Africa REN, a pan-African renewable energy developer, has announced the reorganization of shareholder ownership in Senegal’s Senergy 2 solar power plant. Located in Bokoul in the Saint-Louis region, the 25 MW solar plant became the first utility-scale solar plant operated by an independent power producer to be connected in West Africa when it was inaugurated in October 2016.
Initially owned by Africa REN Invest (ARI), the first renewable energy investment vehicle of Africa REN, the solar power plant has now undergone a change in shareholder ownership. In 2021, Africa REN set up another investment vehicle, Africa REN Energy (ARE), with the support of the Dutch development bank FMO and equity fund manager Meitier Sustainable Capital. ARE has now acquired a 60% stake in the solar project from ARI, while the Senegalese public institutional investor CDC has acquired the remaining 40% stake in exchange for its shareholding in Africa REN Invest.
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This reorganization will enable Africa REN to fully divest its first investment vehicle, and 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 that this transaction showcases the dynamic form of the solar energy sector in West Africa and the attractiveness of investors in the sector.
The investment vehicles of Africa REN have been pioneers in solar energy in Sub-Saharan Africa, and this strategic transaction will enable them to fully divest ARI and return funds to investors. According to Rinse Geuzendam, a senior official at FMO, the West African region has significant opportunities for renewable energy development, and FMO’s partnership with Africa REN and Metier has successfully delivered clean, sustainable energy projects that have positive impacts across the region.
The Senergy 2 solar power plant is a testament to the Senegalese government’s energy mix policy. The electricity generated by the plant is sold to the power utility Senelec through a 20-year power purchase agreement and provides energy to around 2 million people in the country while reducing 27,000 carbon dioxide emissions annually.
