- Benin gives IPPs access to its energy market.
- The consortium has agreed to construct four solar photovoltaic plants totalling 50 MWp.
- The solar project is currently under construction and has been in the works since 2019.
Benin allows independent power producers access to its energy market (IPPs). Under a public-private partnership, the government of this West African country has appointed a consortium to construct four solar power plants (PPP). GreenYellow, a subsidiary of the French group Casino, has joined forces with Egnon Consulting, a consulting firm based in Cotonou, Benin.
The concession agreement was signed on Monday, July 4, 2022, by the heads of the two companies, the Beninese Minister of Energy Dona Jean-Claude Houssou and the Minister in charge of the Economy and Finance, Romuald Wadagni. The consortium has agreed to construct four solar photovoltaic plants totalling 50 MWp. The largest, with a capacity of 15 MWp, will be built in Parakou, in the Borgou division. In addition, the Bohicon solar power plant, with a similar capacity, will be located in the Zou department.
The other two solar power plants, each with a capacity of 10 MWp, will be built in Djougou in the Donga division and Natitingou in the Atakora division in northwest Benin. GreenYellow and Egnon Consulting were chosen in a competitive bidding process in collaboration with the Millennium Challenge Account-Benin II (MCA-Benin II), a $421 million United States bilateral development fund managed by the Millennium Challenge Corporation.
The solar project is currently under construction and has been in the works since 2019. As a result, GreenYellow and its partner no longer need to be concerned about financial mobilization. For example, the International Finance Corporation (IFC), a subsidiary of the World Bank Group, and Proparco, a branch of the French Development Agency (AFD) group specializing in private sector financing, are both supporting the project.
Under a 20-year power purchase agreement, the project’s electricity will be sold to the Société béninoise d’énergie électrique (SBEE) (PPA). These new facilities will increase Benin’s installed capacity. According to Power Africa, this West African country has an installed capacity of only 342 MW despite having a population estimated by the World Bank to be over 12 million in 2020. Furthermore, less than one MW of this capacity is derived from renewable sources.