June 26 (Renewables Now) - The African Development Bank (AfDB) said Monday its financing platform for small-scale renewables received a EUR-40-million (USD 45.5m) investment from the European Commission (EC).
The platform, dubbed Facility for Energy Inclusion (FEI), is a USD-500-million (EUR 439.8m) campaign led by the AfDB and aimed at providing financial support for innovative energy access solutions.
The pot will be split between the USD-400-million FEI On-grid fund, which will support the development of small-scale renewable power and mini-grid projects across Africa, and the USD-100-million Off-Grid Energy Access Fund (OGEF). The OGEF will support off-grid energy distribution companies and allow them to access capital markets at scale.
According to Joao Cunha, the AfDB manager for renewable energy initiatives, FEI was designed to offer debt instruments, including in local currency, to companies providing affordable, clean and sustainable access to underserved communities in Sub-Saharan Africa.
In 2015, the AfDB launched the Light up and Power Africa initiative with a goal to achieve universal energy access across the continent by 2025. The bank intends to prioritise renewable energy development on this path, while also finance state-of-the-art fossil fuel technologies to minimise emissions.
(EUR 1.0 = USD 1.14)