20 Mega Watt solar farm in Malawi

Utility-Scale Solar Farms

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Utility-Scale Solar Farms

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Alternative Energy
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
410 to 900 MW of additional solar PV production capacity by 2030
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Industry, Innovation and Infrastructure (SDG 9) Sustainable Cities and Communities (SDG 11)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Life on Land (SDG 15) Reduced Inequalities (SDG 10)

Business Model Description

Invest in the construction of solar farms, either to operate them as an Independent Power Producer (IPP) or through a Joint Venture and sell it to an IPP or public authorities. The solar farm can be operated on a public-private partnership (PPP) basis, with the energy produced sold at a predetermined tariff for a long period, typically 25 years, following a Power Purchase Agreement (PPA). Alternatively, the energy can be sold to agro-industrial clusters located in the vicinity, as well as to neighbouring populations based on the Electricity Code (article 49).

Expected Impact

Cut fossil fuel reliance and CO2 emissions, while meeting Côte d'Ivoire's rising energy demand, and benefiting local populations, especially in rural areas.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: Denguélé
  • Côte d'Ivoire: Zanzan
  • Côte d'Ivoire: Savanes
  • Côte d'Ivoire: Vallée du Bandama
  • Côte d'Ivoire: Montagnes
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Renewable Resources and Alternative Energy

Development need
Although renewables constitute a more inclusive energy source amid rising national demand and a prevalent energy poverty, production depends mainly on fossil fuels (69% of total). Increases in energy production enabled to triple the share of the population with access to electricity (95%) but the share of renewable energy in the mix, notably hydroelectric, has decreased between 2010 and 2023 (1, 2, 17).

Policy priority
Under the National Renewable Energy Action Plan 2014–2030 the government targets 42% of renewables in the mix by 2030, revised to 45%. It also aims to expand production capacity to 4,000 MW by 2025 and 5,000 MW by 2030. In its NDCs, Côte d'Ivoire pledged to increase electricity production from renewables. Expanding access to energy and renewables is also a central theme of the National Development Plan (Pillar 3) and is a crucial element of Côte d'Ivoire's goal of becoming an upper-middle income country, as set out in its Vision 2030 (3, 4, 5, 17, 18).

Gender inequalities and marginalization issues
While access to electricity has improved, it remains limited in northern areas. Some households in grid-connected settlements do not have access to electricity, and affordability remains a pressing concern. Energy poverty concerns 91% of the rural population (6).

Investment opportunities introduction
Africa's 3rd largest electricity network, Côte d'Ivoire can attract USD 9 billion investments in renewable energy by 2030. Biomass potential equals 16.7 million tons/year from cacao, palm oil, coffee, etc. while solar potential exceeds 1,900 kWh/m². This favors investments at utility scale but also for mini-grid and hybrid applications (7, 9).

Key bottlenecks introduction
Renewable projects are exposed to climatic events such as storms, high winds, floods and landslides which could damage production plants and electricity poles. They also require prior authorization from the Ministry of Energy to ensure alignment with national energy efficiency and sustainability goals, which may involve a lengthy process (9, 19).

Sub Sector

Alternative Energy

Development need
90% of the forests have vanished in 60 years, reducing agricultural productivity. Despite grid connection, high costs hamper electricity access, forcing reliance on fuels. Moreover, the country struggles with droughts, uneven water access (67% rural), and poor food market hygiene, exacerbating health risks. Biowaste recycling and green energies could mitigate these issues (4, 11, 12).

Policy priority
The programs "Electricité pour Tous" and "Accès à l'eau potable en milieu rural" aim for universal access to electricity and drinking water by 2025 and 2030, notably through solar-powered water pumps. These include financial inclusion and the installation of 1,200 water infrastructures. The nation plans to increase solar energy production, targeting an 7-9% share in its energy mix, supported by IFC's Scaling Solar program (8, 9, 14).

Gender inequalities and marginalization issues
In Côte d'Ivoire's northern regions, 87% of households use wood for energy due to high electricity costs, intensifying deforestation despite government subsidies for methane gas, which still pollutes significantly. Additionally, water access is closely linked to income, with informal city settlements and remote villages facing severe shortages, worsening their economic and health challenges (10, 12).

Investment opportunities introduction
Côte d'Ivoire supports investment in infrastructure to achieve universal water access by 2030 with a USD 5 billion pledge. The government also supports renewable energy projects such as the Aboisso biomass plant. Additionally, with financial backing from IFC and AfDB, developments such as the USD 400 million Azito power station have been launched (9, 14).

Key bottlenecks introduction
Poor road network maintenance may hamper biomass production, as traffic interruptions can halt operations. Additionally, dust accumulation and storms reduce solar plant productivity. Moreover, local residents may struggle to maintain and replace outdated water pumps, compounded by limited access to finance, especially in villages lacking government support (8, 13, 16).

