Sarréole is a French based developer with more than ten years experience in the development, construction and operation of renewable energy projects internationally. In order to run the project to its term, investment funds and/or utilities are about to inject equity in the project.
In order to develop non-fossil energy resources in Senegal, the state has authorised the development, construction and operation of the first wind farm project in Senegal, with the aim of responding to increasing energy demand in the country taking into account ecological needs and reducing carbon emission.
Main characteristics of the project:
- the project is composed of 46 Vestas wind turbines each having an installed capacity of 3.3MW for a total installed capacity of 151.8MW divided up into two clusters
- the expected annual production of the wind farm is 280 million kWh
- the project will be connected to the public grid of electricity through the Tobène Substation (where the Manatali lines connect) and will inject on the 225kV Tobène-Kounoune line and on the 90kV Tobène-Thiona or Thiona-Soccocim lines
- Senegal’s first industrial-scale wind power project and the largest one in West Africa. The new Senegalese renewable law will allow the development of other projects
- the global estimated cost of the project amounts to approximately €275 million
- the plant is expected to be fully operational by 2017.
The project is being run on a long term process basis as it involves material negotiations with the state, SENELEC (the national agency benefiting from a monopoly in Senegal) and various local authorities. We have been instructed by Sarréole to advise them on legal issues arising from the development of the project, including the negotiation of the project documents, the financing documents, the turbines supply agreement and the operation and maintenance agreement.
The main areas of work carried out so far have been:
- negotiation of the off-take contract with SENELEC which should organise the purchase of the electricity on a take or pay basis
- negotiation of the bank guarantee to be provided by the developer under the off-take agreement
- analysis of real estate issues and environmental authorisations to be obtained
- analysis of the Senegalese legal framework and of the draft renewable law to support development of renewable energy and adapt SENELEC's monopoly accordingly.
Most recently we have been working with Sarréole’s financial adviser on an update document for the project to present the legal issues and development stage of the wind farm to potential investment funds. We have also been involved in the kick-off meeting with commercial banks and multilateral or export credit agencies to start putting in place the financing.