BII, FMO, and Proparco Co-invest Over $52 Million in Sierra Leone’s Planet Solar Project

Development Finance Institutions, British International Investment (BII), FMO, and Proparco, along with renewable fund manager Frontier Energy, have announced a co-investment exceeding $52 million in the Planet Solar project, a greenfield 50MW solar power initiative in Sierra Leone. Developed by Frontier Energy and Planet One, the project aims to address the urgent need for clean, affordable, and stable power in the country.

Sierra Leone possesses abundant renewable energy potential, including hydropower, wind, and solar resources. However, a significant portion of the country’s electricity, up to 80%, is generated from fossil fuels. Planet Solar seeks to diversify energy sources and become the first large-scale grid-connected solar Independent Power Producer (IPP) in the region. The 50MW solar capacity is expected to avoid 53,000 tonnes of annual CO2 emissions.

With only 23% of the population having access to electricity, Planet Solar is anticipated to increase operational domestic electricity supply by around 30%, benefiting commercial and industrial entities, public institutions, and households connected to the main energy grid. This expansion will contribute to Sierra Leone’s economic growth and development, particularly in Freetown, the commercial capital, the Western Area, and other locations throughout the country.

Chris Chijiutomi, Managing Director and Head of Africa at BII, expressed delight in bringing clean and reliable energy to underserved regions, emphasizing the commitment to climate finance. The investment aligns with the goal of achieving net-zero emissions by 2050 and aims to unlock more long-term capital for Sierra Leone’s energy sector.

Jaap Reinking, head of the Private Equity department at FMO, highlighted the significance of energy access as a key enabler for inclusive and sustainable economic recovery. Proparco’s Tibor Asboth echoed the sentiment, emphasizing the alignment of the investment with climate change mitigation strategies in Africa.

Lars Tejlgaard Jensen, Investment Director and Partner at Frontier Energy, praised the project’s development and delivery capabilities, emphasizing its potential to provide stable, clean, and reasonably priced power to urban and rural consumers, as well as commercial and industrial entities.

Sierra Leone, a priority country in the Africa Resilience Investment Accelerator initiative, aims to unlock investment opportunities and mobilize commercial capital in frontier markets in Africa. The co-investment aligns with the United Nations’ Sustainable Development Goals, including Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13).