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Noteworthy initiatives and impactful projects. Meet the people behind these projects at the Future of Energy.
Blown away
Argentina is home to the Western Hemisphere’s best wind resources, with the Atlantic coastline and southern Patagonia experiencing year-round, steady wind. However, the country is behind its smaller neighbours when turning these resources into a reliable power source.
FMO's long-term client Genneia is one of Argentina’s leaders in renewable energy, holding roughly a quarter of the country’s installed renewable energy capacity and having a gross installed capacity of approximately 1,230 MW (866 MW coming from wind and solar plants). As true pioneers in the country, the company has also built the largest wind farms in Argentina. Learn more about their impact here.
Meet Genneia at the Future of Energy!
Breaking ground
Innovative financing has spurred impact in Djibouti, a nation that has been entirely reliant on power generated from imported fossil fuels and hydrogen-generated power imported from neighboring Ethiopia. Recently less than half of the 123MW of domestic installed capacity was operational due to outdated diesel plants. In a crucial step for the East African nation, the clean energy will spur industrialization, job creation, and economic stability as Djibouti seeks to take advantage of its strategic location as a global transshipment hub.
The consortium for the wind farm was formed in 2018 and subsequently provided all-equity construction bridge financing via AFC, FMO, CFM’s Climate Investor One fund, and GHIH, propelling the project to achieve financial close in a record 22 months. Construction kicked off in January 2020 and continued at pace despite the global supply challenges caused by Covid-era lockdowns.
Today, the wind farm spans 387 hectares, equivalent to over 700 football pitches. The site’s 17 Siemens turbines each produce 3.4 MW, served by a robust 220-megavolt-amperes (MVA) substation and connected by a 5km overhead transmission line to the local grid operator and warehousing.
The project stands out as a demonstration of the use of innovative equity financing to accelerate development impact through de-risking, while showcasing the commercial viability of transformative projects in Africa.
At the Future of Energy, Climate Fund Managers (CFM) will shift its gears to another innovative opportunity: Green Hydrogen. Don't miss the session on 'Green Hydrogen: A Bubble or a Game Changer in Decarbonization?
Packing some power
While Senegal has relatively high electrification rates of 88% in urban areas, rural regions reach only 38%, highlighting the need for enhanced grid connectivity. Africa REN, an independent power producer in West Africa, developed the Walo Storage project in Senegal, the first battery storage project in the region.
Upon completion, Walo will improve energy security in the country, demonstrating the importance of robust energy storage systems to support the electric transmission network and accelerate an efficient transition to renewable energy.
This first project of its kind will have many positive impacts, among them greater energy management flexibility and improved grid operations reliability. The system will use reserve energy in case of deficits, bring power and grid assets online after failures and supply electricity to the cities during power outages.
Our partner Africa REN, will be speaking at the Future of Energy! Check out the program.
Rooftop solar transition
In Kenya, industrial and commercial enterprises face high grid tariffs ranging from USD 13 to 20 cents per kilowatt-hour of electricity. Starsight Premier Energy Finance, a renewable energy company has a unique lease-to-own plan: it lets businesses in East Africa lease a solar power system for 12-15 years, and then it becomes theirs. In essence, the monthly payment covers the system, maintenance, insurance, and parts, which means businesses can generate their own electricity for about USD 6-8 cents per kilowatt-hour.
For manufacturers, Starsight Premier Energy Finance offers another option called asset finance. This helps businesses take advantage of certain benefits, reducing the cost of their self-generated power to as low as USD 4 cents per kilowatt-hour. Thanks to these plans, companies usually save 35-60% on electricity costs compared to their local provider.
Want to know more about Starsight's approach? They will be present at the Future of Energy.
