AFRICA – The
African Development Bank Group (AfDB) has approved an equity investment worth US$25
million in ARCH Africa Renewable Power Fund (ARPF) to support renewable energy
projects across Africa.
from AfDB comes as part of a US$250 million private equity fund that seeks to
support the initiative.
ARPF will subsequently
provide equity for the development and construction of 10 to 15 Greenfield
renewable energy projects in Sub-Saharan Africa, reports Digest Africa.
This will boost
the current installed energy generation capacity in the continent which stands
at about 533 Mega Watts (MW) providing both base load and peak load power in
the Bank’s Vice-President for Power, Energy, Climate Change & Green Growth,
said that the investment is aimed at promoting sustainable energy sourcing
across the continent.
investments in Africa are constrained by limited well-structured, bankable
projects, as well as by unavailability of risk capital.
technologies require additional support to be fully competitive over fossil
fuel-based energy generation.
will expand the pipeline of bankable energy projects in Africa, and complement
and deepen the work of the Bank in this critical area.
is vital for economic growth, and to foster the transition to low carbon across
the continent,” said Hott.
The green energy
projects to be financed by ARPF will focus on mature technologies centred on
Solar Power harnessing, medium hydro, geothermal and biomass.
also include grid-connected independent power producers (“IPPs”), and
decentralized energy projects (commercial & industrial solar, mini-grids
and solar home systems companies).
ARPF, priority will be given to projects with a well-established and clear
timeline to financial close with great considerations on de-risking early stage
will also boost state governments’ renewable energy objectives as the fund is
expected to reach first close in early 2019.
In addition to the contribution to renewable energy, the project construction and operation will result in the direct creation of over 270 full-time jobs and 5,300 part-time jobs.
ARPF is a
private equity fund for renewable energy projects across Sub-Saharan Africa with
its anchor investing entity as ARCH Emerging Markets Partners Ltd, a London-based
emerging-market investment joint venture.