The World's #1 Renewable Energy Network for News, Information, and Companies.

African Renewable Energy Fund Secures $100 Million for Sub-Saharan Renewables Development

The African Renewable Energy Fund (AREF) has raised $100 million for the development of grid-connected renewable energy projects in sub-Saharan Africa.

The fund, set to be managed by Berkley Energy Africa, will be distributed to independent power producers (IPPS) for 5- to 50-MW solar, small hydro, wind, geothermal, biomass and waste gas projects. AREF will commit $10-30 million to the development stage of each project, and larger projects may be able to acquire additional funding. AREF hopes to raise an additional $100 million for the fund within the next 12 months.

The African Development Bank (AfDB) is the fund’s lead sponsor, contributing $65 million. It also brings significant financial knowledge and experience through its ties with other initiatives such as Sustainable Energy for Africa (SEFA), which will also set up a Project Support Facility to aide development at early stages to broker bankable projects.

AfDB is also heavily involved in the Sustainable Energy for All (SE4All) initiative led by the United Nations and The World Bank.  SE4All strives to achieve global access to electricity and safe fuels and to double the share of renewables adoption and energy efficiency improvements worldwide — all by 2030.

As the Africa hub for this initiative, AfDB is a “prime catalyst for renewable energy investment on the continent,” said AfDB regional director for the East Africa Regional Resource Center Gabriel Negatu in a release. “As Africa’s largest infrastructure finance partner, we understand the value of supporting both large-scale and small-scale projects as part of our strategy for Africa to promote inclusive and sustainable growth.”

Other investors include the African Biofuel and Renewable Energy Company (ABREC), which co-founded the inititaitve with AfDB, the West African Development Bank (BOAD), the Nigeria-based Ecowas Bank for Investment and Development (EBID), Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), and the U.S.-based non-profit the Calvert Foundation.

“The launch of a first pan-African dedicated renewable energy fund, with a center of gravity in Africa, sourcing a majority of its capital from Africa at an exciting time in the evolution of macro-economic factors in Africa’s favor, presents a propitious environment for the investment of AREF,” Berkeley Energy’s managing partner TC Kundi said in a release. “We aim…to ensure that a part of Africa’s growing need for power is met through responsibly developed clean energy projects that improve the generation mix and maximize the use of local resources.”

Lead image: Africa map via Shutterstock

RELATED ARTICLES

Rooftop Solar Panels

Hypocrisy? While Buffett Champions Renewables, His Company Fights Rooftop Solar

Mark Chediak, Noah Buhayar and Margaret Newkirk, Bloomberg Warren Buffett highlights how his Berkshire Hathaway Inc. utilities make massive investments in renewable energy. Meanwhile, in Nevada, the company is fighting a plan that would encourage more residents to use green power.
Japan Microgrid

Born from Disaster: Japan Establishes First Microgrid Community

Junko Movellan, Correspondent Although Japan's Fukushima prefecture is most commonly associated with the 2011 disaster due to the nuclear power melt-down, Miyazaki prefecture, located north of Fukushima, suffered from the largest death toll, close to 10...
Renewable Energy Finance

Clean Energy ETFs Are on a Tear

Eric Balchunas, Bloomberg Green investing used to be synonymous with losing money. But while the S&P 500 Index is up 2 percent this year, and the MSCI All-Country World Index is up 5 percent, clean energy ETFs have double-digit re...

Wheels, Towers and Trees: Unconventional Renewable Energy Technologies in the Pipeline

Andrew Williams, International Correspondent A number of companies around the world are developing novel technologies in an effort to grab a slice of the global renewable energy market.  Although many of these technologies are simple incremental improvements to e...
Renewable Energy World's network editors help deliver the most comprehensive news coverage of the renewable energy industries. Based in the U.S. and the UK, the team is comprised of editors from Pennwell Corporation's myriad of publications that ...

CURRENT MAGAZINE ISSUE

03/01/2015
Volume 18, Issue 3
file

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in Brazil – in partnership with GWEC, the Global Win...

Brazil is one of the most promising markets for wind energy.  Ranke...

EU PVSEC 2015 (European PV Solar Energy Conference and Exhibition)

The EU PVSEC is the largest international Conference for Photovoltaic re...

Energy Security: Opportunity Power with the Sunny Boy Secure Power ...

Wouldn’t it be great to have a grid-tied inverter that could still...

COMPANY BLOGS

EU PVSEC 2014 extends its Scope

Added focus on application and policy topicsAbstracts for conference con...

EU PVSEC 2014: Call for Papers Receives Great Response

More than 1,500 contributions apply for presentation in AmsterdamScienti...

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS