Senegal starts construction of a 60 MW solar hybrid plant

From the newsletter

AXIAN Energy, a Madagascar-based energy firm, has begun construction on the 60 MW NEA Kolda solar project in Senegal. The project will have a battery storage capacity of 72 MWh and will be one of West Africa's largest solar plants with battery storage. It is funded by a $96 million loan package from private equity and development finance institutions.

• African countries are increasingly addressing grid intermittency by opting for solar projects integrated with battery storage. Senegal joins Ghana, Chad, Egypt, Morocco, and South Africa, all of which have solar-plus-storage projects in the pipeline this year.

• Renewables Rising has tracked projects totalling over 3,500 MW in West Africa since February 2025. These renewable energy projects are mainly in Nigeria, The Gambia, Ghana, and the Ivory Coast.

More details

• AXIAN Energy announced the start of work on May 22nd for the NEA Kolda solar project. It will be situated in the Kolda region of southern Senegal and power more than 25,000 households, benefiting approximately 235,000 people. 

• The project has total funding exceeding $120 million. A significant portion of this comes from a $96 million loan package secured from the Emerging Africa Infrastructure Fund (EAAIF), the Dutch development bank FMO, and Germany’s DEG. The engineering, procurement and construction (EPC) contract was awarded in April 2025 to a joint venture between Voltalia and Entech Smart Energies.

• Senegal is aiming to achieve 100% national electrification from the current national electrification rate of 84%. It also plans on adding 200 MWh of battery energy storage systems (BESS) across 5 sites by 2026 to stabilise the grid. Its backers say this project’s importance extends beyond capacity, directly contributing to Senegal’s energy security and economic development.

• The country has made significant progress in renewables over the past few years. As of 2025, Senegal’s energy mix comprises 30% renewables, up from 22% in 2023, driven by solar, wind and biomass. It is also on track to meet its 40% renewable target by 2030, anchored by the Plan Sénégal Émergent (PSE) and the National Renewable Energy Action Plan (NREAP).

• Its targeted policy framework combines tax breaks for clean tech, feed-in tariffs to de-risk private investment, off-grid solar prioritisation, and a forward-looking green hydrogen strategy that creates a cohesive ecosystem to accelerate its 2030 renewable targets while positioning itself as a regional energy transition leader through EU and German partnerships.

• The project’s emphasis on community benefits is a move that can ensure long-term sustainability and acceptance of such large-scale infrastructure. By addressing local needs and prioritising inclusive energy access, AXIAN Energy claims to build a model that fosters shared prosperity and strengthens the social license to operate for future renewable energy developments on the continent.

• The involvement of multiple international development finance institutions reflects a growing recognition of the untapped potential of renewable energy in Africa. These institutions provide capital and crucial de-risking mechanisms, attracting further private investment into the sector. This collaborative financing model is essential for mobilising the capital required to achieve Africa's ambitious energy transition goals.

Our take

• Could West Africa be the new southern Africa in renewable projects execution? The evidence suggests 'yes'. The region’s urgent need to electrify rapidly growing and urbanising populations, and increasingly stable regulatory environments incentivising private investment, makes it a strong contender for a future renewables powerhouse.

• Senegal's energy sovereignty, much like Africa's renewables revolution, is undeniably contingent on the widespread incorporation of solar-plus-battery projects. The critical challenge of intermittency inherent in many renewable sources and the pre-existing grid challenges across the continent demand robust Battery Energy Storage Systems as a non-negotiable component of every new installation.

• The next step for Africa's renewable energy journey is making use of its abundant mineral resources for the localised production of lithium-ion batteries. With vast reserves of cobalt, lithium and graphite – essential components for BESS – Africa has an unparalleled opportunity to not only power its own transition but also to establish itself as a hub for clean energy manufacturing.