In a significant milestone for clean energy investments in Sub-Saharan Africa, UK-based investment manager Camco has announced the first close of its second clean energy debt fund, the Renewable Energy Performance Platform (REPP2), at USD 185 million. This 20-year climate-focused fund underscores Camco’s commitment to driving sustainable energy solutions across the region. 🌱⚡
Key Highlights of REPP2
The REPP2 fund is designed to provide financial support to small and medium-sized renewable energy projects through a mix of senior debt, subordinated debt, and hybrid equity. It focuses on impactful renewable energy technologies, including:
- Off- and on-grid solar projects (up to 25 MW)
- Hydropower projects (up to 25 MW)
- Wind projects (up to 50 MW)
- Energy storage assets 🔋🌞
The fund aims to invest USD 786 million, including co-financing, into 35 projects with a cumulative capacity of 330 MW. By targeting underserved energy markets, REPP2 contributes to economic development while supporting global climate goals.
Investor Commitments and Structure
The USD 185 million raised at first close comprises:
- USD 50 million from the Green Climate Fund 🌍
- USD 50 million from Dutch development bank FMO 🇳🇱
- Contributions from Norfund (Norway), Ceniarth (a family office), and the Belgian Investment Company for Developing Countries 🇧🇪
Of this total, USD 107 million is guaranteed capital, while USD 78 million is subject to conditions. Camco targets a final close of USD 250 million by the end of 2025, further expanding its impact.
Pipeline Projects
The fund has already identified three promising projects in its pipeline:
- East African Hydro IPP Portfolio
- Southern African Solar IPP Portfolio
- Western African Mini-Grid Portfolio
These initiatives span diverse geographies and technologies, reinforcing REPP2’s role as a catalyst for renewable energy in Sub-Saharan Africa. 🌐🔋
Strategic Impact
REPP2 reflects Camco’s dual focus on climate impact and economic empowerment:
- Energy Access: Financing decentralized mini-grids enhances electricity access for underserved communities.
- Carbon Reduction: Supporting renewable energy projects contributes to significant greenhouse gas emission reductions.
- Local Development: Investments stimulate local economies, creating jobs and fostering sustainability.
Challenges and Opportunities
Challenges:
- Navigating regulatory environments across Sub-Saharan African countries.
- Ensuring long-term project viability and financial returns.
- Mitigating risks associated with currency fluctuations and political instability.
Opportunities:
- Accelerating the energy transition in a region with immense renewable potential.
- Unlocking co-financing opportunities to amplify impact.
- Strengthening energy security and resilience through diversified clean energy projects.
Conclusion
The first close of Camco’s REPP2 fund marks a pivotal step in Sub-Saharan Africa’s clean energy journey. With substantial backing from global development institutions and a robust project pipeline, the fund is well-positioned to drive impactful energy solutions. As the fund progresses toward its final close, it promises to deliver transformative benefits, bridging the energy gap while supporting climate goals.
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