NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Tuesday, July 14, 2015

A historic agreement to Build-Own-and Operate West Africa’s first utility-scale solar power plant has been signed by Norwegian company Scatec Solar and its partners, the Malian Ministry of Energy and Water and Electricité du Mali (EDM), the electricity utility of Mali. To be located near the ancient city of Segou in South-East Mali, 240 kms from Bamako, the 33 MW solar project is being developed in partnership with IFC InfraVentures and the local developer Africa Power 1.

Speaking on the occasion, the Malian Minister of Energy and Water, Mr. Mamadou Frankaly Keita said “This landmark agreement signals the Government’s commitment to meet the nation’s growing energy demand and to provide clean, renewable and affordable energy to our people”.

The agreements include a Power Purchase Agreement (PPA) between EDM and Segou Solaire SA, the local project company controlled by Scatec Solar, for the delivery of solar power over the next 25 years. The PPA with the utility is complemented by a Concession Contract with the Government of Mali, granting license to Segou Solaire to operate.

With this PPA, Scatec strengthens its position as the leading, integrated solar IPP (Independent Power Producer) in Africa. The Oslo-headquartered company’s CEO Raymond Carlsen says “This project is another great milestone for Scatec Solar. After several years of development efforts in the region, we can now move forward with the first utility-scale solar plant in West Africa. The Malian Authorities have demonstrated decisive will to tackle the nagging issue of power supply.”

Scatec Solar (‘SSO) will own 50 percent of the power plant and World Bank’s project development fund, IFC InfraVentures will hold 32.5 percent, while the local project development company, Africa Power 1, headed by Dr Ibrahim Togola, will hold 17.5 percent. Scatec Solar will construct the plant, and in addition provide operation and maintenance services after the plant is connected to the grid.