Challenge
Although increased access to electricity has fueled strong economic growth in Côte d’Ivoire over the past decade, power is still limited, reaching only about half of the country’s rural population. In addition to needing additional electricity to support further growth, Côte d’Ivoire is seeking to increase the share of energy generated from renewable sources to 42 percent by 2030, according to the Côte d’Ivoire National Renewable Energy Action Plan for 2014-2030.
Solution and Impact
Political risk insurance is supporting a project to build, finance, operate, and maintain for 25 years a 46 MW biomass power plant along with a substation and a 350-meter transmission line connecting to the electricity grid. The plant, which will generate power from palm tree leaves and trunks, will be the country’s first large scale biomass plant feeding into the grid and the largest power plant fueled by agricultural waste in West Africa. DFC is providing reinsurance to Chubb European Group SE, which will be insuring Meridiam Africa Infrastructure Fund’s investment in the project.
In addition to generating 336 GWh of clean electricity per year, enough energy to supply 1.7 million people all year long, the project will enable Côte d’Ivoire to reduce its carbon dioxide emissions by more than 4.5 million tons. The project is also expected to generate positive impacts on the country’s agriculture sector by generating additional revenue for almost 12,000 farmers.