€72M Financing Secures Senegal’s NEA Kolda as Strategic Renewable Asset
Madagascar-based group Axian Energy has reached financial close on a €72 million package for its NEA Kolda 60 MW solar photovoltaic and 72 MWh battery storage system in Senegal, marking a major step in the country’s renewable energy expansion.
The financing brings together the Emerging Africa & Asia Infrastructure Fund (EAAIF), Dutch development bank FMO, Germany’s DEG and Axian Energy’s own equity. Construction began in May 2025 using Axian’s funds to meet financing and commissioning targets, with full operations expected by November 2026 under a 25‑year power purchase agreement with Senelec.
The timing is pivotal for Senegal, as global oil price volatility has renewed the push for renewables. Dakar has committed to achieving 40% renewable electricity by 2030 and universal access by 2029. The NEA Kolda plant aligns with these goals, reducing reliance on oil-based generation and strengthening grid stability through stored energy during peak demand.
Senegal Expands Bankable Solar Pipeline
Beyond NEA Kolda, Senegal is cultivating a robust pipeline of bankable renewable projects. The country ranks as West Africa’s third-largest solar market, with 671 MW installed as of January 2026, including 307.5 MW utility-scale, 294 MW residential and growing commercial and industrial deployments.
In February 2026, Senelec launched an international tender for 500 MW of solar PV paired with 100 MW/400 MWh of battery storage under an EPCF model. Projects in Linguère and Kolda aim for full commercial operation by early 2028. Meanwhile, development finance partners EAAIF, FMO and PIDG are supporting distributed solar through companies like Afreenergy, which secured €4.3 million to expand commercial and industrial solar by 30 MW with 10 MWh storage, targeting energy-intensive sectors such as agro-industry and logistics. These projects are expected to support Senegal’s electricity demand growth of 8% annually through 2030, while advancing energy access and sustainability goals.
Gas as a Transitional Fuel
While solar is central to Dakar’s strategy, thermal generation remains part of the energy mix. Domestic natural gas is being used as a transition fuel to bridge oil dependence and a renewable-dominated future, with gas’s share of electricity generation projected to rise from under 1% in 2025 to 30% by 2030. Production began in 2025 from bp and Kosmos Energy’s Greater Tortue Ahmeyim project, alongside new gas-fired capacity such as the 366 MW Cap des Biches plant, commissioned the same year.
Complementing renewables, Aksa Energy’s 255 MW combined-cycle gas plant near Saint Louis is set for commercial operations in Q3 2026 under a 25‑year PPA, while Senegal’s sovereign wealth fund FONSIS seeks partners to develop a 500 MW gas-fired plant under an IPP model.
Senegal’s hybrid approach – predictable, low-cost revenue from renewable projects combined with domestic gas – strengthens energy security, reduces imports, and creates funds for reinvestment in industrial development. Together, these efforts support economic growth while accelerating the transition to a low-carbon, resilient power system.