Burkina Faso
With a cumulative score of 1.5, Burkina Faso ranks number 48 among emerging markets and number 77 in the global ranking.
- Emerging markets
- Middle East & Africa
1.83 / 5
Power score
0.75 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Burkina Faso does not have a net zero goal or strategy.
Nationally Determined Contributions (NDC)
Burkina Faso has a business-as-usual Nationally Determined Contribution (NDC) as its official plan to cut emissions under the Paris Agreement. The targeting sectors are energy, agriculture, waste, and energy (including electricity production, transportation, residential and tertiary, and manufacturing industries, housing etc).
Fossil fuel phase-out policy
Burkina Faso does not have a fossil fuel phase-out plan. The country does not have enough capacity to phase out their fossil fuel plants.
Power
Power policy
Burkina Faso aims to have 55% of installed capacity from renewable sources, defined as solar, hydraulic, wind, and biomass, by 2022. The country recently implemented an auctions policy intended to increase solar projects in rural areas. To date, the total capacity awarded in tenders is 164 megawatts, but only 60 megawatts have reached financial close.
Power policies
Power prices and costs
Burkina Faso aims to have 55% of installed capacity from renewable sources, defined as solar, hydraulic, wind, and biomass, by 2022. The country recently implemented an auctions policy intended to increase solar projects in rural areas. To date, the total capacity awarded in tenders is 164 megawatts, but only 60 megawatts have reached financial close.
Power market
The power market in Burkina Faso is dominated by oil and diesel plants with a small amount of capacity from small hydro and biomass. Solar capacity has increased 44% since 2019. New capacity can be added through power purchase agreements, which are done on an individual basis and paid in CFA francs.
Sonabel, the state-owned utility provider, used to dominate all segments of the power market, but now companies are able to establish capacity to provide generation. However, companies are not able to establish enough to compete with Sonabel. In rural areas, cooperatives are involved with generation, but there is no competition in urban areas. However, there are plans and projects in place to expand the grid.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Burkina Faso has some opportunities within the power market. The country is aiming for a 60% electrification rate by 2022 and currently sits at 20%.
There are barriers to doing business in Burkina Faso. The regulatory framework is complex, as investors need to obtain a license and negotiate tariffs with Sonabel. There are no regulatory deadlines in the treatment process in addition to little clarity concerning the role of the energy regulator, ARSE. A further obstacle to investors aiming to sell power to the national utility is Sonabel's lack of financial stability and dependence on subsidies. Moreover, few incentives are in place to attract new business, as standards are not implemented (e.g. concerning taxation). Further hindering factors are the large distances and meteorological conditions. Notwithstanding, multiple sources stated that Burkina Faso is the easiest country in the region to work in.
Currency of PPAs
Are PPAs signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Transport
EV market
The government has yet to implement any substantive policy support in this sector and the EV market remains at an early stage.
EV policy
The government has yet to implement any substantial policy support in the sector and the EV market remains at an early stage.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
Energy efficiency plan
Does the country have a national energy efficiency plan?
Energy performance standards
Are there minimum energy performance standards for buildings?
Buildings policy
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
