Senegal’s Ambitious Plan to Slash Electricity Costs and Boost Energy Security

The government of Senegal is pursuing a comprehensive energy diversification plan aimed at reducing electricity costs and enhancing energy security. Under its Vision 2050 strategy, the nation intends to expand energy production capacity, integrate energy systems across regions, shift from oil-based fuels to domestic natural gas, and increase access to electricity in rural areas.

Currently, petroleum products account for roughly 72.5% of Senegal's power generation, with the government subsidizing higher generation costs of 34-38 US cents per kilowatt-hour to offset consumer prices of 24 cents per kilowatt-hour. Aiming to achieve universal electricity access by 2025, the government seeks to convert heavy fuel oil power plants to LNG and increase renewable energy's share to 40% by 2030, ultimately aiming for a 12 GW electricity production capacity by mid-century.

In 2025, Senegal's renewable electricity capacity stood at 624.8 MW, with solar power making up 49%, wind power 35%, and hydropower 16%. In April, AXIAN Energy finalized the financing for the 90 MW NEA Kolda photovoltaic plant, which will be supplied to over 235,000 households via a 25-year power purchase agreement with Senelec.

The Taiba N Diaye wind farm, the country's first large-scale wind energy project, has contributed to a 15% increase in Senegal's electricity capacity. Additionally, Rseau Gazier du Sngal RGS is seeking an extra 530 million in financing to expand its natural gas pipeline network, aligning with government efforts to reduce reliance on heavy fuels and supply natural gas to power plants by 2029.