The African Renewable Energy Fund, a Berkeley Energy managed fund that will focus on small hydro, wind, solar, geothermal, stranded gas and biomass projects across sub-Saharan Africa, held its final close early last week, successfully hitting its $200 million hard cap with commitments from European Investment Bank, the Global Energy Efficiency and Renewable Energy Fund and other investors.
The fund, which held its first close at $100 million in March 2014, is headquartered in Nairobi and has already made investments in a number of grid-connected development stage renewable energy projects. The fund targets IPPs generating between 5MW and 50MW with between $10 million and $30 million of capital, and is able to source additional funding from other co-investors for larger projects.
African Development Bank and its Sustainable Energy Fund for Africa (SEFA) are the funds lead sponsors, having contributed and mobilized some $65 million in capital initially. Along with European Investment Bank and the Global Energy Efficiency and Renewable Energy Fund, the final investor group also includes West African Development Bank, ECOWAS Bank for Investment and Development, FMO, Calvert Investments, CDC Group, the Belgian Investment Company for Developing Countries, OeEB – the Development Bank of Austria, Wallace Global Fund, Sonen Capital, Berkeley Energy, African Biofuel and Renewable Energy Company.