ARPF would provide equity for the development and construction of 10 to 15 greenfield renewable energy projects in Sub-Saharan Africa, adding approximately 533MW of installed energy generation capacity from renewable sources in the region. This would provide both base load and peak load power in underserved markets.
ARPF projects would focus on mature technologies including wind, solar PV, small to medium hydro, geothermal and biomass. These would include grid-connected independent power producers (“IPPs”), and decentralized energy projects (commercial & industrial solar, mini-grids, and solar home systems companies).
The Fund’s strategy is to prioritize projects with a clear timeline to financial close, with emphasis on de-risking early stage greenfield projects.
The Bank’s presence is expected to act as a catalyst for other investors to commit a further US$ 60-75 million equity from non-DFI sources. The Bank would also ensure that the highest environmental and social standards, together with climate change and gender considerations, are applied to the ARPF’s projects.
“ARPF will expand the pipeline of bankable energy projects in Africa, and complement and deepen the work of the Bank in this critical area. This is vital for economic growth, and to foster a transition to low carbon across the continent,” Hott added.
The Project is in line with the Bank’s Ten-Year Strategy and High-Five priorities, specifically the New Deal on Energy for Africa, which aims to achieve universal access by 2025. ARPF would also assist governments in meeting their renewable energy objectives through on-and off-grid renewable energy technologies.
In addition to the contribution to renewable energy, the project construction and operation would result in the direct creation of at least 272 full-time jobs and 5,320 part-time jobs.
