A landlocked country and one of the largest in Africa, Mali depends on costly thermal generation, variable hydropower and electricity imports. However, the country has set ambitious targets to harness its large renewable energy potential. Scatec is proud to be working with the Government of Mali to develop the Segou solar plant, one of the first large scale renewable energy projects in the country.
In 2015, Scatec and development partners International Finance Corporation (IFC) and Power Africa 1, signed a 25-year PPA with Energie du Mali (EDM) for the Segou project. IFC and the African Development Bank (AfDB) will provide the non-recourse project financing for the project. The project has also been awarded a USD 25 million concessional loan from the Climate Investment Funds under the Scaling Up Renewable Energy Program. In addition, the project receives economic support from Norad related to development costs and grid infrastructure investments that will be transferred to and operated by EDM after project completion. During 2019, the project signed an amendment to the Concession Agreement with the Ministry of Finance and the Ministry of Energy and the amendment to the PPA with EDM. The main remaining step is to finalise agreements with lenders. Scatec will build, own and operate the solar plant with a 51% shareholding. IFC Infraventures and Africa Power will hold the remaining part of the equity.