Africa REN, a renewable energy company based in West Africa, has received EUR 32 million for its Walo Storage Project in Senegal. The project, which is hailed as a major breakthrough for West Africa, is the first battery-storage project in the area dedicated to frequency regulation.
Senegal faces grid capacity challenges due to limited spinning reserves and the integration of intermittent energy. The Walo storage project will bring stability to the local grid and help reduce power outages.
The project was funded by the Dutch Development Bank FMO and the Emerging Africa Infrastructure Fund (EAIF) through Ninety One.
Of the €32 million, FMO provided a €11 million loan. The bank provided an additional €8 million loan through the Access to Energy Fund, one of the funds FMO manages on behalf of the Dutch government, with the aim of creating sustainable access to energy in developing countries.
“With the financing of the Walo Storage project, FMO contributes to a more stable and sustainable energy supply in Senegal,” said Huib-Jan de Ruijter, Co-Chief Investment Officer at FMO.
“The transaction is an important milestone for FMO in adding storage to FMO’s energy strategy, which goes beyond energy generation and addresses bottlenecks in the energy transition. With the Walo Storage project, FMO also further strengthens its strategic relationship with Africa REN and its commitment to support Senegal’s energy sector,” adds Ruijter.
An additional €11 million loan was provided by EAIF, a Private Infrastructure Development Group (PIDG) company, plus $1.5 million (equivalent in EUR) of Viability Gap Funding (VGF) extended by PIDG Technical Assistance.
Commenting on the transaction, Tidiane Doucoure, Director at Ninety One, the Fund Manager of The Emerging Africa Infrastructure Fund, said: “We are delighted to back Africa REN and support the first project-financed solar + battery storage project in Senegal, using our experience and expertise in the country. Upon completion, the project will provide grid stabilization and ancillary services to the utility company, Senelec”.
Africa REN says that the investment is in line with their commitment to positively contribute to the communities where they operate. The Walo project includes an inclusion program that involves the training of young people as well as the construction of small solar plants to power local pumping stations.
This landmark funding by FMO and EAIF for the Walo Storage Project reaffirms the commitment of our company to the region. This funding also paves the way for an innovative, resilient energy infrastructure to support Senegal’s 2030 Universal Access goal and reduce CO2 emissions significantly,” said Gilles Parmentier, CEO of Africa REN.
