Business

25-Year PPA Secured For 40 MW AC Guinea Solar Plant

Anu Bhambhani
  • Solveo Energie and InfraCo Africa have announced signing a 25-year PPA for 40 MW AC solar project in West Africa's Guinea
  • PPA has been signed with local utility EDG; project is expected to enter construction in early 2022
  • The 40 MW AC solar plant will complement energy generation from nearby located 75 MW hydroelectric plant

A 45 MW DC/40 MW AC solar power plant coming up in the African nation of Guinea as the country's first grid connected PV project has secured a long term power purchase agreement (PPA) with local electricity utility Electricité de Guinée (EDG). The project partners are currently in the process of selecting an EPC contractor, while entering initial discussions with lenders.

EDG has entered the PPA with French solar PV project developer Solveo Energie and multi-government funded investor InfraCo Africa, thereby ensuring the way for financial viability of the project that has been in the making since January 2018 when InfraCo Africa committed $3.1 million funding (see Guinea's First On Grid PV Plant Secures $3.1m).

Construction on the project to come up near Linsan in Kindia region, is still a year away as the partners expect to break ground on site in early 2022 and inject the first megawatt into the Guinean electricity grid from 2023, shared Solveo Energie.

The Khoumagueli Solar Project is designed to complement power generation of 75 MW Garafiri Hydroelectric plant as the solar facility is expected to mitigate against the impact of fluctuating rainfall on hydro power generation. It will be built by a special purpose company called Khoumagueli Solar S.A.

"The PPA signing is a key milestone for the Khoumagueli Solar project which will deliver reliable, affordable power to Guinea's homes and businesses," said InfraCo Africa's CEO Gilles Vaes. "We are also exploring other project opportunities in the country and look forward to deepening our involvement in Guinea."

Another European company, CleanPower Generation GmbH of Germany operating in Sub-Saharan Africa, secured a financing agreement with a fund of Danish fund manager Frontier Investment Management Company in October 2020 to develop 3 solar power projects of 82 MW capacity in Guinea (see 82 MW Solar PV Coming Up In West Africa's Guinea).