Senegal’s Ambitious Plan to Slash Electricity Costs and Boost Energy Security

The government of Senegal has ambitious energy diversification aims, with plans to develop both the country’s oil and gas sector and grow its renewable energy capacity. As part of its Vision 2050 plan, the government aims to reduce energy costs and enhance energy security by diversifying energy sources. The government has announced several renewable projects in recent years and has recently made blocks available for oil and gas exploration to achieve these aims.Some of the government’s principal aims include expanding Senegal's energy production capacity to meet growing power demand, advancing regional energy integration, shifting from heavy fuel oil to domestic natural gas, and increasing energy access in rural areas. Senegal remains heavily dependent on petroleum products for electricity generation, with oil-based fuels accounting for approximately 72.5 per cent of national power production in 2024, according to government figures.Senegal also faces high electricity generation costs, estimated at between 34 and 38 US cents per kilowatt-hour by the U.S. International Trade Administration. Consumers pay roughly 24 cents per kilowatt-hour, with the government covering the difference through subsidies. Reducing dependence on expensive liquid fuels through greater use of domestic natural gas and renewable energy could help lower generation costs and ease the financial burden on the government.As part of the previous administration’s “Gas to Power” strategy, the government sought to achieve universal access to electricity by 2025, convert heavy fuel oil power plants to LNG, and achieve an electricity production mix of 40 per cent renewable energy by 2030. To date, Senegal has still not achieved universal electricity access, although access has expanded significantly in recent years, to around 84 per cent by 2023.As part of its Vision 2050, the government now aims to raise electricity production from 1.74 GW to 12 GW by the mid-century. Senegal has also begun to gradually reduce its reliance on heavy fuel, with its 335-MW Bel Air power plant undergoing conversion to run on LNG.Senegal had a total installed renewable electricity capacity of approximately 624.8 MW in 2025, up from just 56 MW in 2014. In 2023, solar power accounted for around 49 per cent of the renewable energy mix, while wind power contributed 35 per cent, and hydropower 16 per cent.In April, the renewable energy company AXIAN Energy completed the financing of the NEA Kolda photovoltaic plant in Casamance, southern Senegal, after starting work on the project with its own funding in May 2025. The €90 million project will include 60 MW of solar PV capacity as well as a 72-MWh battery storage system. The recent finance package of €72 million was structured by the Emerging Africa and Asia Infrastructure Fund and FMO. Senegal’s national electricity company, Senelec, has signed a 25-year power purchase agreement with AXIAN to supply clean power to more than 235,000 households.In July, SEN’EAU, a Senegalese water utility jointly owned by SUEZ and Senegalese stakeholders, partnered with TotalEnergies to inaugurate two solar plants in Senegal’s Thiès and Louga regions. The projects include 33,600 solar panels at drinking water facilities with a combined installed capacity of 21 MW, covering up to 32 per cent of these sites’ energy needs. The project aimed to reduce energy costs and the carbon footprint of Senegal’s drinking water sector.The Taiba N’Diaye wind farm, which commenced operations in 2021, is Senegal’s first large-scale wind energy project, with 46 turbines and a generating capacity of 158.7 MW, providing clean power for more than 2 million people. The project increased Senegal’s electricity capacity by around 15 per cent.Regarding fossil fuel expansion, in October the Energy and Petroleum Minister, El Hadji Abdourahmane Diouf, announced the availability of 104 oil and gas blocks to attract investors and accelerate exploration and production. Out of a total of 113 blocks reorganised in the acreage in March 2026, including 65 onshore and 48 offshore, four are already under contract, and five are undergoing technical studies by Italian oil major Eni.Senegal’s state-owned pipeline operator, Réseau Gazier du Sénégal (RGS), is seeking an additional €530 million in financing to expand its network, aiming to supply natural gas to several power stations by 2029. This aligns with government aims to reduce dependence on heavy fuel by transitioning to natural gas to support Senegal’s growing electricity demand.In September, RGS commenced the first €275 million stage of its planned 400 km underground pipeline distribution network, which will connect the offshore Greater Tortue Ahmeyim gas field to a 250-MW gas-fired power plant in northern Senegal. The firm plans to complete upgrades in several phases, eventually connecting Greater Tortue Ahmeyim to other power plants.The government of Senegal is pursuing an ambitious energy diversification strategy that aims to reduce reliance on expensive heavy fuels and transition to natural gas and renewable energy. It is currently seeking investment in its oil and gas sector to conduct exploration operations, which could support both energy security and economic growth. By Felicity Bradstock for Oilprice.comMore Top Reads From Oilprice.comOil Prices Head for Fourth Monthly Gain as Middle East Tensions EscalateInvestors From 119 Countries Pile Into Dangote’s Record Refinery IPOU.S. Lawmakers Warn Banks Against Trump's Russian Diesel Deal