A private equity fund to finance renewable energy projects in sub-Saharan Africa has been set up by the African Development Bank and the African Biofuel and Renewable Energy Company.
It will have its headquarters in Kenya with Berkely Energy Africa Limited of Mauritius as its manager.
Former KenGen boss Eddy Njoroge named non-executive director of the fund.
INDEPENDENT POWER PRODUCERS
AfDB’s regional director for Eastern Africa Resource Centre Gabriel Negatu says the fund has a committed capital of $100 million (Sh8.6 billion) and is targeting to double this by the end of the year.
“The fund will target independent power producers (IPPs) with an ideal size of between 5-50 megawatts and a commitment per project of between $10-$30 million with the capacity to source further funding from co-investors where necessary for a larger investment,” Mr Negatu said.
AfDB is the fund’s lead sponsor with a $65 million (Sh5.5 billion) commitment and will take a controlling interest in power projects it invests in.
This comes as government rolls out a plan it launched in September to raise installed electricity output by 5,000 megawatts in 40 months.
The plan will see Kenya source input from private investors and joint ventures between government and the private sector.