Mauritania has taken a decisive step toward a sustainable energy future. Dubai-based Iwa Green Energy has signed a USD 300 million agreement to develop Mauritania’s first Independent Power Producer (IPP) project — a 60 MW hybrid solar-wind facility scheduled for completion in September 2026. 🌍⚙️🔋
This initiative is among the first projects to emerge under the African Development Bank’s (AfDB) Desert to Power Initiative, launched in 2019 to harness the immense renewable energy potential of the Sahel region. 🌞🌍🌾
Project Overview and National Impact ⚡ 🌍📈🔆
Mauritania’s current installed capacity stands at approximately 450 MW, with fewer than 10% of rural households connected to the grid. The new Iwa Green facility will not only expand generation capacity by over 13%, but also serve as a benchmark for private-led energy projects across West Africa. ⚡🏗️📊
According to Economy and Finance Minister Sid’Ahmed Ould Bouh, this landmark project demonstrates the confidence of private investors in Mauritania’s commitment to energy diversification and sustainable growth. 💡🤝🌱
Backed by a fully private financing structure, the project alleviates pressure on public debt while ensuring technology transfer and local participation. The Mauritanian government’s target of 70% renewable generation by 2030 under President Mohamed Ould Cheikh El Ghazouani’s Mission 300 Energy Compact aligns perfectly with this initiative. 🎯🌍💪
Desert to Power: A Regional Framework for Private Investment 🌞 ⚙️🌍📜
The project was developed under the Desert to Power IPP Joint Protocol, a standardized investment framework endorsed by the African Development Bank to streamline private participation in the energy sector across 11 Sahelian countries. The protocol offers standardized Power Purchase Agreement (PPA) templates, transparent tariff structures, and regional risk mitigation tools — essential instruments for attracting private capital. 🏦📊🪙
Daniel Schroth, AfDB’s Director of Renewable Energy and Energy Efficiency, noted that Mauritania’s implementation of the protocol showcases its effectiveness as a bankability enabler in frontier markets. 💬🌍✅
Financial Modelling & Bankability Considerations 📊 💰📈🔋
For investors and financial modellers, the Iwa Green IPP presents an interesting case study in hybrid energy project structuring. Combining solar and wind allows for a more balanced generation profile and smoother revenue projections — a key factor in achieving stable cash flows and optimized IRRs. ⚡📉💹
In a typical financial model for such a project, analysts would consider:
- Resource complementarity modelling: Using hourly generation data to forecast variability and correlation between solar and wind outputs.
- Tariff setting: Aligning levelized cost of energy (LCOE) with regional benchmarks (typically USD 0.06–0.10/kWh for hybrid systems in West Africa).
- Debt structuring: With fully private financing, lenders are likely to favor a 70:30 debt-to-equity ratio, supported by political risk guarantees from institutions like ATIDI or MIGA.
- Sensitivity analysis: Evaluating impacts of currency devaluation, grid availability, and wind/solar yield variability on project IRR and DSCR (Debt Service Coverage Ratio).
Such modelling is fundamental to ensuring the project’s bankability and to mitigating risks typical of first-of-its-kind transactions in emerging markets. 📈💼⚙️
A Turning Point for Mauritania and the Sahel 🌱 🌍🌀⚡
Mauritania’s engagement with Iwa Green Energy sets a precedent for private sector-led renewable energy expansion in the Sahel. By aligning with the AfDB’s Desert to Power roadmap, the country is positioning itself as a regional leader in green energy transition. 🌾📊🌍
Beyond its direct impact on power supply, the project is expected to: ⚙️📈💡
- Create over 400 jobs during construction.
- Enable local capacity building in hybrid renewable operations.
- Support regional grid integration through potential exports to neighboring countries.
As the Sahel continues to attract investors seeking sustainable opportunities, Mauritania’s IPP model could become a replicable blueprint for other nations aiming to mobilize private capital while accelerating their energy transitions. 💸🌍📈
Conclusion: Financing the Future of Clean Energy in Africa 🌍 💰🌞🌱
The USD 300 million Iwa Green IPP demonstrates that well-structured financial frameworks and strong institutional backing can unlock massive renewable energy potential — even in frontier markets. For financial modellers and investors alike, Mauritania’s approach offers valuable lessons on how policy, partnership, and project finance converge to power a more sustainable future. 🌍⚡📊
Author’s Note: The financial modelling perspective in this article is inspired by project finance practices in hybrid renewable systems. For detailed modelling methodologies, explore the Finteam Wind Energy Project Finance Model on Eloquens here. ✍️📘🔗
Finteam 