The European Bank for Reconstruction and Development (EBRD) is providing a €31 million loan for a 30MW solar project in the Kyzylorda region of Southern Kazakhstan, sponsored by Total EREN and Access Infra Central Asia.
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 World Bank announced last week that its Board of Executive Directors approved the Second Energy Sector Project, which will help strengthen Mongolia’s electric grid and develop a 10MW installation within the country.
Whilst African solar is still firmly an emerging market, investors have confirmed that issues remain with development finance, insofar as it is holding back the market from truly taking off. Whilst development finance institutions (DFIs) are a crucial part of allowing the market to find its feet, the continent’s economic infrastructure needs to move beyond the realm of development finance for commercial financiers to be enticed.
A panel of development finance institutions and project developers at the annual Africa Energy Forum on Friday discussed how they are shaping the continent’s emerging energy sector; in taking on the risk that commercial capital typically will not.