This is assuredly one of the most important financing packages released for the implementation of the “Desert to Power” initiative. AfDB, which is at the origin of this program to develop the solar potential of the Sahel, is receiving an investment of USD 150 million dollars from the Green Climate Fund (GCF). The funding will go to the “Desert to Power G5 Sahel” facility.
As part of the AfDB’s initiative, the facility targets to support the G5 Sahel countries (Burkina Faso, Chad, Mali, Mauritania and Niger) in adopting low-emission power generation by tapping into the region’s abundant solar potential. Desert to Power G5 is expected to mobilize USD 966 million over its 7 year implementation period. According to the AfDB, the initiative will reduce emissions by 14.4 million tons of carbon dioxide equivalent.
Several Components for the Effectiveness of the Mechanism
“Desert to Power G5 Sahel is an important rise to the Desert to Power initiative. It will stimulate private sector investment in the development of solar generation capacity in the G5 Sahel countries. This will help realize the AfDB’s vision that the Desert to Power Initiative is an integral part of the solution to combat climate change in the Sahel. The timing of the approval is also perfect, just before COP26,” said Kevin Kariuki, AfDB Vice President.
The Desert to Power G5 Sahel Facility is built around 3 components, the 1st of which focuses on investments in the electricity grid and in storage solutions to reduce the risks associated with solar power plants built by independent power producers. The 2nd component of the facility will provide concessional financing and guarantees for new private power plants to increase solar power generation capacity by more than 500 Megawatt.
The AfDB has set up a 3rd component to provide technical assistance to support “the creation of a clear and predictable environment for private sector solar investments and the development of adequate capacity of national institutions in the G5 Sahel countries. For its part, the GCF believes its funding will encourage further investment, including private sector investment in the Desert to Power initiative. The AfDB is targeting 10 Gigawatt of generation capacity through public, private, on-grid and off-grid projects by year 2030.