The African Renewable Energy Fund (AREF) announced that it raised $100 million to support small- to medium-scale IPPs. The fund is targeting a final close of $200 million within the next year to invest in grid-connected development stage renewable energy projects (small hydro, wind, geothermal, solar, biomass, and waste-to-energy).
The AREF will target IPPs with an ideal size of between 5 and 50 MW and a commitment per project of between $10 million and $30 million, with the capacity to source further funding from co-investors where necessary for a larger investment.
“Over the past decade, the AfDB has established itself as a prime catalyst for renewable energy investment on the continent and is currently hosting the Africa Hub for the Sustainable Energy for All (SE4All) initiative. As Africa’s largest infrastructure finance partner, we understand the value of supporting both large-scale and small-scale projects as part of our strategy for Africa to promote inclusive and sustainable growth,” said Gabriel Negatu, AfDB Regional Director for the East Africa Regional Resource Center.
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