The African Development Bank (AFDB) has received an investment fund of $20 million from the Clean Technology Fund (CTF). The CTF aims to provide financing for small-scale renewables in Africa. The funds will help scale innovative solutions that will provide energy inclusion.
The CTF investment fund is made up of $4 million junior equity tranche and a $16 million senior concessional loan.
The investment would be a part of the Dedicated Private Sector Program III, which aims to provide capital that will finance high-impact and large-scale private sector projects in clean technologies.
The Facility for Energy Inclusion is expected to contribute to the installation of around 600 megawatts of renewable energy projects across Africa. This project will stop over 30 million tons of carbon dioxide equivalent of greenhouse gas emissions for 20 years while yielding positive gender and social outcomes.
According to the AfDB, the (FEI) is a $500 million financing platform that aims to scale financial support for innovative energy access solutions.
They revealed that FEI on grid’s targeted $400 million funds, will also aid enhanced energy access. This will be achieved through small-scale renewable energy generation and mini-grids across Africa. Whilst the Off-Grid Energy Access Fund, that is targeted at $100 million, will aid off-grid energy distribution companies, whilst boosting their long-term capacity towards accessing capital markets at scale.
The Director of Climate Change and Green Growth, AfDB, Mr. Anthony Nyong, said “access to affordable and reliable energy has huge benefits at various levels of any society. Most of the 600 million people estimated to lack access to modern energy services in sub-Saharan Africa are also among the most vulnerable to the disastrous consequences of climate change.”
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