OPIC's Africa Clean Energy Financing Facility Supported 27 Early Stage Projects Since 2012
December 11, 2017
(OPIC)
The U.S. Africa Clean Energy Finance Initiative
(ACEF), a five-year collaboration between OPIC,
the U.S. Trade and Development Agency and the
U.S. Department of State, has supported 27
early-stage renewable energy projects totaling
470 MW in 11 African countries to expand access
to electricity, since it was launched in 2012.
Of these, 17 have reached or are nearing
commercial operation, underscoring the
program’s success in helping early stage
power projects launch.
The innovative ACEF program is winding down
this year after having provided critical early
stage support to a range of projects, from
Rwanda’s first utility-scale solar power
plant to a provider of solar lighting in
Nigeria. By helping so many early-stage
projects get off the ground, the program also
helped many promising businesses mature to the
point they were eligible for project finance
from OPIC and other sources. OPIC has committed
a total of $369 million in financing and
insurance to graduates of the ACEF program and
these projects have raised an additional $443
million in capital from other sources,
ultimately resulting in $30 mobilized for every
$1 from ACEF. For example, SunFunder, a solar
financing company for Sub-Saharan Africa,
assembled a $50 million Beyond the Grid fund
that has already delivered energy to 2.5
million people.
“Through the ACEF program, OPIC has been able
to support several highly innovative projects
that addressed some of the toughest challenges
of expanding access to electricity in Africa,
such as reaching remote populations,” said
Lynn Tabernacki, OPIC Deputy Vice President,
SME Finance and Head of Global Energy. “In
the process of learning the challenges faced by
early stage companies, particularly in the
off-grid sector, we began to understand the
long term need for these projects to succeed
and we were able to craft financial structures
that fit their needs.”
The ACEF program was launched to help
early-stage businesses address some of the
challenges such as feasibility studies and
environmental impact assessments that can be
costly and time consuming by providing
promising projects early stage support.
By addressing the specific needs of
early-stages businesses, the program served as
a key pillar in the U.S. Power Africa
Initiative aimed at bringing electricity to
many of the estimated 600 million people in
Sub-Saharan Africa who live without regular
access.
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