Power Africa helps provide funds for energy projects

Power Africa has signed an agreement in advance of the earth day April 22, with FMO, the Dutch development bank, to spur investment in renewable energy across sub-Saharan Africa (SSA).

Through the United States Agency for International Development (USAID), Power Africa will commit $5 million in support of the Climate Investor One (CIO), which finances and helps fast track wind, solar and hydropower projects in SSA.

The CIO targets medium-size renewable energy projects of between 25MW and 75MW, and shares Power Africa’s goal to add 30,000MW of new power generation capacity and 60 million new business and household connections across SSA.

“Power Africa’s support of the Climate Investor One is indicative of our continued investment in renewable energy technologies throughout sub-Saharan Africa,” said Power Africa coordinator Andrew Herscowitz. “From wind parks in Kenya, to solar arrays in Rwanda, and geothermal generation in Ethiopia, Power Africa and our partners are putting the continent’s vast renewable resources to work.

“This agreement with CIO will not only help deliver new access to reliable, affordable, and sustainable electricity, it will help our African government partners boost economic development and tackle climate change at the same time.”

Also, Linda Broekhuizen, chief investment officer of FMO, said: “We are proud of our cooperation with Power Africa to accelerate and simplify the financing of renewable energy projects in Africa. CIO is an innovative climate financing structure that fits very well in our work to empowering entrepreneurs in a sustainably responsible manner.”

USAID’s funding of $5 million will go directly toward renewable energy projects financed by CIO in SSA. To date, the government of the United Kingdom and the Dutch government have also contributed to donor funding.