Mali Solar Report

Mali’s installed solar PV capacity reached 97 MW by the end of 2023, according to IRENA.⁵

Mali targets a significant expansion of its solar energy capacity, reaching 300 MW by 2024.⁵⁶

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Solar: The levelized cost of solar electricity averages $0.042 per kilowatt-hour (kWh).

Thermal power plants: Mali’s thermal power plants generate electricity at an average cost of $0.24 per kWh.

Hydropower: Hydroelectric electricity in Mali comes at an average cost of $0.07 per kilowatt-hour (kWh).

Mali’s electricity mix is currently dominated by hydraulics (55%) and diesel (45%), with renewable sources like solar and hydroelectric power contributing only 1%, despite the country’s vast potential for these clean energy sources.⁸

In Mali, only 53.4% of the population has access to electricity, with frequent blackouts lasting up to 12 hours, including all-night outages. Access varies greatly depending on location: 96.9% in urban areas, 18.3% in rural areas, where power is often limited to 12 hours a day due to high fuel costs.⁹¹⁰¹¹

Mali’s residential solar panel installation data is currently unavailable, but the country has seen progress in solar adoption, with 33 solar home systems installed under a regional program and a significant increase in off-grid solar product sales, totaling 21,364 units sold by affiliates.¹²¹⁴

From publicly available records, it seems there are around 13 installed and projected solar farms in Mali.¹³

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Current Demand: Mali saw a significant boost in off-grid solar sales, with 21,364 units sold in the first half of 2021, according to GOGLA data. Additionally, Power Africa has facilitated 149,848 off-grid connections in Mali, primarily solar lanterns, with a smaller portion being solar home systems.

Projected Demand: Mali’s National Renewable Energy Action Plan aims to significantly boost off-grid renewables, targeting a thirtyfold increase in installed capacity from 20 MW in 2010 to 600 MW by 2030.

Current Demand: As of 2023, Mali has an installed on-grid solar power capacity of approximately 97 megawatts (MW).⁵

Projected Demand: Mali’s on-grid solar PV market is expected to expand further, with a study by UEMOA identifying five sites, including Mali, for large-scale solar power plants totaling 574 MW, slated for completion by 2030.¹²

Mali’s average monthly salaries span from $82 to $328 for lower-skilled workers, while higher-skilled professionals can earn upwards of $492, with notable differences based on factors like industry, education level, and work experience.¹⁶

As of July 1, 2024, the population of Mali was approximately 24,015,789 people.¹⁷

The overhead costs for solar panel production in Mali typically range from 20% to 25% of the total production cost.^16181920

Labor cost: : Mali’s minimum wage (SMIG) is $35, which is the base for full-time employees with formal contracts, excluding allowances. Additional occupational categories have higher monthly base salaries, including mandatory allowances, as follows:

• unskilled worker: 48.36 USD
• semi-skilled worker: 64.48 USD
• group leader: 96.72 USD
• foreman: 120.90 USD
• typist: 64.48 USD
• secretary: 112.84 USD
• accountant: 132.85 USD

Utilities: Running production lines consumes a substantial amount of energy, incurring costs of approximately $0.156 per kilowatt-hour (kWh).

Electricity and water costs:

Electricity costs include a $24.18 annual premium and variable usage fees: peak hours (6pm-12am) at $0.13/kWh, busy hours (6am-6pm) at $0.084/kWh, and low hours (12am-6am) at $0.07/kWh. Water rates are $0.32/cubic meter for residential and $0.13/cubic meter for industrial use

Rents: Mali’s rental rates differ by property type and tenancy length, with monthly minimums of $4.84/square meter for industrial/commercial use, $4.08/square meter for residential use, and $0.34/square meter for 99-year leases. Downtown Bamako office space can command up to $19.34/square meter per month.

Administrative Expenses costs associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically add up to a substantial part of the overhead.

Quality control: expenses are incurred to ensure the solar panels meet performance and safety standards, including testing and inspections.

Insurance: In 2019, Mali’s total insurance density, encompassing both life and non-life insurance, was approximately $4.51 per capita.

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Overview

Mali’s electricity generation is primarily sourced from hydropower (55%) and diesel (45%), despite having significant solar and hydro potential. With a population of 18 million, the country’s installed capacity is only 310MW, supplemented by 50MW imports from Cote d’Ivoire and 90MW off-grid production. The state-owned utility, plagued by poor management and reliance on government and regional bank subsidies, struggles to meet the growing electricity demand, exacerbating supply shortages.

Generation

Mali’s electricity generation is dominated by hydropower and thermal power stations, producing 500-600 GWh annually. The EDM-run national grid serves 35 towns, with hydropower accounting for 51% of installed capacity, despite being impacted by rainfall variability. While hybrid systems are present, non-hydropower renewables contribute negligibly to the country’s energy production.

