Mauritania Signs $300 Million Deal for Its First Independent Power Project

Mauritania has taken a major step toward reshaping its energy landscape, signing a $300 million agreement with Dubai-based Iwa Green Energy to develop its first-ever independent power project (IPP), a hybrid solar and wind facility that could redefine how the country powers its future.

The project, backed by the African Development Bank’s Desert to Power Initiative, marks a critical shift in Mauritania’s energy model: from heavy state dependence to privately financed, renewable-driven infrastructure. It’s the clearest sign yet that the Sahel nation wants to anchor its development on clean energy rather than fossil fuels.

A First for Mauritania

The deal represents Mauritania’s entry into the IPP space, where private investors finance, build, and operate power plants before selling electricity to the national grid. Until now, Mauritania’s energy system relied almost entirely on state-led generation, often limited by funding and outdated infrastructure.

Under this partnership, Iwa Green Energy will design, finance, and operate a hybrid solar-wind plant reportedly valued at up to 220 MW in total capacity, with an expected completion date of September 2026. Some reports, however, put the firm capacity closer to 60 MW, suggesting part of the investment may go into grid storage and stability systems.

Despite the variation in figures, the project’s ambition is clear: expand renewable capacity while easing pressure on public debt. The Mauritanian government emphasized that the IPP model allows the country to “develop new energy infrastructure without adding to sovereign liabilities.”

Strategic Impact and Goals

Mauritania’s current installed power capacity sits at roughly 450 MW, serving a population where electricity access remains limited, especially in rural areas. The government’s goal is to reach 70% renewable energy by 2030, and this deal is a cornerstone of that target.

By combining solar, wind, and potentially battery storage, the project aims to deliver more stable electricity output, critical for a country where weather extremes can affect generation reliability.

It also signals growing investor confidence in the Desert to Power Initiative, an AfDB-led framework designed to mobilize $20 billion for renewable energy across 11 Sahel countries. Mauritania’s success could serve as a regional case study for how public-private partnerships can unlock clean energy development in fragile markets.

The Economics Behind the Deal

The $300 million cost has raised some eyebrows. For comparison, similar-scale solar projects in Africa typically cost less per megawatt. The difference here may come from the hybrid structure, energy storage, and high transmission costs in desert terrain.

Still, Mauritania’s decision to structure the deal as an IPP, without direct public borrowing, is a strategic move. It shields the government from taking on additional debt while transferring part of the financial risk to private investors. However, it also introduces new layers of complexity: long-term power purchase agreements (PPAs), tariff negotiations, and regulatory oversight that Mauritania has limited experience managing.

If the deal succeeds, it could create a model for future renewable projects in the country, and potentially across the Sahel. If it falters, it might expose the challenges of pioneering private-sector energy models in underdeveloped regulatory environments.

A Step Toward Regional Energy Transformation

Beyond Mauritania, the project reinforces a growing pattern in Africa’s energy landscape. Countries like Senegal, Ghana, and Egypt have already seen IPPs transform their generation mix and attract foreign capital. Mauritania’s entry into that space is overdue but significant.

The plant, to be built under the Desert to Power framework, aligns with regional ambitions to turn the Sahel into one of the world’s largest solar generation zones. The project’s success will depend on execution, timely construction, stable regulation, and the national utility’s ability to absorb new power.

With operations targeted for September 2026, the countdown is on. Mauritania’s hybrid solar-wind IPP could either stand as a landmark in its clean energy story or a cautionary lesson in the challenges of first-generation private projects.

For now, it represents a crucial bet on a renewable future, and one the region will be watching closely.