Norwegian company Scatec Solar and its partners have signed a Build-Own-Operate agreement for the 33 MW Segou solar project in South-East Mali.
The Malian Ministry of Energy and Water and Electricité du Mali (EDM) signed off on the project being developed by Scatec Solar in partnership with IFC InfraVentures and local developer Africa Power 1.
To be located near the ancient city of Segou in South-East Mali, 240 km from Bamako, the project will have a generating capacity of 33 MW. The solar photovoltaic (PV) plant will consist of roughly 130,000 PV modules on a fixed tilt system and will connect to an existing transmission line.
Electricité du Mali (EDM) has signed a Power Purchase Agreement (PPA) with Segou Solaire SA, the local project company controlled by Scatec Solar, to purchase the estimated 60,000 MWh of annual production for a period of 25 years.
With a total investment cost of approximately US$55 million, Scatec Solar will own 50% of the power plant and the World Bank's IFC InfraVentures will hold 32.5%, while the local project development company, Africa Power 1, will hold 17.5%.
Scatec Solar will construct the plant and provide operation & maintenance services once the site is connected to the grid.
The potential power generated by the plant represents five percent of Mali's total electricity consumption, equal to the electricity consumption of 60,000 households.
Mamadou Frankaly Keita, the Malian Minister of Energy and Water, has commented:
"This landmark agreement signals the Government's commitment to meet the nation's growing energy demand and to provide clean, renewable and affordable energy to our people."
Global Head of IFC InfraVentures, Alain Ebobisse, stated the following:
Scatec Solar and EDM will jointly register the project with the United Nations Clean Development Mechanism to allow generation of revenues from the sale of international carbon credits.
"One of the pillars of the World Bank's Country Assistance Strategy for Mali is to increase access to energy, a development fundamental. IFC InfraVentures' partnership with Scatec Solar and Africa Power 1 helps advance this strategy through Scatec Segou, part of a series of renewable energy projects we are developing in the country."