Business

World Bank Approves $168 Million For Burkina Faso

Anu Bhambhani
  • The World Bank is supporting the development of solar energy in Burkina Faso through $168 million financing
  • It will support the development of 325 MW solar and 335 MWh of battery storage capacity to be competitively procured
  • Phase I of the competitive procurement round is expected to be launched in the summer of 2021 with 120 MW solar and 120 MWh storage capacity
  • The funding amount will support clean energy access for around 300 selected rural localities and 120,000 households, MSMEs and community facilities

The World Bank has approved financing worth $168 million for the Burkina Faso Solar Energy and Access Project (SEAP) to enable the country's transition to clean energy, and support clean energy access for close to 300 selected rural localities and 120,000 households, micro, small and medium enterprises (MSME) and community facilities such as schools and health centers.

In a statement, the bank added that the financing will also facilitate the competitive procurement of 325 MW of solar energy capacity with 335 MWh of battery storage. It will be developed in phases with the initial phase aiming for 120 MW solar PV and 120 MWh of storage capacity. The tender is planned to be launched in summer 2021.

Through SEAP, the bank will also try to finance key investments to strengthen grid and integrate solar production and distribution during peak demand. The World Bank's Task Team Leader for the project, Alexis Madelain said this operation will help the African nation mobilize more than $400 million in private investment in solar production and battery storage systems.

It will provide the financing from different entities – $75 million from the International Development Association (IDA) and $93 million from the Clean Technology Fund through the Sustainable Renewables Risk Mitigation Initiative (SRMI).

Back in January 2019, Burkina Faso's state electricity company Sonabel launched a 30 MW solar power tender, supported by the World Bank (see 30 MW Solar Tender In Burkina Faso).

Through its Scaling Solar Program managed by the International Finance Corporation (IFC), the World Bank is helping some African nations competitively procure solar power with Niger being the latest addition (see Niger Enters World Bank's Scaling Solar Club). After this financing project, you might wonder if Burkina Faso is next on the list.

In February 2020, the IFC said it will explore energy storage potential of Burkina Faso with a view to expand solar power generation here (see IFC To Assess Energy Storage Potential For Solar In Burkina Faso).