The facility is designed to assist independent power producers (IPP) developing renewable-energy projects in Africa to reach the liquidity they need in case their off-taker delays payment. Image: Presidencia de la Republica Mexicana / Flickr
The German Development Bank (KfW) and the African Trade Insurance Agency (ATI) have set up a new credit facility instrument built to support renewable energy projects in sub-Saharan Africa that targets small and mid-scale renewable energy projects (up to 50MW).
The German Federal Ministry of Economic Cooperation and Development (BMZ), through the KfW, will provide funding up to US$38.8 million for the facility – which looks to allow small-and mid-scale renewable energy projects in Africa to reach financial close by meeting liquidity requirements that lenders frequently ask for in order to fund these projects.
Günther Nooke, personal representative of the German Chancellor for Africa, BMZ, said: “The Regional Liquidity Support Facility will address a key challenge in renewable energy project finance and de-risk private sector investments. We are pleased to provide the funding to this innovative instrument underlining Germany’s commitment to the objectives of the African Renewable Energy Initiative (AREI).”
The facility is designed to assist independent power producers (IPP) developing renewable-energy projects in Africa to reach the liquidity they need in case their off-taker delays payment.
The facility will provide immediate cash collateral supported by guarantees to a commercial bank that will in turn open a standby letter of credit to the benefit of the IPP. The amount provided will enable the IPP to operate and service the debt for up to six months.
May 26 - May 27, 2021
Looking at the drivers and dynamics of utility scale solar in the UK & Ireland over the next five years. This event will consider the immediate challenges as we enter the build phase in both these markets where we could see as much as 4GW deployed in 2021 alone! What developments will continue the growth of 100MW+ sites and what impact will government policy have on the rate of deployment in both markets?Join leading developers and manufacturers shaping the direction of one of Europe’s most active markets and hear from speakers with a history of influencing innovation and change.
Feb 03 - Feb 04, 2021
The business of solar is changing, as the industry scales up, technology, IT and new players to the market will add complexity. This sparks a host of opportunities such as co-location of solar and storage and the rise of unsubsidised solar projects as well as challenges which will question the very business model of European solar asset owners. Solar Finance & Investment Europe is the meeting place for institutional investors, sovereign wealth funds, solar, wind and storage funds and large energy buyers to do business.