Grace Ashiru
Africa REN Pioneers Walo Storage Project in Senegal Gilles Parmentier, the CEO of Africa REN, is lauding the breakthrough Walo Storage Project in Senegal. This initiative has secured close to $35 million in funding, set to transform the energy canvas of the nation.
West African renewable energy project developer, Africa REN, has reached a crucial benchmark, successfully financing the pioneering Walo Storage Project in Senegal.
The innovative project, wholly conceived by Africa REN, has secured a total investment of around $35 million, equivalent to €32 million. This financing was granted by the Dutch development bank FMO and the Emerging Africa Infrastructure Fund (EAIF), operating under the auspices of Ninety One, the EAIF’s fund manager.
This financing package encompasses varied contributions from essential stakeholders. The FMO is contributing an €11 million loan, complemented by a further €8 million loan from the Access to Energy Fund, an entity committed to fostering sustainable energy access in developing countries.
The EAIF, a Private Infrastructure Development Group subsidiary (PIDG), provides an €11 million loan. The PIDG Technical Assistance will also offer $1.5 million in Viability Gap Funding (VGF) equivalent in EUR.
Gilles Parmentier, CEO of Africa REN, voiced his delight at reaffirming his company’s influential role in the green energy revolution burgeoning in Sub-Saharan Africa. He said, “This significant financing from FMO and EAIF for the Walo Storage Project reinforces our commitment to this region.”
“It also establishes the foundations for a resilient and innovative energy infrastructure that supports Senegal’s 2030 Universal Access objective and drastically reduces CO2 emissions. At Africa REN, we are convinced that sustainable energy solutions are the key to unlocking potential and fuelling growth in Sub-Saharan Africa. We are thrilled about the possibilities this groundbreaking project will introduce to the communities we serve.”
Huib-Jan de Ruijter, co-chief investment officer at FMO, underscored the impact of the Walo Storage project on ensuring a stable and sustainable energy supply in Senegal.
Tidiane Doucoure, director at Ninety One, praised Senegal’s remarkable progress in incorporating nearly a quarter of its energy mix from renewable sources in just six years.
The Walo Storage project signifies a significant stride forward, representing West Africa’s inaugural battery storage initiative dedicated to frequency regulation. Anticipating a reduction in power outages, the project aims to stabilize the local grid in a region grappling with grid constraints and the integration of sporadic energy sources.
The project embodies Africa REN’s commitment to community development with an associated inclusion program, offering training opportunities for young individuals and establishing small solar plants to power local pumping stations.
The project will adhere to the International Finance Corporation (IFC) Performance Standards, ensuring the proper management of environmental and social risks, resource efficiency, pollution prevention, and more.
Africa REN, which has been operating in West Africa since 2015, has set its sights on developing 250 MW of clean energy assets by 2026. The company has an equity investment capacity of approximately €50 million from Metier and FMO. It aims to revolutionize Senegal’s energy landscape by partnering with the national electricity utility, Senelec, one sustainable project at a time.
