The Emerging Africa Infrastructure Fund (EAIF) has committed €29 million ($34 million) for its 1st green energy project in Burkina Faso. It will provide this facility to French solar power company Urbasolar for a 30 MW solar project coming up in the African country.
The €29 million by EAIF, the sole lender for the project, represents 80% of the capital needed for the 30 MW project construction whose total development cost is coming to an estimated €35.4 million ($42 million). Urbasolar can expect financial close on the facility by Q2/2021.
The financing will support the ongoing construction of the project near the town of Pa, close to the capital city of Ouagadougou (see Construction Begins On 30 MW PV Project In Burkina Faso). Project construction is likely to be completed within 18 months, with Urbasolar operating the plant on completion.
All power generated by the 30 MW project is contracted to be purchased by Burkina Faso's national utility La Société National D'électricité Du Burkina Faso (Sonabel). The country aims to generate 200 MW of solar power by 2021, looking up at the technology to enable its transition from being a fossil fueled power generation economy to a renewable energy powered one, and the 30 MW Urbasolar project is one of the 1st of new green energy plants in the country.
EAIF said close to 280 MW green energy capacity is to be commissioned in Burkina Faso over the next 3 years. In February 2020, the International Finance Corporation. (IFC) said it will explore the country's energy storage potential with an eye to expand solar power generation here (see IFC To Assess Energy Storage Potential For Solar In Burkina Faso).