AFRICA – The Africa Renewable Energy Fund II has achieved its first close at €130 million (US$155.54m), following a joint investment of €17.5 million (US$20.94) from The Sustainable Energy Fund for Africa (SEFA) and the Climate Technology Fund (CTF) through the African Development Bank.
The Africa Renewable Energy Fund II, managed by Berkeley Energy, invests in early-stage renewable energy projects, thereby not only de-risking the most uncertain phase of power projects, but also promoting increased green baseload in Africa’s generation mix.
The Sustainable Energy Fund for Africa and the Climate Technology Fund will each contribute roughly €8.7 million (US$10.41m) to mobilize private-sector investment into Africa’s renewable energy sector.
Joao Duarte Cunha – Manager, African Development Bank
“We are proud to be associated with Berkeley Energy and other like-minded investors and look forward to AREF’s continued success and leadership in promoting sustainable power development on the continent,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.
In 2012, the African Development Bank selected Berkeley Energy, a seasoned fund manager of clean energy projects in global emerging markets to set up AREF. AREF II has a sharper strategic focus than its predecessor on “green baseload” projects that will deliver firm and dispatchable power to African power systems through hydro, solar, wind and battery storage technologies.
“We are very excited to have reached this milestone with strong support from our backers. The catalytic tranche from the Sustainable Energy Fund for Africa and the Climate Technology Fund will assist in mobilising private institutional investors up to full fund size of €300 million (US$358.93m),” Luka Buljan, Berkeley Energy’s Managing Director, said.
“We now look forward to concluding the fundraising and delivering projects that will provide clean, reliable and affordable energy across African markets.”
Real Estate and members of hospitality, manufacturing and other industry players can now heave a sigh of relief as and investments have secured funds to pre-finance electrification projects in the renewable sector especially in solar.
“AREF is intertwined with the Sustainable Energy Fund for Africa’s history and success, and we have worked closely over the last decade to create precedents in difficult markets and challenging technologies,” said Joao Duarte Cunha, Manager for Renewable Energy Initiatives at the African Development Bank and Coordinator of the Sustainable Energy Fund for Africa.
The project funding which is aimed at achieving the clean energy targets of the UN SDG goals has been put together to provide funding for projects that want to move from fossil fuels into renewable energy in Ghana and on the African Continent