No import duties & taxes for solar in Cameroon; Husk Power raises EIB financing from the EIB; BPC announces construction of Mmadinare Solar Cluster; Senegal's Sen'Eau contracts TotalEnergies for solar projects.
Cameroon's push for solar energy: The African nation of Cameroon has exempted solar panels from import duties and taxes with effect from January 1, 2024. The exemption is also extended to drinking water, biomass, and wind energy production for a period of 24 months. The government included the provision in its Finance Law 2024 published in December 2023. Recently, the country's Ministry of Finance released a circular specifying the list of selected equipment that will be exempted, announced the Association of Off-Grid Electrification Professionals of Cameroon (APELCA). The aim is to support drinking water, renewable energy, health, livestock and fisheries as the priority sectors, according to the government.
With a hydropower heavy renewable energy powered system that's dependent on droughts and insufficient rainfall, Cameroon will need to diversify its electricity sources. The country has been reported to have power outages impacting businesses. Earlier, according to a Thomson Reuters Foundation news, the government had provided a 10-year elimination of several taxes, including stamp duty on renewable energy equipment. It had also reduced customs duties on imported renewable products. From the beginning of 2024, it has now exempted renewable energy equipment entirely from paying import duties and taxes.
$20 million for Nigeria solar: Rural and peri-urban Asia and Sub-Saharan Africa (SSA) focused clean energy company Husk Power Systems has raised $20 million from the European Investment Bank (EIB). The company plans to use this debt financing to scale its operations in Nigeria, the world's 'largest' offgrid market. Husk claims it is the 1st time that a minigrid company has accessed corporate-level debt, and it is also the single largest debt financing for minigrids in SSA. Proceeds will enable Husk to construct community solar minigrids in Nigeria, install rooftop solar for commercial and industrial (C&I) customers and expand its appliance sales to households and small businesses. The company says it will also be able to scale the value-added services such as agro-processing and e-mobility. Husk aims to expand its more than 20 solar minigrids in the country to a minimum 500 within the next 5 years. This EIB financing is part of a $100 million series D financing round Husk announced in October 2023 (see Africa Solar PV News Snippets).
100 MW solar plant in Botswana: Botswana has announced the construction of a 100 MW solar power plant. Construction of phase I of the Mmadinare Solar Cluster was officially launched by Botswana's President Mokgweetsi Masisi recently. Botswana Power Corporation (BPC) said the project is expected to be delivered in 2025. Norwegian company Scatec had announced the capacity of the Mmadinare Solar Complex as 120 MW. It reached financial close on the initial 60 MW in December 2023. The Norwegian company estimates capital expenditure for the 120 MW project as BWP 1.4 billion ($104 million) with an estimated EPC contract value of BWP 1.2 billion ($90 million). Financing for 60 MW in phase I is being provided by Botswana's Rand Merchant Bank and the World Bank's International Finance Corporation (IFC).
Solar for water in Senegal: Senegalese drinking water supplier Sen'Eau has signed a contract with France's TotalEnergies for the development of 2 solar PV power plants in the country with a combined 20 MW capacity. The French company, through its subsidiary TotalEnergies Distributed Generation Middle East Africa (TotalEnergies DG MEA), will develop the Mékhé Solar Plant in Méouane in Thies region. The annual power generation of 20 GWh from the project will cover 32% of the energy requirements of the Mékhé booster. The Keur Momar Sarr Power Plant will generate 25 GWh.