Project detail - Tamba Solar SAS

Who is our prospective customer?

Tamba Solar SAS (the Borrower) is a special purpose vehicle established to develop, construct, own and operate a 100 MWp solar photovoltaic (PV) power plant combined with a 60 MW / 180 MWh Battery Energy Storage System (BESS) in the Tambacounda region of Senegal. The Tamba Solar project (the “Project”) is sponsored by Taranis Operations Limited through Taranis Holdco Senegal SAS (90%), together with local partner Amar Energies (10%). The Project will sell electricity to Senegal’s national utility, SENELEC, under a 25-year Power Purchase Agreement (PPA) signed in December 2024 and supported by a sovereign guarantee.

What is our funding objective?

FMO is considering providing and arranging a senior debt financing package of up to EUR 146.5 mln (of which FMO’s senior loan contribution will be up to EUR 89 mln) supporting the development, construction and operation of the Tamba Solar Project. FMO has been mandated by Taranis as Mandated Lead Arranger in connection with the proposed financing which will support the PV generation facilities, the BESS and related grid interconnection infrastructure. The proposed financing is expected to mobilize additional development finance institutions, thereby increasing the availability of long-term infrastructure financing in Senegal.

Why do we want to fund this investment?

The Tamba Solar Project will contribute to increasing the supply of renewable energy in Senegal while improving the reliability and resilience of the national electricity system through the integration of utility-scale battery storage. The project is expected to support Senegal’s energy transition objectives by adding substantial renewable generation capacity, reducing dependence on fossil fuel-based power generation and strengthening grid stability. As one of the largest solar PV projects with battery storage in the country, Tamba Solar SAS is expected to contribute to improved energy security, lower greenhouse gas emissions and the expansion of affordable and sustainable electricity infrastructure. FMO’s investment aims to support activities that contribute to climate mitigation, contributing to SDG 13 and SDG 7, in line with the FMO's methodology to determine the green finance attribution.

What is the Environmental and Social categorization rationale?

The Environmental and Social (E&S) category of this investment is B+, reflecting the potential adverse E&S risks which are largely reversible and can be addressed through appropriate mitigation measures. The E&S risks are typical for a solar power plant and are most prominent during the construction phase. The applicable IFC Performance Standards (PS) are PS 1, 2, 3, 4, 5, 6, and 8. PS7 on Indigenous Peoples is not applicable as there are no Indigenous Peoples in the project area. While the project is not expected to impact on cultural heritage (PS8), mitigation measures including a Chance Find Procedure will be prepared. Key E&S risks identified relate to: (i) worker health and safety, working conditions and contractor management, (ii) economic displacement (no physical displacement will take place), (iii) restricted use of ecosystem services, (iv) and community health, safety, and security. The risks are significantly lower during the operational phase, with a limited number of on-site staff required and limited residual impacts on local communities. Mitigation measures for the project have been developed, and any gaps identified during due diligence have been included in an Environmental and Social Action Plan (ESAP). Risks are expected to be well managed through measures, including a comprehensive Resettlement Action Plan, Livelihood Restoration Plan/ Ecosystem Services Restoration Program, and Stakeholder Engagement Plan. The Environmental and Social Impact Assessment (ESIA), including management plans, will be updated before construction.