In July 2025, ACWA Power signed a USD 800 million water-purchase and public–private partnership agreement with the Senegalese government to build the Grande‑Côte seawater desalination plant, entirely powered by renewable energy.
The plant will deliver up to 400,000 m³/day of potable water to Dakar and its surrounding metropolitan area, making it the largest desalination project in West Africa.
Key Details
- Capacity & Phasing: Built in two phases, with two units each producing 200,000 m³/day, totalling 400,000 m³/day in eventual capacity.
- Renewable Energy Integration: The entire facility will operate on green electricity sourced via a dedicated agreement with SENELEC, positioning it among the few global desalination plants to run fully on renewables.
- Timeline & Financing: Financial close is expected by 2026, with full commercial operations by 2031. The contract is structured as a long-term 32-year water purchase agreement.
Why It Matters
- Critical Water Security Initiative: Dakar and the broader Dakar‑Mbour‑Thiès corridor face rising water shortages. Demand is projected to increase by up to 60% by 2035, underscoring the urgency for new infrastructure.
- Combination of Infrastructure Needs: This is Senegal’s first PPP desalination project, signaling both innovation in public–private collaboration and a move toward sustainable infrastructure.
- Environmental Alignment: By relying on solar and possibly wind energy, the project supports Senegal’s emissions reduction goals, complementing other renewable projects such as the Taïba N’Diaye wind farm (158 MW) and Diass solar (23 MW).
Background & Precedent
In September 2022, ACWA Power signed MoUs with Senegal’s SONES and SENELEC for a 300,000 m³/day seawater reverse osmosis plant and a 160 MW gas-to-power plant. This was positioned as Sub-Saharan Africa’s largest desalination PPP, part of Senegal’s broader Plan Sénégal Émergent initiative.
In July 2024, Senegal’s new government under President Bassirou Diomaye Faye cancelled the 2024 contract, citing unsustainable costs and unfavorable terms signed late in the previous administration of Macky Sall. The original agreement had projected water pricing that raised affordability and fiscal concerns.
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The 2025 renegotiation reframes the deal: two smaller units totalling the same output, an expanded solar component (300 MW of solar to power operations and supply surplus electricity to the grid), and reduced pricing and fiscal burden. Government payments are cut by 12.5% in early phases, increasing to 25% reductions from 2030 onward, and water costs trimmed by about 10% per cubic meter compared to the initial structure.
Senegal’s Renewable Push
Senegal has committed to increasing renewable energy to 40% of its energy mix by 2030, backed by a Just Energy Transition Partnership with international donors including France, Germany, the EU, UK, and Canada, amounting to a €2.8 billion package.
Existing renewable installations include the Taïba N’Diaye wind farm (158.7 MW) and Diass solar facility (23 MW). These initiatives underpin the nation’s energy transition and inform the technical viability of powering desalination with renewables.
ACWA Power’s Global Footprint
ACWA Power is a leading energy and desalination developer, operating across 14 countries with a portfolio exceeding 9.5 million m³/day water desalination capacity and 78.85 GW of power generation under management or development. The company is majority-backed by Saudi Arabia’s Public Investment Fund, and is deeply engaged in renewable and green hydrogen initiatives globally.
Implications & Investor Perspective
For Senegal
- Water resilience: Secure, large-scale desalinated water supplies will support urban growth, industrial development, and climate adaptation in Dakar.
- Local value creation: The PPP structure and state participation in the power and water utility reinforce national ownership and capacity building.
For Investors
- ESG alignment: The deal blends environmental sustainability (renewable-powered desalination), social impact (access to drinking water), and governance through PPP structure.
- Financial design: Reduced government payments and scaled pricing provide predictability. The power offtake from surplus electricity offers an additional return stream.
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The Senegal–ACWA deal sets a template for renewable-driven desalination in emerging markets, a model potentially replicable across water-stressed coastal regions in Africa and beyond.
Risks & Sustainability Considerations
- Regulatory and policy stability: Long concession contracts require political continuity; shifts could affect project viability.
- Environmental and technical feasibility: Desalination presents brine disposal challenges and high energy demands; careful engineering and ecological safeguards are essential.
- Local capacity: Achieving operational success will hinge on workforce training and technology transfer to Senegalese partners.
