The Republic of Benin has secured approximately 200 billion FCFA in funding for an independent solar power project in four cities: Natitingou, Djougou, Parakou, and Bohicon. The financing agreement was signed on October 29, 2026, between AXIAN, the Caisse des Dépôts et Consignations du Bénin (CDC Bénin), the International Finance Corporation (IFC), and Proparco. This project aims to provide clean electricity to around 383,000 people and reduce Benin's reliance on imported electricity.
The project involves constructing and operating four solar photovoltaic power plants with a combined capacity of 62 MWp in the four cities. The plants are expected to produce around 110 GWh of renewable electricity per year, which is equivalent to a 17% increase in national production from 2028 to 2035. The project also aims to avoid approximately 62,000 tons of CO2 emissions per year. The IFC and Proparco are jointly financing the project, which aligns with Benin's national energy pact.
The national energy pact aims to provide electricity access to around 928,000 additional households by 2030, increase the national electrification rate to at least 70%, and boost the share of renewable energy to 30% of the electricity production mix. Benjamin Memmi, CEO of AXIAN's energy division, stated that the project demonstrates the ambition of Benin's authorities to accelerate the country's energy transition through partnerships with the private sector.
Nathalie Kouassi Akon, regional director of the World Bank Group, emphasized the essential role of the private sector in financing projects like IPP50. She noted that the project illustrates the private sector's capacity to mobilize long-term capital to increase the supply of clean electricity, enhance energy security, and pave the way for new private investments in renewable energy.
Maryse Lokossou, general director of CDC Bénin, highlighted the link between the IPP50 project and her institution's mission to mobilize long-term capital for strategic infrastructure development. She confirmed that CDC Bénin's participation in the project demonstrates its commitment to investing alongside private operators and international financial partners to contribute to Benin's energy sovereignty.
The electricity produced from the solar power plants will be sold to the Société béninoise de production d’électricité (SBPE) under long-term electricity purchase contracts. The concession period for the project is 20 years, with commercial operation expected to start in the first quarter of 2028. The project is expected to have a lasting impact on Benin's energy landscape.
The IPP50 project showcases a model of investment involving institutional and private capital. According to Maryse Lokossou, this model demonstrates the relevance of combining institutional and private capital to finance essential infrastructure for the country's development. The project's success could pave the way for similar initiatives in the future.
Key points
- The project aims to provide clean electricity to around 383,000 people and reduce Benin's reliance on imported electricity.
