Published on : Jan 15, 2015
The ACEF initiative - US-Africa Clean Energy Finance that was launched in 2012 with an initial investment of US$20 million has recently announced the commitment of 100 percent of the initial project funds.
The ACEF program model is designed to aid the promising clean energy projects to formulate growth and development into viable candidates for funding small amounts of income of early-stage for necessary inputs. These could include feasibility and technical studies, said ACEF.
The initiation program has been designed to support all the nascent-stage projects in accelerating private-sector investment in the industry of energy, particularly the renewable energy sector in the Sub-Saharan Africa. With the secretary of the state John Kerry’s announcement in August, the US State Department aims to invest in the Sub-Saharan Africa with an additional amount worth US$10 million.
ACEF acts as a catalyst to enhance these projects and cater to the private sector in terms of follow-up investment in the energy industry.
Since the launch of the program, funds have been committed to about 30 renewable energy projects in ten different countries of Africa. The project covers various activities designed to attend to Africa’s overall energy challenges, including small, as well as large scale projects. The program is also designed to connect to central power grids and other off-grid communities in the rural areas.
ACEF’s initial funding of US$20 million has the capacity to govern over more than 400 megawatts (MW) of the renewable power in Africa. This helps in mobilizing more than US$1.5 billion in the total project capital investment.
The ACEF program is an excellent illustration of learning to use limited public resources to leverage the necessities in the private financing segment and to boost the low-carbon growth in the emerging countries - as a major step in meeting the basic needs of the climate change, said the US special envoy at the US State Department.