Akuo Energy, the leading French IPP in renewable energy,recently announces that it has signed, with the Malian government, a concession agreement and a power purchase agreement for the construction and operation of the Kita project. Kita is a 50 MW solar PV plant located around a hundred kilometres northwest of Bamako. The signing of these major contracts enables this project’s development to be rubber stamped and its financing to be launched.
50 MW Installed Capacity
Kita is a photovoltaic project with a capacity of 50 MW, making it not only the largest solar energy production project in West Africa to date, but also a major response to a public interest issue: with just 38% of homes connected, Mali will have to substantially increase its electrical capacity to support its economic growth. And this is something of which the country is well aware: in February 2013, the Ministry of Energy and Water signed a memorandum of understanding with the R20 to accompany the development of its electricity production capacity for a total output of around 160 MW, including 50 MW in Kita. In June 2013, the R20 decided to entrust the development and running of this project portfolio to Akuo Energy.
A Concession Agreement Combined with a Power Purchase Agreement
The concession agreement signed with the Malian government is structured following the BOOT (Build Own Operate and Transfer) model. As the project’s sponsor and operator, Akuo Energy, through its local subsidiary Akuo Kita Solar, will thus finalise its development and will be able to operate the project company’s plant for a period of 30 years, following which it will become the property of the Malian State. Simultaneously to this concession agreement, Akuo Kita Solar has also signed a 28-year electricity purchase agreement with national power company Energie du Mali-SA. Electricity should begin to be fed into the grid following a 24-month process.