(Ecofin Agency) – REPP 2 aims to support the addition of 330 MW of new capacity to the African electricity network and the elimination of more than 12.7 million tCO2e of emissions. Enough to allow more than 7.7 million people to access clean energy according to Camco.
Climate and impact fund manager Camco announced this Monday, December 9, that it had reached the first close of USD 107 million for its new REPP 2 debt fund intended to invest in the African electricity network, with an additional conditional commitment of 78 million USD. The fund is structured as a blended finance vehicle to attract public and private investors to invest in the distributed and small-scale renewable energy market in sub-Saharan Africa.
The type of financing obtained is not indicated by Camco, but this closing was possible with the support of the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth and the performance platform Renewable Energy Project (REPP), funded by UK International Development. This marks an important milestone in the fund’s commitment to leading the transition to a net zero emissions future in emerging markets, particularly Africa.
« Africa’s energy transition is underway. It is essential to invest in companies that are building the African energy network of the future, decentralized, renewable and reliable. This requires a significant and urgent increase in funding to enable innovative businesses to grow and generate both attractive returns and significant climate impact. » commented Ben Hugues, director of REPP 2 at Camco.
-Sub-Saharan Africa continues to face power supply challenges, including insufficient generation capacity, low connectivity and high costs that hamper development. Investments in the sector are far from the levels required to unlock the region’s potential, particularly in renewables, the development of which could not only improve electrification, but also support efforts to combat climate change.
Abdullah Diop
Senegal