Transmission and Distribution

Mali’s national grid comprises high-voltage lines connecting major cities, including a 150kV line from the Selingue hydropower plant to Bamako, Fana, and Segou, and a 225kV line operated by the Energy Management Company of Manantali. State-owned EDM S.A. has a near-monopoly on electricity generation, transmission, and distribution, with the Malian State holding 98% of its capital. EDM manages 31 isolated diesel-powered production centers, two centers supplied by Côte d’Ivoire’s grid, and handles cross-border electricity trade. Mali imports a minimum of 30 MW from Côte d’Ivoire, increased to 50 MW in 2017, with imports reaching 333.18 GWh that year. Isolated centers have a total installed capacity of 70 MW, accounting for 7.6% of EDM’s generation.

Renewable Energy

Mali has a strong foundation for renewable energy, particularly solar power, due to its high solar irradiation levels of 5-7 kWh/m2/day across the territory, making it an attractive location for solar thermal plant projects.

Electricity Tariff

In Mali, hoouseholds pay $0.239 per kWh for electricity, while business are charged $0.810 per kWh

Industry Prospects

The Government of Mali is on the hunt for collaborative opportunities to develop its impressive portfolio of renewable energy resources, featuring 800MW of hydroelectric power, boundless solar energy, and 300MW of biomass. By joining forces with strategic partners, the government seeks to supercharge EDM’s production capacity, electrify rural areas, and optimize the energy production and distribution ecosystem.

Investment in Renewable Energy

In November 2023, Mali’s Investment Plan, backed by the Climate Investment Funds (CIF), was approved with an initial $32.6 million allocation from the African Development Bank and World Bank, and a potential additional $20 million, totaling $52.6 million. The plan aims to accelerate Mali’s energy transition by enhancing energy system flexibility and increasing renewable energy integration, targeting 399 MW of solar capacity by 2025 and 977 MW by 2030. This initiative seeks to boost Mali’s solar penetration rate from 3% to 15% by 2030.

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The National Policy for the Protection of the Environment:

• This policy prioritizes sustainable development and environmental protection for all Malians, providing a framework to address specific environmental concerns. Key objectives include promoting renewable energy use, particularly in rural areas, enhancing human capacity, and combating desertification.

Mali’s National Energy Policy: Renewable energy objectives and measures:

Mali’s policy seeks to expand renewable energy adoption, targeting a 10% share of electricity generation by 2015, up from less than 1% in 2004. Key initiatives include:

• Assessing and developing renewable energy resources
• Promoting solar energy in rural areas
• Supporting local content and manufacturing
• Advancing research in emerging renewable energy technologies

Initially, these efforts were driven by the World Bank’s Renewable Energy Loan Project.

Quality control standards:

The Government of Mali (GoM) plans to equip AER-Mali with laboratory equipment to test local and imported renewable energy products, setting standards to ensure a sustainable market. However, a sustainable market requires quality assurance at all levels. High-quality equipment only performs as expected when designed, installed, and maintained by highly skilled technicians. Currently, Mali faces a shortage of qualified solar system technicians, a common regional issue. To address this, IRENA is developing a regional certification scheme for solar PV installers, which could benefit Mali by providing high-quality technicians to alleviate its technical skills shortage.

Regional certification scheme for solar Photovoltaic installers: West Africa

IRENA partners with ECREEE, the Economic Community of West African States’ (ECOWAS) renewable energy agency, to develop a regional certification program, Certification for Sustainable Energy Skills (ECSES). This program aims to enhance the skills of renewable energy professionals, including off-grid solar PV technicians, to support ECOWAS countries’ renewable energy market growth. ECREEE oversees the program, with IRENA providing advisory support until a separate entity is established. The ECSES scheme requires technicians to pass regionally standardized exams, based on a Job Task Analysis (JTA), to ensure uniform competency across the region. The JTA, operational processes, and exam content have been developed in English and French, with IRENA’s support, and approved by ECOWAS members.

Tax Exemptions for Solar Products:¹⁴

• Mali’s Law n2020-01216, enacted in 2020, grants tax and import duty exemptions for solar products and other renewable energy equipment. However, some operators face challenges in securing duty exemptions at border crossings. Furthermore, a 2.5% administrative fee still applies to all imports

Independent Power Producer (IPP) Solar Project:⁵

• The Malian government has awarded a 30-year concession to an independent power producer (IPP) for a 50 MWp solar power plant, a project initially agreed upon in 2016, with an investment of approximately 101 million USD (60.8 billion CFA francs)

Renewables Readiness Assessment (RRA):¹²

• Mali’s Renewable Readiness Assessment (RRA) stresses the importance of expanding the use of various renewable energy technologies and diversifying the power mix by increasing the share of non-hydro renewable sources.”

