AMEA Power builds 50 MW solar plant in Ivory Coast

From the newsletter

Dubai-based energy company AMEA Power has commenced construction of a 50 MW solar PV project in Ivory Coast. The $60 million project, financed by the Dutch bank FMO and German Development Finance Institution DEG, will be executed by its subsidiary AMEA Goutougo. This is AMEA Power’s first project in Ivory Coast.

• Ivory Coast has set a target of generating 42% of its electricity from renewable sources by 2030. This goal is driving investment and development in the renewable energy sector.

• Last month, it also broke ground for the construction of a 52.4 MW solar plant–its largest to date–with completion expected by the end of 2025.

More details

• Once completed, the project will power about 358,000 households. The company is expanding its African presence in renewable energy projects, mainly in solar and wind. It currently has active projects in Egypt, Mali, Uganda, and South Africa, totalling over 3 GW.

• Ivory Coast relies heavily on fossil fuel generation, which accounts for about 70% of its electricity share, followed by hydropower at 25%. Solar energy is an emerging source of electricity but is seeing increased investments, and installed capacity is expected to reach 80 MW by the end of the year.

• Last year, the government shared plans for constructing 12 solar plants with a total capacity of 678 MW by 2030. Though still far from this goal, progress is being witnessed in investments, with the construction of two major utility solar projects kicking off since the start of 2025.

• Just like in many other African countries, Ivory Coast has made great progress in connecting much of its urban population, but the rural population lags behind, with less than half connected to electricity. The government rolled out the Electricity for All program in 2022 to connect 71,660 households alongside other programs like the National Rural Electrification Programme (PRONER). These rural electrification projects are worth approximately $334 million. Ivory Coast plans to utilise Public-Private Partnerships (PPPs) for their implementation.

• The government has also implemented feed-in tariffs to incentivise private sector investment in renewable energy projects. These tariffs provide a guaranteed price for electricity generated from renewable sources, making investments more attractive.

Our take

• Renewables like solar, despite being less costly than other technologies, require battery storage systems to ensure grid stability. So, investments in solar present both a challenge and an opportunity.

• The challenge lies in the need for battery storage systems to address the intermittent nature of solar power and maintain a reliable electricity supply. This adds to the overall cost and complexity of solar projects. Though battery cost is declining and expected to reduce overall project costs.

• However, this challenge also presents an opportunity for investors. With more solar power installed, demand for battery storage solutions arises. This creates a market for companies that provide battery storage technologies and those that finance renewable energy projects.