Support for Senegal’s Renewable Energy and Energy Efficiency Fund (REEF)

In 2017, Senegal’s Strategic Investment Fund (FONSIS) began setting up a specialised fund intended to remove obstacles to private sector financing of renewable energy and energy efficiency projects. The name? Renewable Energy and Energy Efficiency Fund, or REEF.

To prepare its operationalization, we conducted a market study and feasibility assessment aimed at determining the new fund’s potential for investment in five possible market segments, including on- and off-grid renewable energy projects and energy efficiency projects for small-medium enterprises (SMEs), taking into account the sector’s financing needs and other available financial instruments. The study helped identify a pipeline of projects—it also issued recommendations for the fund’s shareholding structure, its governance, its investment strategy, its positioning in the marketplace, and the financial instruments it should develop.

Now complete, the study will help accelerate the development of renewable energy projects in Senegal, reduce electricity tariffs and spending for oil imports, and ultimately reduce greenhouse gas emissions.