82 MW solar project for Guinea
CleanPower Generation develops renewable energy solutions for sub-Saharan Africa. The German company is currently working on an 82 MW solar project in Guinea, one of the largest independent solar power production projects in the West African region. The project, spread over two sites, will bring clean and cost-effective energy to the port city of Kamsar via a mini-grid with 12 km of grid extension and to the city of Boké via a grid-connected solar plant.
Reliable and stable power supply through affordable and clean energy will reduce the CO2 footprint for mining and other energy-intensive industries, help small and medium businesses grow, and open opportunities for a new part of the population through access to energy. Translated into household equivalents, the 82 MW project could support more than 360,000 families. Overall, the solar plants will contribute substantially to Guinea’s goal of producing 30% of its energy from renewable sources by 2030 as part of the country’s commitment to the Paris Agreement.
GET.invest has been supporting CleanPower Generation since July 2019. The programme’s Finance Catalyst advisors focused on connecting the company with both public and private debt and equity financiers, as well as designing a financial model which could meet their expectations and speak the language of all parties.
The GET.invest Finance Catalyst advisors were also actively involved in the negotiation process of the concession agreement for the solar plants. These key milestones paving the way for construction were ratified in November 2019 by the Guinean Minister of Energy on the sidelines of the G20 Compact with Africa summit in Berlin.
In 2020, CleanPower Generation signed a financing agreement with Frontier Energy, a fund of the Frontier Investment Management Company. According to Frontier Energy, the project is very attractive with many benefits for the end-users in Boké and Kamsar.
The support to and financing of CleanPower Generation’s project illustrates the toolbox of European support instruments: while technical assistance was for instance provided by GET.invest, the financing from Frontier Energy is also rooted in a joint European undertaking, the Global Energy Efficiency and Renewable Energy Fund, initially capitalised by the European Union, Germany and Norway. With the involvement of various other EU and African players throughout the project development, this is a truly African-European success story.
Disclaimer: Support to the company is ongoing as of 06-2021. Projected results are subject to change.