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Renewable energy boosts growth in Senegal

Renewable energy boosts growth in Senegal

Image from African Business Magazine


The Senegalese government, led by President Macky Sall, has made renewable energy generation a key pillar of its power generation strategy and hopes to achieve universal access to electricity by 2025.

As part of its Plan for an Emerging Senegal (PES), the government expects increased generation capacity to help position Senegal as a middle-income nation by 2035.

A target of 15% renewable energy in Senegal's energy generation mix looks set to be accomplished ahead of the 2025 schedule, as colossal utility-sized wind and solar power plants are due to be added to the national grid within the next two years.

The country has traditionally relied on imported liquid fuels for its oil and diesel-fired plants, but recent discoveries in oil and gas reserves could make Senegal an oil exporter in the coming years.

Between 2010 and 2018, access to electricity increased from 54% to 68% according to the World Bank, and generation capacity rose from a 2012 low of 573 MW, to a current 864 MW capacity, subsequently providing cheaper tariffs for consumers.

The power market continues to benefit from a partially liberalised structure, allowing private companies to build and operate power plants, while transmission and distribution remains controlled by state-owned utility Senelec.

Lekela – a 60:40 joint venture between emerging market investor Actis and a consortium led by Mainstream Renewable Power – has initiated construction on the Taiba N'Diaye windfarm, 80km northeast of Dakar.Once complete in 2020, it will be the largest windfarm in West Africa, adding 158.7 MW to the grid and providing more than 450,000 MW hours of energy per year for 2m people.

Lekela deploys its fund in Africa, with a portfolio of three established windfarms in South Africa, and development of additional plants in Ghana and Egypt.

The company also profits from advancements in technology that will enable it to install 46 Danish-made Vestas turbines that will each be able to produce 3.45 MW of energy.Wind turbines are getting bigger, more powerful and increasing in generating capacity, enabling greater returns.

While there's an 88% connection rate to the grid in urban areas, that number falls to 40% in rural areas, according to Power Africa, the US development programme.

Which is where the importance of mini-grids and companies like Oolu Solar – who sell solar home systems and in-home chargers – will play a key role if the country is to reach its target of universal electrification by 2025.

The long-term prospects for solar generation will face a brighter future if battery storage technologies can be developed and implemented in the country.

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