Afreenergy Solar has secured a €12 million senior debt facility from the Renewable Energy Performance Platform 2 (REPP 2) to expand its commercial and industrial solar portfolio in Senegal. The investment will increase its installed capacity from 2.7 MWp to 14.9 MWp and add 5.7 MWh of battery storage. The expansion comes as businesses look for ways to cut electricity costs and improve the reliability of their power supply.
Announced on 21 October 2026, the financing will fund new rooftop solar installations, refinance existing projects and support the deployment of battery storage. Camco, a climate and impact fund manager, manages REPP 2 and finances renewable energy projects in emerging markets. The deal follows a €4.3 million commitment from the Private Infrastructure Development Group (PIDG) through its project development arm, InfraCo, earlier in 2026.
Afreenergy Solar develops, owns and operates solar systems for businesses in sectors such as retail, food processing, agro-industry and infrastructure. Rather than buying and maintaining the equipment themselves, customers purchase electricity from the company under long-term agreements. Camco says Afreenergy Solar’s existing contracts and pipeline of potential projects give it room to grow. Benjamin Hugues, a director at Camco, said the financing would help the company expand in Senegal and build a platform to serve larger industrial and mining customers across Africa.
The investment comes as Senegalese businesses continue to face concerns about electricity costs. Senegal has historically relied heavily on thermal power generation, including imported petroleum products, leaving electricity costs exposed to changes in fuel prices and supply. The US Department of Commerce’s 2026 Senegal energy guide highlights the need to diversify power generation, reduce costs and improve electricity access.
Businesses that consume large amounts of electricity during the day can use rooftop solar to meet part of their energy needs and reduce the amount they buy from the grid. This can benefit food processors, warehouses, retailers and agro-industrial companies that need reliable electricity for refrigeration, machinery and lighting. The savings will depend on each business’s consumption patterns, electricity tariffs, contract terms and the amount of solar power it can use directly.
Afreenergy Solar estimates that customers could reduce their electricity costs by around 30%. However, this is a projected saving, not a guaranteed outcome. Actual savings will depend on each site’s conditions, electricity consumption, contract pricing and how closely solar generation matches the business’s operating hours.
The planned 5.7 MWh of battery storage will complement the expanded solar capacity. Batteries can store excess electricity generated during sunny periods and supply it when solar output falls, allowing businesses to use more of their own power beyond daylight hours. Depending on the system design, battery storage can also help manage electricity demand and provide support during power interruptions.
However, battery energy capacity and power output measure different things. Megawatt-hours (MWh) indicate how much energy a battery can store, while megawatts (MW) measure how quickly it can deliver that energy. The level of backup available to each business will depend on the power rating, configuration and equipment connected to its battery system. The planned 5.7 MWh of storage across the portfolio does not guarantee uninterrupted power for every customer.
The financing also shows how solar developers can attract investment without requiring individual businesses to buy their own equipment. By combining several installations and long-term electricity contracts into one portfolio, Afreenergy Solar can use revenue from multiple customers to support its financing. This approach spreads some of the project risks across several sites instead of relying on a single installation.
For businesses, this model offers a way to access solar power without making a large upfront investment in equipment. Customers pay for the electricity they use under agreed contract terms, while Afreenergy Solar manages the installation and its operation. This arrangement can help companies manage energy costs while keeping their capital available for other business needs.
The model also places responsibilities on the developer and its lenders. Afreenergy Solar needs reliable customers, realistic electricity demand forecasts, and sound contracts and systems that perform throughout their operating lives. Refinancing existing installations while developing new ones can help the company expand its portfolio. However, its financial performance will still depend on customers paying their bills, equipment operating reliably and new projects being completed successfully.
Afreenergy Solar’s growth builds on its acquisition of three rooftop solar plants from GreenYellow in July 2024. The plants had a combined capacity of 2.6 MWp and gave the company an established operating base. In March 2026, PIDG committed €4.3 million through InfraCo to support further development, initially in Senegal, with plans to explore selected markets across West and Central Africa.
PIDG has also identified opportunities to develop more commercial and industrial solar projects, including battery systems for agro-industrial businesses, logistics operators and other energy-intensive customers. The new €12 million senior loan adds debt financing to the earlier development support and will help Afreenergy Solar expand its existing operations and build new installations.
Senegal’s wider energy plans provide further context for the investment. Under its Just Energy Transition Partnership with international partners, the government has committed to raising the share of renewable energy in its electricity mix to 40% by 2030. Senegal is also working to diversify its energy sources, increase generation capacity and extend electricity access, particularly in rural communities.
Official figures show that Senegal’s national electrification rate reached 86.2% in 2024, although access remains uneven between urban and rural areas. Afreenergy Solar focuses on commercial and industrial customers rather than households without electricity. Even so, projects like these can support a more diverse energy mix by generating electricity closer to where businesses use it and reducing their dependence on the national grid.
source: africasustainabilitymatters
African Energy Council