- Africa REN, has announced the successful financing of its €32 million Walo Storage project in Senegal.
- Africa REN develops, finances and operates sustainable infrastructure to increase access to electricity and essential services for people in sub-Saharan Africa.
Walo Storage represents a major breakthrough as 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 16MW from green energy sources and is anticipated to reduce CO2 emissions by 17,000-21,000 tons per year.
This investment further aligns with Africa REN’s commitment to contribute positively to the communities in which it operates. The Walo Storage project comprises an inclusion program that involves training for young people and the construction of small solar plants for local pumping stations.
The project will comply with the IFC Performance Standards, and will ensure the effective management of environmental and social risks and impacts, resource efficiency, and pollution prevention, among others.
The financing for the project is provided by:
- FMO, through a €11m loan, and an additional €8m loan 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.
- An €11m loan from EAIF, a Private Infrastructure Development Group (“PIDG”) company, and a $1.5m (equivalent in EUR) of a Viability Gap Funding (VGF) extended by PIDG Technical Assistance.
Author: Bryan Groenendaal
