AfDB Obtains €40 Million Investment from EU to Surge Renewables in Africa

The African Development Bank (AfDB) has announcedthat it has received a €40 million outlay from the European Commission (EU) for the Facility for Energy Inclusion (FEI), a new platform for financing small-scale renewables in Africa.

The declaration was made at the sideline event held during the Africa Energy Forum, which took place in Lisbon, Portugal. The Bank, the European Commission, in partnership with Lion’s Head Global Partners and Fieldstone and the Lusophone Renewable Energy Association, will work on the platform.

FEI is a $500 million financing platform spearheaded by AfDB to catalyze financial support for innovative energy access solutions. FEI On-grid, a targeted $400 million fund, supports improved energy access through the development of small-scale renewable energy generation and mini-grids across Africa, while the Off-Grid Energy Access Fund (OGEF), a besieged $100 million fund, supports off grid energy distribution companies and boosts their long-term capacity to access capital markets at scale.

Joao Cunha, Manager for Renewable Energy Initiatives at the AfDB said FEI had been developed to offer debt instruments, including in local currency, to companies providing affordable, clean and sustainable access to underserved communities in the Sub-Saharan region. “Through FEI, we aim to increase co-financing and private sector investment in innovative on-grid and off-grid clean energy access solutions, and consequently move faster on our “Light Up and Power Africa” priority to achieve universal energy access in Africa by 2025,” said Cunha.