The Overseas Private Investment Corp. (OPIC), a development finance institution of the U.S. government, has signed a commitment with Lekela Power for the development, construction and operation of a 158 MW wind farm in Taiba N’Diaye, Senegal.
OPIC committed $250 million in financing and $70 million in reinsurance to Parc Eolien Taiba N’Diaye.
According to OPIC and Lekela, Senegal suffers from a chronic electricity supply: Regular power rationing and blackouts adversely affect living conditions and economic development. In addition, the cost of electricity in Senegal is high because nearly 90% of the electricity is currently generated using oil-based fossil fuel.
This project, however, is a critical component of the country’s power generation and sustainable energy growth plan and supports the goals of the U.S. government’s Power Africa initiative. In fact, the wind farm is expected to increase Senegal’s available installed power capacity by 24%, say OPIC and Lekela.
“Energy is critical to the African continent and its continued growth,” said Chris Antonopoulos, CEO of Lekela. “Lekela is uniquely positioned as a long-term investor to provide clean, secure, reliable and competitive renewable energy in Senegal and across Africa.”
Lekela is a joint venture between investor Actis and renewable energy developer Mainstream Renewable Power.