August 2020 On August 21th 2020, the Green Climate Fund (GCF) Board has approved funding for a rural electrification project which aims at deploying solar mini-grids in 1,000 isolated villages across Senegal. Securing the GCF’s approval is a vital achievement for the Climate Finance Innovators (CFI) project, which provided technical support throughout all stages of the approval from concept note to the full funding proposal.
The project by the Senegalese Rural Electrification Agency (ASER) will support the Senegalese government’s aim of achieving universal access to electricity by 2025, focusing on the most vulnerable and disadvantaged people in rural areas. The annual emission reductions impact of the activity is expected to amount to 45,098 tCO2 with more than 1.1 MtCO2 to be avoided over the project’s lifetime, thereby supporting Senegal’s Nationally Determined Contribution (NDC).
The funds will be managed by the West African Development Bank (BOAD), which serves as Accredited Entity towards the GCF. By channelling concessional funding, connecting beneficiaries to reliable electricity supply, and facilitating access to social and productive users of this new source of power, the project accelerates and sustains the electrification of communities and businesses that remain outside the boundary of the Rural Electrification Priority Plan and Senelec (National Electricity Company of Senegal).
In line with the Climate Finance Innovators approach, the ASER Solar Rural Electrification Project uses CDM elements and adapts them to them for use in the climate finance context: it applies Monitoring, Reporting and Verification (MRV) protocols based on a baseline and monitoring methodology approved under the CDM. With this approach, the project will showcase how mitigation activities can support NDC targets as well as strengthen readiness preparations for the next generation of carbon markets under Article 6 of the Paris Agreement.