EC releases Euro40m for small-scale energy projects in Africa
Written by Millennium on June 27, 2019
BUUMBA CHIMBULU writes
The European Commission(EC) for the Facility for Energy Inclusion (FEI) has made available EUR40 million to finance small-scale renewables in Africa.
FEI is a new platform for financing small-scale renewables in Africa.
It is a US$500 million financing platform spearheaded by the African Development Bank (AfDB) to catalyse financial support for innovative energy access solutions.
Commenting on the recent financing of EUR40 million investment, AfDB Manager for Renewable Energy Initiatives Joao Cunha, said the FEI had been developed to offer debt instruments.
Mr Cunha said the instruments included 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.
And Hugo Van Tilborg, Head of Infrastructure, and African Development Bank Liaison at the EU said the investment would stimulate growth of the small-scale renewables in Africa.
“FEI is a great example of how the EU has been developing innovative financing initiatives together with financial partners such as the African Development Bank, to stimulate and de-risk private sector investments without which we won’t be able to address the growing energy demands and provide access to sustainable energy in sub-Saharan Africa,” he said.