Industry

Solar Technology and Project Developers

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Utility-Scale Solar Farms

Business Model

Invest in the construction of solar farms, either to operate them as an Independent Power Producer (IPP) or through a Joint Venture and sell it to an IPP or public authorities. The solar farm can be operated on a public-private partnership (PPP) basis, with the energy produced sold at a predetermined tariff for a long period, typically 25 years, following a Power Purchase Agreement (PPA). Alternatively, the energy can be sold to agro-industrial clusters located in the vicinity, as well as to neighbouring populations based on the Electricity Code (article 49).

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

410 to 900 MW of additional solar PV production capacity by 2030

Utility-scale solar energy production was introduced in Côte d'Ivoire in 2023, with the first plant expected to generate 80MW, the country exerts potential of up to 900MW additional solar capacity by 2030 (62).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

Benchmark studies In the northern regions of Côte d'Ivoire provide an estimated 11-15% annual return for a 50 MW solar project with an investment cost of about USD 60 million (21).

Benchmark studies in the Economic Community of West African States (ECOWAS) region include a company operating a 25 MW solar plant with a 20-year power purchase agreement in Sierra Leone, which has an indicative IRR of 14.07% for the USD 45 million-project (22).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Based on benchmark studies from the northern regions of Côte d'Ivoire, a 50 MW solar project has a projected payback period of about six to nine years (21).

Benchmark studies in the Economic Community of West African States (ECOWAS) region include a company from Sierra Leone which, expects a payback period of 5.5 years for a 25 MW solar power plant (22).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

> USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

Solar farms require significant upfront investments, such as USD 60.4 million for a solar power plant project proposed by the government in its Invest in Khorogo project catalogue, and USD 60 million for the Bondoukou plant (21, 46).

Market - Highly Regulated

While off-grid solar plants can be established relatively easily under the Investment Code and the Electricity Code, large projects require construction permits and administrative authorizations, or may have to be done through public-private partnerships (PPP). Decree No. 96-894 mandates the conduct of an Environmental Impact Assessment (36).

Market - Highly Regulated

Negotiations for tenders can be protracted due to the lack of standardized procedures (21).

Market - High Level of Competition

Oil and fuel subsidies and the recent oil discoveries could reduce the attractiveness of solar energy by driving up its relative price.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Côte d'Ivoire's robust economic growth has driven a 6% average annual increase in electricity demand, making the construction of new power plants essential to meet this rising need (21).

69% of the energy production is from fossil fuels in the country. This heavy reliance on oil and gas underpins the majority of CO2 emissions from the energy sector, which are a significant portion of the country's greenhouse gas emissions profile (17, 58).

Recurring power outages have strained various economic sectors. According to information shared by the Confédération générale des entreprises de Côte d'Ivoire (CGECI) in 2024, the mining sector alone has lost USD 8 million due to these outages, which have also impacted the cocoa industry and contributed to an energy deficit of 800 MW (53).

Various agro-processing industries, including sugar and cashew, exhibit high and growing energy needs. They are particularly vulnerable to power outages and use predominantly thermal energies, which have a negative effect on the environment and on public health due to small particle emissions (54).

Gender & Marginalisation

Northern regions are less connected to the national grid. While over 70% of Ivorians live in villages connected to the electricity grid, just 29% of households use it due to last-mile connection costs and energy prices (3).

Even when villages are connected to the national electricity grid, the cost of connecting households to the network can cost up to 200 000 FCFA (USD 330)(three times minimum wage), in addition to conformity checks. This constrains some poor households to keep using traditional energy sources, which are also inexpensive (4).

Air pollution, partly originating from the industry and the energy-production sectors, contributes to the propagation of lung cancer in Abidjan, which concerns 10% of inpatients against 2% in the 1990s (55).

Expected Development Outcome

Investing in utility-scale solar plants will enable Côte d'Ivoire to meet the rising electricity demand, enhancing energy security.

Investments in solar energy contribute to reduce CO2 emission (for instance 27,000 tons are estimated to be displaced annually by a 37.5 MW solar project) (26).

The construction of additional solar power plants ensures a more stable energy supply, limiting losses in energy-intensive sectors.

The development of solar power plants is helping to improve energy supplies to the agro-industrial sector, while reducing CO2 emissions.

Gender & Marginalisation

Solar stations such as the one in Boundiali contribute to lower the price of energy for the local populations, thereby tackling regional inequality.

Increasing electricity production, particularly via solar power, would lower costs for populations, thereby reducing energy poverty.

The production of renewable energy reduces CO2 emissions, air pollution and related illnesses.

Primary SDGs addressed

Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

7.1.2 Proportion of population with primary reliance on clean fuels and technology

7.2.1 Renewable energy share in the total final energy consumption

7.3.1 Energy intensity measured in terms of primary energy and GDP

Current Value

29% of households had access to non-polluting combustibles to cook in 2018 (27).

