$100 million raised for renewables in Africa

The African Renewable Energy Fund (AREF) announced that it has raised $100 million to support the development of grid-connected renewable energy projects in sub-Saharan Africa. The fund, which will be managed by Mauritius-based Berkeley Energy, will provide $10 million to $30 million per project to independent power producers (IPPs) that are developing small and mid-scale, 5 to 50 MW solar, wind, geothermal, biomass, waste gas, and small hydroelectric power projects. AREF is hoping to raise an additional $100 million for the fund within the next 12 months. “The $200 million is not the end of it,” said Gabriel Negatu, regional director for the East Africa Resource Center of the African Development Bank (AfDB), in announcing the new fund. “The whole idea is that this is supposed to catalyze and crowd in other investors, so I can assure you that in a few years’ time, we may be looking at maybe $1 billion or half a billion dollars.”