Burkina Faso tenders first solar project with battery

From the newsletter

The country's Ministry of Energy announced the tender for the first phase of the solar project, which will have three projects totalling 150 MW. The funding will be provided by the World Bank to the selected independent power producers, who will construct and operate the plant for 25 years. The second phase of the project will procure 180 MW.

• Across Africa, many countries are adopting solar with battery storage, even poor countries like South Sudan and Somalia. This year, South Sudan commissioned its first solar with battery storage, and Somalia issued three tenders for similar projects.

• Renewable energy capacity in the country has more than tripled in the last seven years, reaching 241 MW, with solar accounting for more than 85% of this. This growth has been supported by the Electricity Law, which opened the market for private sector investment in 2017.

More details

• Burkina Faso has been struggling with its leadership, with coups becoming a normality in the country. This has affected service delivery, including energy access, with only 26% of the 23 million people having access to electricity. Its neighbouring countries, like Ghana and Mali, have made significant progress in solar adoption by making policy changes to streamline private investments. 

• Across Africa, there's a growing focus on renewable energy, particularly solar, at both large-scale utility projects and smaller company-led initiatives for self-consumption. Electricity policies are being updated to facilitate private sector involvement, allowing Independent Power Producers (IPPs) and even private generation. Countries like Kenya, South Africa, and Nigeria are leading the way in private generation for own consumption.

• However, the adoption of renewables comes with its challenges in grid infrastructure. The current grid is old and not designed to handle intermittent renewables. However, the adoption of renewables comes with its challenges in grid infrastructure. Burkina Faso, for instance, frequently experiences blackouts due to inadequate infrastructure. To address this, however, the country is currently undertaking grid development projects to integrate increased solar capacity, supported by $93 million in financing from the Clean Technology Fund.

• The cost of renewables has also declined to be on par with fossil fuels. Solar technology is now mature, and costs have declined to make it affordable. Lithium-ion battery prices have also declined to make battery energy storage plants a viable investment. Kamoa Copper mines in the DRC became the first large-scale consumer to adopt renewables and battery storage for baseload power supply. This is proof that the technology has matured to compete with volatile fossil fuels.

• Burkina Faso is prioritizing solar investment through the Solar Energy and Access Project, with plans to install 330 MW of new solar capacity by 2030. This expansion aims to make solar energy generation nearly equal to the country's current total installed energy capacity. Through its Rural Electrification Strategy, it targets to achieve 50% electricity access in rural areas and 95% access in urban areas by 2030. It also has in place a Master Plan that includes initiatives focused on modernising infrastructure and integrating renewable energy to facilitate these access targets.

Our take

• It is no longer primarily a question of cost, but of a country's interest in investing in renewables. Recent investment trends are proof of this. Solar and battery technologies, once considered expensive, are now comparatively competitive and in many cases, cheaper than fossil fuel power generation.

• The next phase for renewables in Africa should be to transition from piloting solar with battery storage to mainstreaming its deployment. These pilot projects offer valuable learning opportunities to streamline grid integration processes.

• Burkina Faso's bold steps in solar investment send a vote of confidence across the continent. However, the country's political regime, which has historically been unstable, poses a risk for investors, who should proceed with caution. Mitigating political risks through project insurance could offer a means of protecting private sector involvement.