- Scatec Solar recently signed amendments to the 33 MW Segou solar project in Mali.
- The company will build, own and operate the project, in addition to providing engineering, procurement, and construction services.
- The Norwegian Agency for Development Cooperation (NORAD) will provide additional funding.
Scatec Solar and its partners has signed an amendment to the Segou project concession agreement with the Government of Mali. The signing took place in the presence of Mali’s Prime Minister and Minister of Energy, as well as the Norwegian Prime Minister as part of her visit to Bamako, Mali. The project has been awarded economic support from Norad (The Norwegian Agency for Development Corporation), both related to project development and for grid infrastructure investments that will be transferred and operated by EDM after the project is completed.
“We are pleased to move this project forward together with the Government and our partners. The solar plant will be supplying about 5% of Mali’s electricity, helping economic growth and development in the country”, says Raymond Carlsen CEO of Scatec Solar.
International Finance Corporation (IFC) and African Development Bank (AfDB) will provide non-recourse project finance for the project. The financing includes a concessional loan from the Climate Investment Funds under the Scaling Up Renewable Energy Program of approximately USD 20 million.
The project signed a Power Purchase Agreement (PPA) with Electricité du Mali (EDM), the national utility in July 2015. Scatec Solar will build, own and operate the solar power plant with a 51% shareholding. IFC Infraventures and Africa Power will hold the remaining part of the equity. Scatec Solar will also be the Engineering, Procurement and Construction (EPC) provider and will provide Operation & Maintenance as well as Asset Management services to the power plant.
Annual production from the 33 MW solar power plant is expected to be approximately 57 GWh and the clean energy produced by the plant will contribute to avoid 33,000 tonnes of CO2 annually.
Author: Bryan Groenendaal