Burkina Faso
With a cumulative score of 1.36, Burkina Faso ranks number 67 among emerging markets and number 96 in the global ranking.
- Emerging markets
- Middle East & Africa
1.60 / 5
Power score
0.81 / 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’s Nationally Determined Contribution (NDC) – a non-binding plan to achieve the goals set out in the Paris Agreement – has two parts. The unconditional target is CO2 reduction of 19.6% by 2030 compared to the base year 2015. The conditional target is CO2 reduction of 29.42% by 2030. The targeted sectors are energy, agriculture, waste, and energy (including electricity production, transportation, residential and tertiary, and manufacturing industries as well as housing).
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 its 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. It is unlikely the country will meet its 2022 target by end of year and there is no submitted updated target. The country recently implemented an auctions policy intended to increase solar projects in rural areas. As of August 2022, the total capacity awarded in tenders was 164 megawatts, but only 60 megawatts had reached financial close.
Power policies
Power prices and costs
Burkina Faso subsidizes power for low-income consumers. Tariffs are set annually, with 2020 being the first year that the country specified tariff rates by subsector. Electricity prices rose by about 130% for all consumers in response to high commodity prices. Tariffs are also time-based with a higher tariff during peak hours. Fossil fuels are subsidized in the country, but fossil-fuel subsidy reform is under discussion.
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 50% since 2020. New capacity can be added through power purchase agreements, with payments in CFA francs.
Sonabel, the state-owned utility provider, used to dominate all segments of the power market, but now private sector companies are able to set up 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 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. Investors need to obtain a license and negotiate tariffs with Sonabel. There are no deadlines for application processing in addition to little clarity on the role of the energy regulator, l'Autorité de régulation du secteur de l'énergie (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 businessHowever, multiple sources stated that Burkina Faso is the easiest country in the region to work in.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) 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?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
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 substantive policy support in this sector.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Burkina Faso implemented Minimum Energy Performance Standards for all their buildings. Specifically, the country has targeted cooling efficiency.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
There are no specific laws.
Buildings policies
Additional insights
from BNEF
Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
Powered by
