Africa REN, a pan-African renewable energy developer, has announced the shareholder reorganization of the Senergy 2 solar power plant in Senegal. Located in Bokoul in the Saint-Louis region, the power facility was inaugurated in October 2016 and became the first utility-scale solar plant operated by an IPP to be connected in West Africa.
The 25 MW solar plant was under the ownership of Africa REN Invest (ARI), the first renewable energy investment vehicle of Africa REN. In 2021, Africa REN set up another investment vehicle, Africa REN Energy (ARE), with financial support from the Dutch development bank FMO and equity fund manager Meitier Sustainable Capital. ARE now acquired 60% of the shareholding in the solar project from ARI.
The rest 40% stake is acquired by the Senegalese public institutional investor CDC in exchange for the share it held in Africa REN Invest. The latest transaction will allow Africa REN to fully divest its first investment vehicle. The solar power plant will continue to be operated by the company’s service-providing arm Africa REN Operations (ARO).
Gilles Parmentier, CEO of Africa REN, said, the shareholder reorganization exhibits the dynamic form of the solar energy sector in West Africa and the attractiveness of the investors in the sector. The investment vehicles of Africa REN’ have proved as the pioneer in solar energy in Sub-Saharan Africa and this strategic transaction enables them to fully divest ARI and return funds to the investors.
According to an FMO’s senior official, Rinse Geuzendam, the West African region has huge opportunities in terms of renewable energy development. FMO’s partnership with Africa REN and Metier has successfully delivered clean, sustainable energy projects that have positive impacts across the region.
Senergy 2 is a testament to the energy mix policy of the Senegalese government. The electricity produced by the solar PV plant is sold to the power utility Senelec through a 20-year power purchase agreement. The plant provides the energy needs of around 2 million people in the country and reduces 27,000 carbon dioxide emissions per year.