Photo by: Reuters
Electricity and water services provider Eranove Group has signed a 30-year concession agreement with the Republic of Mali to finance, develop, build and operate the €110-million Kenié hydroelectric dam, in Baguinéda, on the Niger river.
The company would develop the 42 MW project, on which construction was expected to start in 2016, through its subsidiary Kenié Energie Renouvelable.
Initial simulations suggested that the project, which would be completed in 2020, could produce around 175 GWh of electricity, which is equivalent to the average yearly consumption of 175 000 households.
According to World Bank estimates, Mali’s current installed power capacity of 414 MW covered only half of potential demand and the dam would help the country respond to meeting that demand.
“Hydroelectricity is a renewable and competitive source of power in terms of production costs and could even play a role in the financial balancing of power sectors and in meeting demand. This would prove hugely beneficial both for local populations and for regional industrial development," Eranove Group CEO Marc Albérola said in a statement.
With an estimated potential of 400 000 MW, "hydroelectric power is one renewable-energy source that is in abundant supply in Africa.
“As part of the regional integration of power transmission networks, hydroelectricity can play a key role in increasing power generation capacity. And we mustn't forget micro- and pico-hydroelectricity either. These small hydroelectric facilities can supply power to villages or groups of villages in remote areas far away from interconnected transmission systems,” he added.
Private equity investment company Emerging Capital Partners would support Eranove.