Senegal has taken an important step towards its energy transformation ambitions by signing a $2.7 billion Just Energy Transition Partnership (JET-P) contract with G7 nations and the European Union (EU).
The agreement intends to help Senegal achieve its goal of increasing the amount of renewable energy in its energy mix to 40% by 2030.
The JET-P will unlock financial support from France, Germany, the EU, the United Kingdom and Canada, totaling $2.7 billion over a period of three to five years, and starting as early as 2023.
Additional financing may be made available at a later date to assist Senegal in meeting and exceeding its renewable energy objectives.
Previously, similar agreements were made with South Africa, Indonesia and Vietnam.
Under the terms of the JET-P deal, over the next 12 months, Senegal will be required to develop an investment plan identifying avenues for investment that ensure a just and equitable energy transition.
This strategy will outline the capital required to assist the country in transitioning to cleaner, more sustainable energy sources.
The EU’s JET-P financing for Senegal comes from its €300 billion Global Gateway investment initiative, which aims to create a favorable environment for private businesses.
The funding plan is intended to attract long-term investments of $15 billion to $20 billion.