31.27% of the energy produced comes from renewables (17).

Côte d'Ivoire's primary energy production per capita was 17.3 GJ or 63% of the African average and 22% of the world average (29).

Target Value

Multiply by five-fold the number of households using biogas or solar energy and liquefied natural gas for cooking purposes by 2030, from 6.3 million in 2016 to 33,1 million in 2030 (3).

The government's plan for renewable energy (PANER) targets universal access to electricity and 42% of renewable energy in the mix by 2030, revised to 45% (3, 17).

The long term objective for this indicator is to double the global rate of improvement in energy efficiency by 2030 (52).

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

9.4.1 CO2 emission per unit of value added

Current Value

The CO2 emissions for the economy were 0.27 kg per USD of GDP in 2017 (28).

Target Value

The government target for 2020 was 0.117 kg of CO2 per USD of value added (28).

Sustainable Cities and Communities (SDG 11)
11 - Sustainable Cities and Communities

11.6.2 Annual mean levels of fine particulate matter (e.g. PM2.5 and PM10) in cities (population weighted)

Current Value

The annual mean concentrations of fine particulate matter (PM 2.5) in urban areas was 54.4 µg/m3 in 2019 (50).

Target Value

The WHO recommended a maximum level of 5 μg/m3 (51).

Secondary SDGs addressed

Climate Action (SDG 13)
13 - Climate Action
Life on Land (SDG 15)
15 - Life on Land
Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

Directly impacted stakeholders

People

Households benefit from improved access to energy as each project can service dozens of thousands of household.

Gender inequality and/or marginalization

Rural populations, especially from the Bas-Sassandra, Montagnes, Ssandra-Marahoué and Zanzan districts which account for more than 50% of the unelectrified population, would benefit from off-grid solutions (21).

Planet

Solar farms will enable the fulfilment of a portion of the energy needs of industry, agriculture, and the population, with a substantially reduced environmental impact, particularly when compared to coal and gas sources.

Corporates

The construction and operation of solar farms creates business opportunities along the value chain, benefiting construction and solar equipment supply companies.

Public sector

Public services, including schools and health centers, may benefit from better access to energy, while the government wood derive additional tax revenues from this activity.

Indirectly impacted stakeholders

People

The population benefits from the creation of skilled and unskilled jobs in the energy and construction sectors.

Gender inequality and/or marginalization

Women and coastal populations would benefit from lower rates of atmospheric pollution, being particularly exposed to respiratory diseases.

Planet

Solar farms would generate clean energy without emitting CO2, reduce reliance on fossil fuels, decrease air pollution, conserve water, and minimize greenhouse gas emissions.

Corporates

Firms, particularly in energy-intensive sectors such as agro-industry, would enjoy lower energy prices.

Public sector

The government benefits from an increase of the share of solar in the energy mix, in line with its objective of raising the share of solar energy to 7% by 2030 (42).

Outcome Risks

If Côte d'Ivoire does not have the adequate infrastructure to manage obsolete solar panels, it may lead to soil pollution and unlawful dumping of toxic waste. Even the recycling of solar panels emits CO2, making solar energy not entirely CO2-neutral (30).

Solar farms require large superficies, which could lead to habitat loss and have a detrimental impact on the wildlife, especially in desert or rural areas.

Solar farms established in arid or very hot areas may overuse water for cooling purposes, which could exacerbate water stress (44).

Gender inequality and/or marginalization risk: If solar farms are built on agricultural land, this may exacerbate food insecurity in vulnerable areas.

Impact Risks

If the infrastructures are not maintained frequently and adequately, production can be short-lived.

If information on sunshine variability between regions and across time is not gathered and exploited, the facilities' long-term performance may be significantly altered (24).

The unavailability or difficulty obtaining spare parts can lower the lifespan of solar equipment, leading to higher costs (43).

Gender inequality and/or marginalization risk: If the capital costs are too high and energy pricing is insufficiently regulated, solar power can be more costly and may raise electricity tariffs, potentially limiting access to energy for poorer communities.

Impact Classification

C—Contribute to Solutions

What

Increased solar power generation improves energy access for households, agriculture and industrial firms, allowing to satisfy growing demand and meet national objectives for renewable energy.

Who

Households and companies operating in energy-intensive sectors, especially in northern regions, would benefit from increased supply.

Risk

Inadequate maintenance, lack of sunshine data, and spare parts shortages can shorten the lifespan of solar equipment and increase costs.

Contribution

Solar energy production replaces less sustainable methods, especially gas and fuel, which could increase in the wake of the new oil discoveries (41).

How Much

The Ministry of Mines, Petroleum, and Energy of Côte d'Ivoire aims to build at least 12 solar power plants with a total capacity of 678 MW by 2030, and 1,686 MW by 2040, and targets 9% of solar energy in the mix by 2030 (60, 61).

