Ouagadougou, Burkina Faso, July 30th, 2018: With financial support from the Swedish Embassy in Ouagadougou, The Ministry of Energy of Burkina Faso in collaboration with the Africa Enterprise Challenge Fund (AECF) have today launched the Renewable Energy and Adaptation to Climate Technologies - Efficient Electrification Project (REACT EEP). This is a two year pilot project worth USD $5 million that will provide an opportunity for households and Small and Medium Enterprises (SMEs) to access solar energy as primary or back up installations. The subsidy that will be provided to households is 70% and 30% for SMEs for the acquisition of equipment. This project will be managed by the AECF.
“Burkina Faso has an estimated population of 19.7 million people, with a national electricity access rate of 18.8%. It is projected that with the launch of EEP, the project will provide alternative access to approximately 600 households and SMEs connectted to the national grid in Ouagadougou within the next two years. The launch of this project is timely and the Government of Burkina Faso looks forward to working with AECF and the Swedish Embassy to take this initiative forward,” said Dr. Bachir Ismael Ouedraogo Minister, Ministry of Energy, Burkina Faso.
While Burkina Faso’s electricity mix includes electricity imports and hydropower, fossil fuel generation still accounts for roughly 63% of the total electricity mix. Grid reliability is vulnerable to interconnection problems, demand from customers exceeding supply and the state of grid infrastructure. To mitigate this situation the Government of Burkina Faso requested the Swedish Embassy in Ouagadougou to support the implementation of the Efficient Electrification Project.
“The average customer in Ougadougou experiences power outage equivalent to three months translating to 600 hours of lost productivity. As development partners in Burkina Faso, we believe in supporting Government efforts that seek to address key development challenges like energy access. REACT EEP will address this by funding the installation of Solar PV systems to households and SMEs in Ouagadougou as back up systems to the main grid, “ said, Richard Bomboma, Counsellor, Embassy of Sweden in Ouagadougou.
Burkina Faso experiences about 180 hours of power rationing every year leading to loss of productive time for business which depend on electricity. Through the installation of the back-up solar systems, the project seeks to free up and complement electricity supply capacity in Ouagadougou, to enable increased energy supply to the large industry and increase rural access to electricity for the development of the local economy.
“The selection of AECF to implement this project is an endorsement of our vast experience in financing renwable energy projects and the success of the challenge fund approach that AECF uses to support private sector to catalyse innovation and growth of markets. Our experience over the years shows that for the project to reach approximately 600 households and SMEs connectted to the national grid in Ouagadougou within the two years, solar electrification presents the best technology option due to the country’s geographical location and the existing supporting policy framework on solar products by the government,” said Daniel Ohonde, CEO, The AECF.
Annually, Burkina Faso receives about 3,000 to 3,500 hours of peak sunshine and this has the potential to generate an average of 5.5 kWh/m2 per day. The potential of solar PV goes beyond its contributions to the centralized grid. This is further supported by the Europe Union that decentralized off-grid, primarily solar, would be the optimal solution for 65% of households without access in Burkina Faso.
Over 8 years, AECF REACT has attracted US $166 million worth of investments in 78 private sector companies within 19 countries in sub Saharan Africa.
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