The French Development Agency (AFD) and its subsidiary for the private sector Proparco have launched the African Renewable Energy Scale Up Facility (ARE Scale Up). ARE Scale Up’s objective is to stimulate private investment in the renewable energy sub-sector in Africa.
Both the networked and non-networked solutions will be taken into account by the project, which received €24 million from the EU. The creation of this facility is an extension by the AFD Group of the ElectriFI initiative of the EU which pursues the same objective with a focus on the populations of rural areas and areas difficult to access.
Through this, the agency will support innovative upstream projects in the field of electrification, with particular attention to solar energy. This support will take the form of a technical assistance facility, with a budget of €12 million and a guarantee facility with an equivalent amount.
Technical assistance will strengthen the legal and institutional environment of beneficiary countries and prepare project funding.
The guarantee facility will be used for equity investments in private companies that specialize in off-grid technologies. The medium-term objective of the initiative is to enable access to the energy of one million African households over the next five years and a 50 MW increase in the continent's energy capacity from renewable energy sources.