Development Finance Institutions Invest Over $52 Million in Sierra Leone’s Planet Solar Project

Development Finance Institutions (DFIs) including British International Investment (BII), FMO, and Proparco, along with renewable fund manager Frontier Energy, have collectively invested over $52 million in Planet Solar, a greenfield 50MW solar power project in Sierra Leone. The project, developed by Frontier Energy and Planet One, aims to enhance access to clean, affordable, and stable power in Sierra Leone, addressing the urgent need for renewable energy. Sierra Leone currently relies on fossil fuels for up to 80% of its electricity generation.

Key Points:

• Project Overview:
  • Planet Solar is a 50MW solar power project in Sierra Leone, making it the first large-scale grid-connected solar Independent Power Producer (IPP) in the country.
  • The solar capacity is expected to help avoid 53,000 tonnes of annual CO2 emissions.
• Investment Details:
  • DFIs, including BII, FMO, and Proparco, along with renewable fund manager Frontier Energy, have co-invested over $52 million in the Planet Solar project.
  • The investment supports the development of critical renewable energy infrastructure in Sierra Leone.
• Energy Access Impact:
  • Currently, only 23% of the population in Sierra Leone has access to electricity. Planet Solar aims to increase the operational domestic electricity supply by approximately 30%, benefitting commercial and industrial entities, public institutions, and households connected to the main energy grid.
• Sustainable Development Goals (SDGs):
  • The commitment to invest in the Planet Solar project aligns with the United Nations’ Sustainable Development Goals, including Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13).
• Africa Resilience Investment Accelerator Initiative:
  • Sierra Leone is one of the priority countries in the Africa Resilience Investment Accelerator initiative co-led by BII and FMO. The initiative aims to unlock investment opportunities and mobilize commercial capital in frontier markets in Africa.
• Support and Commitment:
  • The co-investors expressed their commitment to supporting Sierra Leone’s development of electrical infrastructure and fostering economic growth.
  • The project is seen as a beacon to attract more long-term capital to advance the country’s energy sector.
• Development Impact:
  • The Planet Solar project is expected to have a transformational impact, providing stable, clean, and reasonably priced power to urban and rural consumers, as well as commercial and industrial entities.

Conclusion: The co-investment in the Planet Solar project represents a significant step toward enhancing Sierra Leone’s renewable energy capacity and addressing energy access challenges. The support from DFIs and the private sector demonstrates a collective commitment to sustainable development, economic growth, and climate action in Sierra Leone.

proparco