ENERGY SECTOR OVERVIEW

Burkina Faso currently has some of the most expensive electricity in the region, with cost of production at $0.22-0.25 USD/kWh. The country has had limited experience with private sector development in the energy sector, but the Government of Burkina Faso has set forth a bold national plan and has taken steps to introduce legislation to encourage private-sector investment and to liberalize electricity generation and distribution.

By 2020, Burkina Faso seeks to increase its electricity access rate from 20% to 80% as part of its National Plan for Economic and Social Development, doubling the number of customers to 1 million, and increasing installed capacity to 1,000 megawatts (MW). By 2025, Burkina Faso seeks to lower its cost of energy, increase the access rate to 95%, increase installed capacity to 2,000 MW, and begin exporting oil and gas to nearby countries. A new law adopted in April 2017 removes market segmentation and the single-buyer model, liberalizes production and distribution, and adopt provisions relating to renewable energy and energy efficiency. In 2017, Burkina Faso inaugurated the Zagtouli solar power plant with support from the European Union and the French Development Agency (AFD).

GENERATION CAPACITY

Installed Capacity: 300 MW

• Diesel and HFO: 253 MW

• Hydro: 32 MW

• Solar: 33 MW

Power Africa New MW to Date

• Reached Financial Close: 33 MW

CONNECTIONS

Current Access Rate: 20.3%

• Rural: 1.5%  Urban: 58.1%

Households without Power: 3 million

• Target: Increase national access rate to 80% by 2020

Power Africa New Off-Grid Connections: 214,995

INVESTMENT AND ENABLING ENVIRONMENT

Biggest Issues and Bottlenecks

1. No legal or regulatory framework for independent power producers and limited experience with IPPs.
2. National utility SONABEL is not a creditworthy off-taker.
3. High cost for new on-grid connections and nascent off-grid sector.

Power Africa Interventions

1. MCC is currently developing its second Compact in Burkina Faso. MCC's constraints analysis revealed that some of the main barriers to economic growth in the country include an insufficient supply of power and the high cost of electricity.

POWER AFRICA’S ENGAGEMENT IN BURKINA FASO

MW GENERATION

In 2017, the U.S. Trade and Development Agency (USTDA) awarded a grant to Société de Production d'Energie Solaire de Kodéni SAS for a feasibility study for two 17 MW solar photovoltaic plants near the villages of Pá and Kodéni in Burkina Faso. The solar plants are being developed by BioTherm Energy, a Power Africa partner.