Impact Thesis

Cut fossil fuel reliance and CO2 emissions, while meeting Côte d'Ivoire's rising energy demand, and benefiting local populations, especially in rural areas.

Enabling Environment

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Policy Environment

The National Renewable Energy Action Plan 2014–2030 (Plan d’action national des énergies renouvelables 2014-2030 or PANER) outlines key objectives for access to clean energy, notably through improved energy efficiency and use of biogas and solar energy (3).

The Scaling Solar program, led by the World Bank Group, assists Côte d'Ivoire in expanding its clean energy supply to reach a target of at least 42% renewable energy by 2030. This initiative, involving two solar power projects with a capacity of 60 MW, aims to improve access to finance for solar projects and deliver affordable, grid-connected solar energy (56).

Côte d'Ivoire's Nationally Determined Contributions stress the development of renewable energies as a key strategy to reduce greenhouse gas emissions. A major objective of the country's revised climate strategies is the reduction of short-lived climate pollutants (SLCPs), such as methane, black carbon, and fine particles (4).

Financial Environment

Fiscal incentives: The new Investment Code sets a discounted VAT rate of 9% on solar equipment (40).

Fiscal incentives: The Investment Code provides fiscal incentives for investments in renewable energies, including exemption from various commercial and profit taxes. It also offers an exemption from patents and licenses contribution and an 80% to 90% reduction of employers' contribution (40).

Other incentive: The World Bank offers support to solar projects through the Scaling Solar programme. It provides a framework for financing and technical assistance to help companies and investors develop solar projects, including large-scale installations (9).

Regulatory Environment

Law No. 2014-132 (Electricity Code of 2014) supersedes the Electricity Law of 1985. This code facilitates private involvement in electricity generation, transmission, distribution, and retailing, thereby dismantling the state monopoly. The code allows independent power producers (IPP) to sell electricity freely to eligible clients without price regulation (39).

Decree No. 2018-258 outlines rules for PPP contracts. It also applies to solar projects, which are procured under a PPP framework. It provides details on procurement procedures, payment terms, remuneration conditions, and contract content (24).

Decree No. 2016-782 outlines the modalities surrounding electricity production, transport, dispatching, distribution and commercialization concessions, including the creation of a dedicated steering committee to supervise the negotiations (20).

Decree No. 2016-783 outlines the regulations applicable to the sale of energy from an independent power producer to the state or eligibility clients (51).

Decree No. 2016-786 outlines the rules applicable to electricity pricing. The sale prices of electricity are set and revised by an interministerial order to ensure the financial balance of the electricity sector, covering the revenues of concessionaires and public service missions (25).

Decree No. 96-894 requires the conduct of an Environmental Impact Assessment for several industries, including energy production (36).

Marketplace Participants

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Private Sector

RMT, Companie Ivoirienne d'Electricité, Masdar, AMEA Power, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI).

Government

Autorité Nationale de Régulation du Secteur de l’Électricité (ANARE-CI), Ministère du Pétrole, de l’Energie et des Énergies Renouvelables (MPEER), Ministère de la Salubrité, de l’Environnement et du Développement Durable, Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).

Multilaterals

World Bank, International Finance Corporation (IFC), African Development Bank (AfDB), European Union (EU).

Non-Profit

Association Ivoirienne des Energies Renouvelables, Kreditanstalt für Wiederaufbau (KfW), French Development Agency (AFD).

Public-Private Partnership

The Bondoukou solar plant was approved in May 2023 on a Public-Private Partnership basis between AMEA Power and the government, allowing the company to develop, finance, build, and operate the plant, with its electricity sold to the Ivorian Electricity Company (CIE) under a 25-year power purchase agreement (48).

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Côte d'Ivoire: Denguélé

Denguélé is the district with the highest irradiation rate, and therefore the greatest potential for solar energy, receiving between approximately 1,590 and 1,670 kWh per year (31).
rural

Côte d'Ivoire: Zanzan

Zanzan District, especially the Boukani region, is a major hub for agriculture and livestock, producing key crops such as shea nuts (59).
rural

Côte d'Ivoire: Savanes

Savanes is the district with the highest energy poverty (83.98% in the Oukani region). It is also among the districts with the most annual sunshine, and therefore the greatest potential for solar energy, receiving between approximately 1,510 and 1,660 kWh per year (6, 31).
rural

Côte d'Ivoire: Vallée du Bandama

Vallée du Bandama exhibits high levels of energy poverty, reaching 69.03% in the Hambol region (6).
rural

Côte d'Ivoire: Montagnes

Energy poverty is particularly high in the Montagnes district, reaching 64.41% in the Cavally region and 63.7% in the Tonpki region (6).

References

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