Solar panel. Author: Oregon Department of Transportation. License: Creative Commons
Norway’s Scatec Solar ASA (OSL:SSO) said on Thursday it has signed a deal to build, own and operate a 33-MW solar power plant in Mali that would be West Africa’s first utility-scale photovoltaic (PV) park.
Scatec, with a 50% stake, will realise the EUR-52-million (USD 58m) project in partnership with the World Bank's IFC InfraVentures and local developer Africa Power 1, which in turn will hold 32.5% and 17.5% stakes, respectively.
The 33-MW Segou solar farm will consist of some 130,000 PV modules capable of generating about 60 GWh of electricity per year, or enough to meet 5% of Mali’s total electricity consumption. The plant will sell its output under a 25-year power purchase agreement (PPA) with local utility Electricite du Mali (EDM).
The International Finance Corp (IFC) is expected to arrange EUR 23 million in debt funding for the project, which has also received a concessional loan from the Climate Investment Fund. The project partners will provide 25% of the needed funding as equity.
Scatec anticipates the Segou scheme to reach financial close by the end of the year.