DEG to finance solar energy and energy storage in Senegal

The infrastructure in the rural region of Casamance, in the south of Senegal, is greatly lacking. Many households are not connected to the power grid and the supply of electricity – which, for the most part, has been produced using imported fossil fuels to date – remains unstable.

DEG is now investing in two photovoltaic systems with battery storage operated by Axian Energy. This is in order to help the region develop and to improve its electricity supply and also to increase the use of renewable energies there. The overall investment volume is around EUR 100 million, of which EUR 23 million will be provided by DEG. Other investors are Dutch development finance provider FMO and the Emerging Africa and Asia Infrastructure Fund (EAAIF).

Contribution to improving security of supply and grid stability

Scheduled for completion in 2026, the photovoltaic systems in the southern Senegalese region of Kolda will have an annual capacity of 60 MW. This means that they will be able to provide an estimated 235,000 people with green electricity. The 72 MWh battery storage will help to safeguard the supply of power for up to three hours during evening peak times and increase the stability of the power grid. In this way, renewable energies will be integrated into the power supply, helping Senegal to produce at least 40% of its electricity from renewable energy sources by 2030.

First DEG commitment for solar battery storage in Africa

DEG Management Board member Monika Beck explains: “This financing allows us to play an important role in helping to electrify rural areas in Senegal. The project is a prime example of the transformation from generating energy from fossil fuels towards cleaner, more sustainable and more reliable energy. A stable power grid is decisive for the region’s development, paving the way for investments and jobs.”

Axian Energy CEO Benjamin Memmi said: “The solar farm project in Kolda reflects our dedication to contribute to energy inclusion in Senegal and across the continent, in line with the United Nations’ Sustainable Development Goals. Additionally, by integrating innovative battery storage technology, we are setting a new standard for sustainable energy projects in the region, enhancing grid stability and optimizing the use of renewable resources.”

As one of the largest development finance providers in Europe, DEG has been focusing even more on high-impact and environmentally friendly investments since 2022. Its renewable energies portfolio is currently in the region of EUR 1 billion. In 2023, the energy providers co-financed by DEG produced approximately 32 terawatt hours (TWh) of electricity from renewable energy, meeting the needs of over 32 million people and preventing 22 million tonnes of carbon emissions.