The Board of Directors of the Green Climate Fund (GCF) (www.GreenClimate.Fund) has approved $170.9 million in funding for the African Development Bank’s Leveraging Energy Access Finance Framework (LEAF) programme (www.AfDB.org). LEAF aims to unlock commercial and local currency financing for decentralised renewable energy (DRE) projects in six programme countries: Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.
The Green Climate Fund funding is part of a global budget of $900 million to scale up the deployment of mini-grids, solar home systems and commercial and industrial solar solutions in the programme countries.
Tony Clamp, Acting Director of the GCF’s Private Sector Facility, said: “The GCF is delighted to partner with the African Development Bank to support this timely and essential programme for decentralised renewable energy in these six African countries. The Green Climate Fund’s commitment will help unlock much-needed commercial capital and local currency financing to help overcome the financing barriers exacerbated by Covid-19.”
Under LEAF, Africa’s abundant solar resources will be harnessed to provide renewable energy to 6 million people and businesses, and will also avoid 28.8 million tonnes of CO2 emissions over the life of the systems.
By deploying credit enhancement instruments and technical assistance, LEAF will strengthen capital markets and attract private sector investors, including local financial institutions, thereby improving their financial and technical capacity to finance ventures in the fast-growing DRE market segment, including solar home systems, green mini-grids and solar solutions for the commercial and industrial sectors. The programme will also provide the necessary support to strengthen the enabling environment and increase private sector investment in this market segment.
“The approval of LEAF by the GCF is a significant boost for the African Development Bank’s dual ambition of accelerating access to electricity and supporting the continent’s transition to clean energy through decentralised renewable energy solutions, facilitated by local financing,” said Dr Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate and Green Growth.