Eranove Group signed a 30-year concession agreement with the government of Mali through its subsidiary Kenié Energie Renouvelable. Under the agreement the group will finance, develop, build and operate the Kenié hydro-electric dam located in Baguinéda on the Niger River. The Kenié hydro-electric facility, with an installed capacity of 42 MW, will help Mali respond to this energy challenge. Initial estimates suggest that the Kenié dam could produce around 175 GWh and enable Mali to make better use of its hydro-electric potential and thus reduce its dependence on imported hydrocarbons. “Hydro-electric power is one renewable energy source that is in abundant supply in Africa. As part of the regional integration of power transmission networks, hydro-electricity can play a key role in increasing power generation capacity. And we mustn’t forget micro and pico hydro-electricity either. These small hydro-electric facilities can supply power to villages or groups of villages in remote areas far away from interconnected transmission systems. Hydro-electricity is a renewable and competitive source of power in terms of production costs, and could even play a role in the financial balancing of power sectors and in meeting demand. This would prove hugely beneficial both for local populations and for regional industrial development,” assesses Marc Albérola, CEO of the Eranove Group. The signing of the concession agreement comes after several years of cooperation between Mali’s Ministry of Energy and Water and IFC InfraVentures. Working together, these institutions conducted preliminary feasibility studies followed by an international call for tenders, which resulted in the selection of the Eranove Group as a strategic partner. The agreement of June 18 is a significant milestone in the implementation of the project, as the financing of the project, estimated at €110 million, can now get under way. According to the current project schedule, construction is due to begin in 2016 and the dam would be put into operation in 2020. The dam will then be operated under a concession agreement by Kenié Energie Renouvelable, a new subsidiary of the Eranove Group, whose shareholders will also include IFC InfraVentures.
