Like most West African countries, Mali relies heavily on fossil fuels but has significant potential in solar and wind energy. Mali's strategy is oriented towards fostering the development of renewables even though their share, except for hydro, remains rather low.
In 2020, Mali adopted the Desert to Power National Roadmap quantifying its country-level targets, identifying priority actions required to achieve the targets and singling out an initial set of priority activities. The key targets include additional solar capacity of 399 MW by 2025 and 977 MW by 2030.
In March 2021, the Climate Investment Funds unveiled the Renewable Energy Integration (REI) Program, designed to surmount the barriers hindering renewable energy integration in the energy system. This first-of-its-kind CIF-REI program envisions supporting low-and middle-income countries that are transforming their energy systems to absorb ever-growing levels of variable renewable energy generation.
Mali submitted its proposal in 2021 and was selected in October, along with Brazil, Colombia, Fiji, Kenya and Ukraine to take part in the program. These countries were invited to prepare an investment plan supporting the acceleration of the energy transition by improving the functionality and flexibility of energy systems to increase the penetration of renewable energy sources in their electric grids. With a promise for an allocation of up to $70 million for investments and a grant worth $500,000 to prepare the investment plan, Mali took on the challenge.
Collaborating with multilateral development banks (MDB), with the African Development Bank as lead, the World Bank, the International Finance Corporation, the government of Mali began the process of preparing an investment plan with a virtual scoping mission that united national entities from the public and private sectors and civil society organizations towards a common goal.
Mali's Investment Plan was approved in November 2023 using a modular approach with an initial allocation of $32.6 million to be shared between the African Development Bank and the World Bank, and a second allocation of $20 million to be paid out subject to the availability of additional funds, bringing the total allocation to $52.6 million.
Hamathe Mane, Principal Renewable Energy Officer at the African Development Bank, explains, "in the renewable energy sector in Mali, we currently have a penetration rate covering 3% of the demand, which is relatively low. Through this Plan, we aim to achieve a solar penetration rate of 15% by 2030. Concessional financing from the CIF is crucial as it not only catalyzes private sector financing but also attracts funding from other technical and financial partners. For this program, CIF financing is essential. [...] This investment plan will make it possible to leverage additional funds to implement a program totaling $670 million, which is extremely important for the country."
Mali had been selected as a pilot country in July 2010 for CIF's Scaling-up Renewable Energy Program (SREP), in recognition of its climatic, environmental and energy challenges. Through strategic coordination and with the benefit of the SREP experience, Mali, led by its ministry of energy and water, prepared its CIF-REI Investment Plan, which was aligned with national energy sector development policies, to propel large-scale investment in renewable energy integration, echoing the country's commitment to a sustainable future.
The Mali Investment Plan was lauded by the CIF's Global Climate Action Programs (GCAP) sub-committee for the quality and richness of its content. It covers three key components and fourteen activities that range from stimulating investments in flexible solutions to increasing the share of renewable energy sources, including storage systems, to building national electricity transmission networks and interconnections, and establishing green mini grids with associated storage systems. Technical assistance will also be provided to support governments in setting up suitable policies and an enabling environment for renewable energy development.
Moussa Ombotimbe, Technical Advisor in charge of Energy at the Ministry of Mines, Energy, and Water of the Republic of Mali, states that the "plan includes creating solar power plants, the inclusion of transmission lines, the establishment of mini-grids, and capacity building, making it comprehensive."
It will serve as a strategic guidance framework for the government of Mali's policies and priorities in its efforts towards zero net emissions and inclusive, climate resilient development pathways.
The development of Mali's investment plan coincided with the completion of the REI study financed by the African Development Bank through its Transition Support Mechanism, complementing the REI program, analyzing its technical and economic aspects, including the financial impact of integrating a growing share of intermittent renewable energies into Mali's electrical system.
The study identified a potential of 1,400 MWp of solar capacity to be installed by 2035 on the Malian electrical grid, requiring an investment of €1.146 billion for the production system, €259 million for the storage system, and €102 million for the development and reinforcement of the electrical grids. A validation workshop to disseminate the results of the study to the Malian public will be organized by the Bank in April/May 2024.
With the support of the African Development Bank and financing from CIF the government of Mali organized an official launch of the investment plan during the third edition of the Malian Renewable Energy Week (SemR) from 29 February to 2 March 2024 to inform the public of the plan's existence and of the opportunities it would provide.
Abdoul Kassim Fomba, Minister of Youth and Sports, responsible for civic education, representing the Prime Minister, patron of SemR 2024, stated, "I think this plan will provide our country with some autonomy for many years to come. Having all these national and international resources supporting the political will here on renewable energy development is, I believe, a great opportunity for our country to place itself among the leaders in terms of energy production."
Aminata Fofana, Director of Energy: "We have emphasized the development of transmission lines, and in doing so, we will foster the growth of associated solar power plant and channel their production into this network. This investment plan will support the renewable energy sector and the energy sector as a whole, thereby contributing to overall electrification. [...] It will enable us to change our energy mix in Mali such that 30% of our energy will come from renewable sources by 2030."
Mali is ripe for the steady transition from its fossil fuels-laden past to a cleaner green-energy future for its socio-economic growth according to its investment plan.
