Desert to Power (D2P) initiative that is meant to establish solar energy production resources in the G5 Sahel countries (i.e. Burkina Faso, Chad, Mali, Mauritania, and Niger) will benefit from US$ 150M funding provided by the Green Climate Fund (GCF).
The financing package, which is one of the most important financing packages released for the implementation of the initiative so far, will be disbursed to African Development Bank’s Desert to Power G5 Financing Facility. Noteworthy, the African Development Bank (AfDB) is leading the Desert to Power (D2P) initiative.
Overview of the Desert to Power G5 Sahel Financing Facility
The Desert to Power G5 Sahel Financing Facility’s objective is to assist Burkina Faso, Chad, Mali, Mauritania, and Niger to adopt a low emission power generation path by making use of the region’s abundant solar potential. It is set to mobilize US$ 966M over a seven-year implementation period, and lead to substantial CO2 emission reductions – projected at over 14.4 million tCO2equ.
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The facility consists of both public and private sector sub-projects that will be implemented under three components. The first component entails grid investments and investments in storage solutions to de-risk solar IPPs and pave the way for the uptake of a regional solar market, while the second entails the provision of concessional finance and guarantees for new solar independent power producer plants to add over 500 megawatts of solar energy generation capacity.
The last component involves technical assistance to support the creation of a clear and predictable environment for private sector solar investments and the development of an adequate capacity of national institutions in the G5 Sahel countries.