The World Bank has approved $168 million financing towards Burkina Faso’s efforts to increase access to electricity in rural areas and support the country’s transition to clean energy.
$75m of that financing comes from the International Development Association while $93m comes from the Clean Technology Fund via the Sustainable Renewables Risk Mitigation Initiative.
Maimoun Mbow Fam, World Bank country manager for Burkina Faso said the new project is fully in line with the Bank’s Sahel strategy to double electricity rates by 2025. Their efforts are particularly aimed at rural areas and creating 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’s Solar Energy and Access Project (SEAP) is meant to improve access solar energy and increase the mobilisation of private finance to increase access to electricity The project will support the electrification of about 300 selected rural localities and the connection to modern, reliable electricity services of about 120,000 households, micro, small and medium enterprises and community facilities such as schools and health centres.
The Project will also finance key investments to strengthen the grid and integrate solar productions and distribution during peak demand. It will also facilitate the competitive procurement of 325MWp of solar energy with 335MWh of battery storage to be developed in phases, with an initial phase of 120MWp and 120MWh of battery storage to be launched summer 2021.
Alexis Madelain, World Bank task team leader said the new operation will help Burkina Faso mobilise more than $400m in private investment solar production and innovative battery storage system. “It will also boost the country’s solar potential, reduce electricity supply cost and thus expand access to electricity services in rural areas, without increasing recurring subsidies for the sector.”