The African Development Bank (AfDB) has announced a 40 million euro investment from the European Commission for the Facility for Energy Inclusion (FEI), a new platform for financing small-scale renewables in Africa.
The announcement was made to energy sector stakeholders at a sideline event held during the Africa Energy Forum, which took place in Lisbon, Portugal from 11-14 June.
The Bank, the European Commission, in partnership with Lion’s Head Global Partners and Fieldstone and the Lusophone Renewable Energy Association, presented the Facility to participants at the Forum.
FEI is a $500 million financing platform spearheaded by the African Development Bank to catalyze financial support for innovative energy access solutions.
FEI On-grid, a targeted USD 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 targeted USD 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 African Development Bank 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.
The event was attended by the renewable energy investor community, including representatives from various Development Finance Institutions (DFIs), international and African commercial banks, project developers and sponsors.
During the event, the FEI fund managers guided project sponsors and developers in attendance through project selection criteria, and financing terms of the specific FEI windows.