American Capital is investing $86 million in a 151.8-MW wind power project at Taiba Ndiaye in Senegal.
The company’s subsidiary American Capital Energy & Infrastructure (ACEI) will collaborate with French project developer Sarreole Sarl to fund development costs and project equity, according to a statement.
Sarreole, which was primarily operating in France, has most recently been associated with the Taiba project as the lead developer. The company has experience of getting more than 20 renewable energy projects, which represent more than 240 megawatts, permitted.
And ACEI is a unit of American Capital Asset Management, which manages capital assets of American Capital. It has already closed financing for a 36-MW wind project in Jamaica.
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The Taiba project, which is the first industrial-scale wind power project in Senegal, is estimated to require about $343 million in total capital cost, the bulk of which is expected to be financed by senior and mezzanine lenders. Also, Chapin International is acting as the project development and financial advisor for the project.
The project developers plan to complete installation of the turbines in phases of 50.8 megawatt each over three years. The power generated by the wind farm is to be evacuated by Senegal’s national utility Senelec under a 20-year power purchase agreement.
Once completed, the Taiba project would be the biggest in West Africa. The wind farm would be a key addition in the efforts government of Senegal has been taking toward diversifying the country’s energy mix as it works to reduce its reliance on oil-fired power generation.
Ajith Kumar S