OPIC Surpasses Power Africa Financing Milestone, Sparking Progress for New Energy Generation and Access
November 9, 2015
(OPIC)
U.S. Development Finance Institution commits over $1.6 billion to Presidential
initiative, surpassing initial pledge
OPIC-supported projects will create nearly 1,500 new megawatts from both thermal
and renewable energy, large grid-connected facilities and innovative off-grid
access efforts
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S.
Government’s Development Finance Institution, today announced its successful
achievement of the initial financing and insurance goals pledged to support
President Obama’s Power Africa initiative.
Power Africa, launched in June 2013, is a partnership among more than 100 public
and private sector partners to bring new power access to the more than 600
million Sub-Saharan Africans that currently live without electricity. As a key
part of this initiative, OPIC pledged to provide $1.5 billion in financing and
insurance to private sector energy developers to create new energy solutions
across sub-Saharan Africa.
In September of 2015, OPIC surpassed this milestone with the approval of several
new projects, and now supports a diverse portfolio of private sector-led
development that will create almost 1,500 new megawatts (MWs) of on-grid and
off-grid power across Sub-Saharan Africa in support of the Presidential
initiative.
“I am so pleased that OPIC has been able to so quickly and efficiently respond
to President Obama’s ambitious Power Africa goals and to the energy needs of
people throughout sub-Saharan Africa,” said Elizabeth Littlefield, OPIC’s
President and CEO. “Since Power Africa was announced, OPIC’s catalytic debt
finance and political risk insurance has resulted in Agency commitments totaling
nearly 1,500 new megawatts of electricity using an all-of-the above approach to
generation and access. This is a major achievement not only for OPIC and Power
Africa, but for the millions of Africans benefitting from this initiative. They
will now be able to access advantages in education, healthcare, business growth
and quality of life that come with increased energy access. In the years ahead,
we look forward to further increasing our relationships with U.S. businesses
investing in Africa’s promising energy future.”
“OPIC is changing the investment landscape in Africa’s energy sector, making
transformative power deals possible,” said Power Africa Coordinator Andrew
Herscowitz.
Projects included in OPIC’s African energy portfolio span the range of
responsive, unique approaches that are needed to address Africa’s electricity
challenges. Large grid-connected projects take advantage of Africa’s diverse and
abundant resources.
For example, in West Africa, OPIC-supported multi-fuel power plants that can run
on natural gas or oil include the 204 MW Amandi facility in Ghana and the 53 MW
Cap des Biches facility in Senegal. And to tap into East Africa’s abundant wind
potential, OPIC financing will help the Kipeto and Lake Turkana wind power
facilities deliver more than 400 MWs of new power to the Kenyan national grid.
Recognizing that the African power solution is greater than just grid delivery,
OPIC support will also provide new access to tens of thousands of people living
away from large power infrastructures with financing to off-grid home solar kits
from Nova-Lumos in Nigeria.
OPIC’s current portfolio of support to power in Sub-Saharan Africa now totals
over $1.6 billion in commitments for financing, insurance, and support for
development costs. This achievement comes years ahead of schedule for OPIC, and
the agency is already on its way to fulfilling a pledge for another $1 billion
of financing and insurance in support of Power Africa.
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