Description: 

$15.4 million in SREP grant funds to expand renewable energy deployment throughout rural Mali; creating jobs, alleviating air pollution that threatens public health, and increasing energy security.

Background:

A country struggling with poverty and widespread gender disparities, current rates of access to electricity in Mali are estimated at 30 percent nationally. This figure corresponds to an access rate of 55 percent in urban areas and 18 percent in rural areas. Mali is faced with structural barriers impeding its efforts to increase access to electricity, including the high cost of new generation and the dependency on petroleum product imports. About 80 percent of household energy needs remain satisfied by biomass resources (wood and charcoal), which cause health problems among the rural population through indoor air pollution, and aggravate environmental problems such as deforestation and land degradation.

The Mali Rural Electrification Hybrid System Project will leverage $15.4 million in SREP grant funds to expand rural access to modern energy services and to increase renewable generation in areas with no prospects of becoming connected to the national electricity grid in the next decade.

Objectives and Outputs:

The project is expected to increase the renewable energy installed capacity in approximately fifty of the existing rural mini-grids and facilitate subsequent gradual expansion of renewable energy fueled mini-grids to underserved areas. In addition to infrastructure investments, the project will promote the market for energy efficient products and will provide extensive capacity building in the rural energy services sub-sector and for the institutional strengthening of the rural electrification agency, AMADER.

The target annual electricity output from renewable energy as a result of SREP interventions in Mali is 8,653 MWh per year from a 4.8 MW installed capacity. It is expected that 571,838 people will be provided with access to electricity by off-grid household connection, of which half will be women. The project is anticipated to avoid 6,868 tCo2e per year and 137,365 tCo2e over a 20 year period.

The direct project beneficiaries include currently connected rural households and businesses, which will benefit from a more reliable energy supply and expanded service hours, rural consumers (households, businesses, communities and facilities) that will gain access to electricity as well as innovative lighting products under the project, and individuals trained in installations and operations of new technologies. Other indirect beneficiaries of the project include rural mini-grid operators, private photovoltaic dealers and contractors, and lighting product retailers who will have an expanded market, and actors throughout the value chain for delivering lighting and renewable energy products in Mali.

The project will support the Government of Mali's efforts to scale-up rural electrification through the introduction of hybrid Solar PV/diesel generation in rural mini-grids and installation of stand-alone systems when the cost of mini-grids expansion is not economically justifiable. The transformational impact of the project will be essential to achieve standardization and scaling-up of least-cost off-grid electrification options in Mali.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

IBRD Portal

Project Details
Cover Note | Project Document | Proposed Decision | Presentation
Approved on October 17, 2013 (Approved Decision)
Approved amount(s):
USD 14.9 million (grant funding)
USD 428,000 (project implementation)
USD 228,000 (Final tranche)