The Green Climate Fund (GCF) has endorsed the allocation of $170.9 million in financing for the African Development Bank’s Leveraging Energy Access Finance Framework (LEAF) program.
As part of an overall $900 million program budget, this recent Green Climate Fund’s financing will help to scale the roll-out of mini-grids, solar home systems, and commercial and industrial solar solutions in the program countries.
The LEAF program is designed to unlock commercial and local-currency financing for decentralized renewable energy (DRE) projects in Nigeria, Ghana, Guinea, Kenya, Ethiopia, and Tunisia -six program countries in total.
Commenting on the partnership with AfDB, Tony Clamp, acting Director of GCF’s Private Sector Facility, said, “GCF is delighted to partner with the African Development Bank to support this timely and critical program for decentralized renewable energy across these six African countries.
Green Climate Fund’s commitment will help unlock much-needed commercial capital and local currency financing to help overcome financing barriers exacerbated by Covid-19.”
Under LEAF, Africa’s abundant solar resources will be harnessed to get renewable energy into the hands of 6 million people and businesses, and also prevent 28.8 million tonnes in CO2 emissions over the lifetime of the systems.
By deploying credit enhancement instruments and technical assistance, LEAF will strengthen capital markets and boost the financial and technical capacities of crowd-in private sector investors and local financial institutions.
To a large extent, this will enable them to finance businesses in the fast-growing DRE market segment comprising solar home systems, green mini-grids, and solar solutions for commercial and industrial sectors.
In addition, the program will also provide requisite support to strengthen the enabling environment of this market segment.
The African Development Bank’s Vice President for Power, Energy, Climate and Green Growth, Dr. Kevin Kariuki, also said,
“GCF’s approval of LEAF is a significant boost for the African Development Bank’s twin ambitions of accelerating electricity access and supporting the transition to clean energy on the continent using decentralized renewable energy solutions, and moreover facilitated through local financing.”