The Renewable Energy Performance Platform’s REPP 2 aims to secure $230 million directly and collaborate with other financiers to facilitate the development of small-scale power projects, mini-grids, and residential solar systems in some of Africa’s economically challenged nations. Initial funding includes a $50 million allocation from the Green Climate Fund and a matching amount from the UK government.
representing Camco, the climate and impact fund manager overseeing the initiative, mentioned plans to secure funding from private sources. With an extensive pipeline exceeding a billion dollars in advanced deals, REPP and Camco aspire to address the electricity deficit in Africa, where 43% of the population, equivalent to 600 million people, lacks access to power, as reported by the International Energy Agency. Anticipating a doubling of energy demand on the continent by 2040, Hugues attributes this to population growth, emphasizing the need for substantial infrastructure development.
REPP 2 intends to allocate 50% of its funds to the creation of mini and isolated grids, 40% to solar, wind, and hydro power plants with a capacity of less than 25 megawatts, and the remaining portion for residential solar systems. The fund, designed to span 20 years, aims to provide loans at more than 200 basis points below the rate applied to commercial debt.
Established in 2015, REPP raised $120 million for its initial fund and mobilized nearly $500 million in co-financing. The investments made will have an exit strategy within five to seven years, according to Hugues.
Source: Bloomberg