure financial arrangements and absorb the increased costs, thereby ensuring the project’s viability.
The SEFA Programme’s support unlocked additional financing from the Dutch entrepreneurial development bank, FMO, which provided both subordinated and senior loans. These funds will be disbursed to Dédougou Solaire SARL, the project company responsible for managing the solar plant.
Key Benefits of the Dedougou Solar Project
The Dedougou Solar Project will contribute to Burkina Faso’s energy diversification efforts, moving the country away from reliance on fossil fuels. The solar plant will generate clean and renewable energy and help reduce the country’s dependence on expensive imported fuel sources.
A 25-year Power Purchase Agreement (PPA) with SONABEL — Burkina Faso’s national electricity company — ensures a stable and long-term supply of solar power to the national grid. The project is expected to lower electricity costs, increase electrification rates, and improve access to reliable energy, particularly in rural and underserved communities.
Dr. Daniel Schroth, Director of the Renewable Energy and Energy Efficiency Department at the AfDB, highlighted the significance of the Dedougou Solar Project. “The Dédougou Solar PV project increases Burkina Faso's renewable energy generation capacity in line with the objectives of the Desert-to-Power Initiative,” he said
“By backing projects like this, we are making tangible strides toward electrifying the Sahel, bolstering energy security, and improving the lives of millions,” he added.
Overcoming Challenges
The Dedougou Solar Project faced financial hurdles due to the Covid-19 pandemic, which caused significant cost increases. However, with SEFA’s support, the project was able to maintain its originally agreed-upon financial structure with the Government of Burkina Faso.
Abdoulaye Toure, CFO at QAIR Africa, expressed appreciation for SEFA’s assistance in advancing the project. “We are pleased with this approval by SEFA and thank the African Development Bank for their support of the project.”
“This allows us to move forward with our commitment to supporting Burkina Faso’s energy goals by developing a second solar plant, just a year after the successful commissioning of Zano,” Toure stated.
As Burkina Faso continues to embrace renewable energy, projects like Dedougou Solar Plant will play a central role in achieving national and regional energy goals. With support from international organizations like the AfDB and SEFA, Burkina Faso is well on its way to becoming a leader in renewable energy development in the Sahel region.