Camco at COP27 events
The evolving investment landscape for renewable energy in Africa: Challenges and opportunities based on experience on the ground
Monday 14 November | 17:30 - 19:00
IETA BusinessHUB (Area C, Zone 5, Pavilion 123 - Blue Zone)
In 2015, the Paris Agreement set out the importance of mobilising private sector finance to support the implementation of an ambitious climate agenda, with the energy sector being at the core of climate action. In Sub-Saharan Africa, given the scale of just energy transition, new and innovate financing solutions for renewables are needed.
From the large-scale deployment of solar home systems to mini- and metro-grids, the challenge of financing renewable energy initiatives across the continent requires adaptable solutions, beyond the typical project finance or public-private partnership (PPP) models that have been used and replicated for decades.
There is no one-size-fits all solution when it comes to financial structuring to counter demand uncertainties and construction of green decentralised power assets, which means that constant innovation is required for the decentralised renewable energy sector. Luckily, this makes for an exciting moment for the renewable investment community, as the way in which investment risks are assessed must adapt to cater for these modern business models; financing structures and instruments need to be adapted and new instruments must be created.
Since 2016, Camco has – as the investment manager of the Renewable Energy Performance Platform (REPP) – been working to reduce greenhouse gas emissions by providing flexible capital to smaller scale project developers and companies and demonstrating operational feasibility to other investors and lenders. REPP’s investments highlight the importance of financial innovation and thinking outside the box – whether by implementing the first project finance deal for mini-grids, providing an adjustable interest loan for the first wind project in the country, or financing the solar hybridisation of distributed HFO plants. The strong pipeline for the second phase of REPP indicates that the need for such flexible and innovative financing for distributed renewables remains strong on the African continent.
The changing financing landscape requires adaptive regulatory frameworks and viability gap funding programmes with effective implementation, as well as a strong coordination between the public and the private sectors to ensure successful scale up of the climate finance including result-based finance needed to achieve the national climate goals.
Panellists will include investment and government professionals with extensive expertise, deep understanding and on-the-ground experience in the field who will discuss the current challenges facing the sector, but also the compelling opportunities that it has to offer.
Ieva Indriunaite, Policy and Partnerships Manager, Camco (moderator)
Benjamin Hugues, Investment Director and REPP Lead, Camco
Eric Usher, Head, UNEP Finance Initiative
Aaron Cheng, CEO, PowerGen
Arnold Simwaba, Director - Energy, Ministry of Energy of Zambia
Dewi Dylander, Head of Sustainable Investments, PKA