World Bank approves $168m financing for solar energy production, rural electrification in Burkina Faso
The World Bank approved financing of $75 million from the International Development Association (IDA), and $93 million from the Clean Technology Fund via the Sustainable Renewables Risk Mitigation Initiative (SRMI), to help increase access to electricity in rural areas in Burkina Faso, and support the country transition to clean energy.
Maimouna Mbow Fam, World Bank Country Manager for Burkina Faso, said, ''This new project is fully in line with our Sahel strategy to double electricity access rates by 2025, particularly in rural areas, and create conditions for more private financing in the energy sector. The project supports the government’s energy policy, which has for years sought to promote a hybrid system of energy production, particularly solar energy.''
Burkina Faso Solar Energy and Access project (SEAP), aims to improve access to solar energy and increase the mobilization of private financing for greater access to electricity. The project will support the electrification of approximately 300 selected rural localities and the connection of 120,000 households, micro, small and medium enterprises (MSMEs), and community facilities such as schools and health centers to modern, reliable electricity services.
It will also finance key investments to strengthen the grid and integrate solar production and distribution during peak demand. In addition, it will facilitate the competitive procurement of 325 MWp of solar energy with 335 MWh of battery storage to be developed in phases, with an initial phase of 120 MWp and 120 MWh of battery storage to be launched summer 2021.
Alexis Madelain, World Bank Task Team Leader for the project said, ''This new operation will help Burkina Faso mobilize more than $400 million in private investment in solar production and innovative battery storage systems. It will also boost the country’s solar potential, reduce electricity supply costs, and thus expand access to electricity services in rural areas, without increasing recurring subsidies for the sector.''