The African Development Bank (AfDB) committed a $25 million equity financing to the ARCH Africa Renewable Power Fund (ARPF) for the development of renewable energies in sub-Saharan Africa.
The funds will be used specifically for the installation of 533 MW of renewable energy plants with an individual capacity of between 10 and 15 MW. These plants will be located in off the grid areas that the national grid is unable to adequately service power consumers. The plants will have to rely on already proven technologies such as photovoltaics or mini-grids and may or may not direct their production into the national grid.
The AfDB hopes that its contribution to the fund will encourage further investments by others to raise another $60-$75 million for the project.