World Bank’s Yelen Sira Project: ²³

• The World Bank has allocated $157 million in funding to support Mali’s efforts to enhance its electricity infrastructure and improve the overall power system.
• The Yelen Sira project, focusing on Electricity System Reinforcement and Access Expansion, seeks to improve electricity reliability, efficiency, and accessibility while promoting the integration of solar and other renewable energy sources. Key investments include upgrading grid infrastructure, establishing new connections, and developing green mini-grids in rural areas.

Decentralized Solar Mini-Grids:²⁴

• Mali’s rural electrification approach prioritizes decentralized mini-grids, with projects supported by IRENA and ADFD aiming to expand solar energy access to remote and underserved areas.

Foundation Rural Energy Services (FRES):²⁵

• FRES brings electricity to Malian villages through solar-powered mini-grids, fostering opportunities for local entrepreneurship and community growth.

Investment: ¹²

Mali introduced an investment code in 2012 to attract foreign investment in the electricity sector, offering benefits such as:

• Waived minimum investment thresholds
• Streamlined online approval process within five days
• Non-discrimination for foreign investors
• Repatriation of capital and profits
• Foreign ownership allowed
• Dispute resolution through international organizations (ICSID, CCJA, OHADA)
• Investment guarantees under the Multilateral Investment Guarantee Agency
• Reduced customs tax, VAT, and other taxes for investments over $500,000

These incentives aim to create a favorable business environment for private investors to develop Mali’s electricity sector.

These initiatives underscore Mali’s resolve to harness solar energy and foster sustainable development, demonstrating a clear commitment to environmental stewardship and economic growth.

KITA SOLAR PLANT:²⁶

• Location: Approximately 180 km west of Bamako, in Mali’s Kayes Region
• Installed Power: 50 MWp (megawatts peak)
• Technology: Ground mounted photovoltaic panels and Agri voltaism
• Status: In Operation since March 2020

SANANKOROBA SOLAR PLANT:²⁷

• Location: southwestern part of Mali
• Installed Power: 200 MW
• Technology: photovoltaic
• Status: Pre-construction

SEGOU SOLAR FARM:²⁸

• Location: Pélengana, Ségou Cercle, Ségou Region, Mali
• Installed Power: 33 MWp/dc
• Technology: photovoltaic
• Status: Pre-construction

SAFO SOLAR POWER PLANT:⁵

• Location: Koulikoro region
• Installed Power: 100 MWp
• Technology: photovoltaic
• Status: on-going

FANA SOLAR FARM:⁶

• Location: Bamako, Dioïla circle, Koulikoro Region, Mali
• Name plate capacity: 50 MWp/dc
• Technology: photovoltaic
• Status: Shelved (inferred August 2023)

Legendre Energie:²⁹

• NEXHOS ENERGIES, previously known as Legendre Energie, provides a comprehensive suite of services for property owners to decarbonize their assets, including:
• Development and installation of photovoltaic solar power plants (ARMORGREEN)
• Operation and maintenance of power plants (ENER24)
• Investment solutions (GREENERGIE)

With 15 years of experience, NEXHOS ENERGIES offers a one-stop-shop for sustainable energy solutions.

Scatec solar:³⁰

• Scatec’s integrated business model covers the development, construction, ownership, and operation of renewable energy plants in emerging markets, with a focus on delivering cost-competitive solutions through long-term PPAs. Scatec’s flexible approach combines single or multiple renewables technologies to optimize each project’s efficiency and value.

Nova wind:³¹

• NovaWind, part of Russia’s Rosatom, is a pioneer in renewable energy solutions, offering a comprehensive range of services:
• Wind power plant design and construction
• Localized component manufacturing
• Supply chain and logistics management
• O&M services for wind farms
• Green electricity sales, including direct supply to responsible consumers

Through its innovative approach, NovaWind promotes the adoption of energy-efficient and resource-saving practices, contributing to a sustainable energy future.

Akuo Energy:³²

Akuo takes a holistic approach to renewable energy, spanning the entire project lifecycle:

• Development and financing
• Construction and operation
• Energy sales and clean energy distribution

Akuo also innovates with Agrivoltaics, combining renewable energy production and agriculture, generating benefits for farmers and communities alike.”

Kaba Solar:³³

Kaba Solar is dedicated to driving the transition to solar energy in Mali, providing a comprehensive range of services:

• Solar panel installation
• Equipment sales
• Energy efficiency consulting
• Maintenance services

Guided by the principles of quality, excellence, and sustainability, Kaba Solar strives to make solar energy accessible and affordable for all.