Africa REN, a renewables project developer in West Africa, announced the successful financing of its Walo storage project in Senegal. The Dutch development bank FMO and the Emerging Africa Infrastructure Fund (EAIF), acting through Ninety-One, fund manager of EAIF will invest up to a total of €32 million in syndicated debt into Walo Storage, a project fully developed by Africa REN, with the support of the Seed Capital Assistance Facility and FMO.
The €32 million financing was provided in two parts. The first part was through FMO, with an €11 million loan, and an additional €8 million provided by the Access to Energy Fund, one of the funds FMO manages on behalf of the Dutch government with the aim to create sustainable access to energy in developing countries. The second part was through an €11 million loan from EAIF, a private infrastructure development group (PIDG) company, and a US$1.5 million (equivalent in EUR) of a viability gap funding (VGF) extended by PIDG Technical Assistance.
Walo storage is the first battery storage project in West Africa dedicated to frequency regulation. In a country challenged by grid constraints due to limited spinning reserves and the ongoing integration of intermittent energy, the Walo storage project will bring much-needed stability to the local grid and reduce power outages. Furthermore, this initiative supports Senegal's 2030 Universal Access goal by producing 16 MW from green energy sources and is anticipated to reduce carbon dioxide (CO2) emissions by 17 000 to 21 000 tpy.
“The Walo Storage project paves the way for an innovative and resilient energy infrastructure that supports Senegal's 2030 Universal Access objective and significantly reduces CO2 emissions. At Africa REN, we believe that sustainable energy solutions are key to unlocking potential and driving growth in Sub-Saharan Africa, and we are excited about the opportunities that this project will bring to the communities we serve," said Gilles Parmentier, CEO of Africa REN.
“With the financing of the Walo Storage project, FMO contributes to a more stable and sustainable energy supply in Senegal. The transaction is important 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 relationship with Africa REN and its commitment to support Senegal’s energy sector,” commented Huib-Jan de Ruijter, Co-Chief Investment Officer at FMO.
“Within six years, Senegal has successfully installed nearly 25% of the country’s energy mix from renewable energy sources. This rapid deployment of renewable energy in the grid has accelerated the needs for large scale battery storage. We are delighted to back Africa REN and support the first project-financed solar-plus-battery storage project in Senegal, using our experience and expertise in the country. Upon completion, the project will provide grid stabilisation and ancillary services to the utility company, Senelec,” added Tidiane Doucoure, Director at Ninety-One and Fund Manager of the Emerging Africa Infrastructure Fund.
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