About
Renewable energy is essential to meet Africa’s growing energy demand and to ensure access to electricity for all. Meeting these challenges requires supporting public institutions, and mobilizing private actors.
Co-financed by the European Commission and the AFD Group, the African Renewable Energy Scale-up (ARE Scale-up) facility promotes renewable energy and access to electricity on the African continent.
The facility has been designed to rally both public and private stakeholders, as it is composed of:
- A Technical Assistance component, managed by AFD to strengthen regulatory and institutional frameworks in the countries concerned and to prepare financing of private or public sector renewable energy initiatives in Africa.
- A Guarantee Facility managed by Proparco to support investment in off-grid, mini-grid and decentralised power industry players.
Assistance Criteria
Over the next 5 years, Proparco will support between 5 and 10 African businesses with innovative, high-potential projects. While priority will be given to solar energy projects, other technologies (biomass, mini-hydro, etc.) will also be considered.
Eligible companies should:
- Have a proven business model (with strong potential for breakeven within 3 years), an experienced management team, anchor investors and be active in Africa;
- Implement projects which provide access to electricity or produce decentralized power generation using small scale renewable energy;
- be in an active commercial phase (ability to scale up beyond the pilot phase, proven technology, and significant customer base
Countries
Support
ARE Scale-up provides two types of support:
- Technical assistance to strengthen the regulatory and institutional environment in African countries and lay the groundwork for financing public and private renewable energy projects
- Partial guarantees for PROPARCO‘s minority equity investments in the off-grid, mini-grid and decentralised energy sector to prepare these companies to access business investors and large scale debt funding