People
c. 58,000 people from grid-tied households are expected to benefit from this project with improved access to electricity.
| Investee Company | Africa REN |
| Sector | Power and Energy |
| Country | Senegal |
| Total Project Cost | EUR 42m |
| PIDG Commitment |
|
| Dates of EAAIF involvement |
|
Senegal has expanded renewable energy capacity, but system reliability remains exposed to intermittency and regional supply constraints —especially in northern areas far from major generation and grid infrastructure. While solar is increasingly competitive, its contribution to system reliability is limited without storage, particularly during evening peak demand when generation falls but demand remains high.
Battery-backed solar projects can be difficult to finance in frontier contexts due to limited operational track record, technology and integration risk, and the complexity of structuring bankable long-term PPAs that satisfy lenders. These constraints have slowed adoption of storage-enabled renewables despite their importance for long-term grid resilience and energy security.
PIDG, through EAAIF, provided long-term senior secured debt (alongside FMO) to enable the Walo project – a 16MWp solar PV + 10MW/20MWh battery energy storage system facility – to reach financial close under a fully project-financed structure. This helped reduce perceived bankability barriers and establish a credible precedent for financing solar-plus-storage in West Africa where the utility provides an availability payment to help fund the costs associated with the battery storage.
The integrated battery system allows excess daytime generation to be stored and dispatched during peak periods, strengthening grid stability and reducing the need for fossil-fuel-based peaking generation. Grant support further strengthened feasibility and helped optimise the project’s storage integration and delivery outcomes.
c. 58,000 people from grid-tied households are expected to benefit from this project with improved access to electricity.
The installation is expected to avoid c. 28,000 tCO₂e per annum.
Businesses are expected to benefit from improvements in quality of service to the grid.
It is expected that this transaction will have a significant impact on the efficiency Senegalese energy sector; with replication of the availability payment structure expected, such that battery storage is part of subsequent power purchase agreements.
Walo Solar will be providing XOF 30m through PAMECAS, a local micro-finance agency, to finance a women’s fund providing trainings and support in financial management. This is as compensation to affected stakeholders – primarily women – dependant on the project land for communal grazing.
