Benin stands at a critical juncture in its energy evolution, transitioning from a state of heavy import dependency to a strategy that places resilient renewable energy at the heart of its national development.
Historically, the country has relied on imported power for nearly 95% of its electricity needs, with domestic generation primarily dominated by thermal sources. However, through the updated National Renewable Energy Development Policy (PONADER) for 2020–2030, the government has committed to making renewables the primary source of power by the end of the decade.
This shift is a calculated effort to reduce economic dependence on fossil fuels and meet international climate commitments. The necessity for a solar-centric approach is underscored by the stark disparities in energy access across the country.
While the national electricity access rate reached approximately 57% in 2023, this figure masks a significant urban-rural divide. In urban areas, access is relatively higher, but in rural regions, where grid extension is prohibitively expensive, the rate falls to 43%. Other sources suggest these figures may be even lower, with rural access historically cited as low as 13% to 17%.
To bridge this gap, the Benin National Electrification Strategy (SNE) targets universal access by 2030. Achieving this requires a multi-pronged approach: 39% of new connections are expected to come from grid densification, 13% from mini-grids, and a substantial 39% from standalone Solar Home Systems (SHS).
A major milestone in this transition was the recent mobilization of $2.9 million to finance nine new rural solar mini-grids. This project, led by Mionwa Generation SA (a subsidiary of OnePower), represents a sophisticated blend of financing mechanisms designed to make off-grid electrification commercially viable.
The package includes:
• A $1.5 million secured junior loan from Clean Energy and Energy Inclusion for Africa (CEI Africa).
• A $970,000 secured senior loan raised through the crowdfunding platform Energise Africa.
• Up to $972,000 in results-based grants from CEI Africa, supplemented by an additional $1.66 million from the Universal Energy Facility.
These nine plants will have a combined capacity of 595 kilowatts, paired with 1.7 megawatt-hours of battery storage to ensure continuous service for roughly 4,700 households and local businesses. By providing utility-grade service to communities traditionally left out of the central grid, these projects serve as a blueprint for sustainable, private-sector-led electrification.
Benin’s path to solar expansion has not been without hurdles. Earlier initiatives, such as the Benin Rural Electrification Project (PERU) in 2018–2019, struggled due to poor management. In some instances, a lack of oversight led to the disappearance of solar panels and batteries, leaving installations unattended. Consequently, the government is now pivoting toward Public-Private Partnerships (PPPs) and considering handing over the management of existing mini-grids to the private sector.
To support this transition, capacity-building initiatives like the Benin Energy Plus Project (implemented by ICLEI and GIZ) focus on strengthening local government units. These programmes provide toolkits to help local authorities identify, design, and structure bankable solar PV projects through PPP frameworks. By empowering local actors, the country aims to avoid the management failures of the past and ensure long-term infrastructure stability.
Read Also: Investec-Backed Revego Raises R1 Billion to Expand Solar and Wind Portfolio in South Africa
The expansion of solar energy in Benin extends beyond simple domestic lighting; it is increasingly tied to productive use that drives economic growth. For example, collaboration between GIZ and Energy 4 Impact has promoted solar-powered irrigation for farmers, helping to secure better harvests and increase profitability. Similarly, the “Powering Health” platform has identified 15 rural private hospitals in Benin for off-grid solar installations, ensuring that critical medical services are not interrupted by power outages.
Solar projects are being integrated with environmental preservation. In some regions, solar mini-grid installations are accompanied by reforestation activities. These healthy forests provide habitats for diverse species and allow local communities to engage in beekeeping. The production of honey serves as both a sign of ecological health and a vital source of additional income for rural populations.
Despite the clear political will and increasing investment, significant barriers remain. High import duties (ranging from 5% to 20%) and a 21% Value Added Tax (VAT) on solar products continue to impact affordability for the poorest households. While some waivers exist for quality-verified products under specific donor programmes, the general taxation framework remains a hurdle for market acceleration.
The high cost of rural distribution and a lack of deeply integrated local regulatory involvement continue to challenge the commercial viability of off-grid solutions in the most remote areas.
With a solar radiation potential ranging from 3.5 to 5.5 kWh per square metre per day, particularly in the north, Benin possesses the natural resources necessary to achieve its 2030 targets. Through continued international cooperation and a focus on sustainable private management, the country is well-positioned to transform its energy landscape.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
