Camco, a leading climate and impact fund manager, has announced the successful first close of $107 million for its Renewable Energy Performance Platform 2 (REPP 2) debt fund. Additionally, an extra $78 million has been pledged, contingent upon meeting certain conditions.
The primary goal of this fund is to accelerate the decarbonization of Africa’s energy grid and to drive significant advancements in renewable energy development across the continent. The initiative has garnered support from several key investors, including the Green Climate Fund (GCF), Norfund, FMO, BIO, Ceniarth, and the UK-funded Renewable Energy Performance Platform (REPP).
REPP 2 is designed as a blended finance vehicle, aiming to attract both public and private investments into Sub-Saharan Africa’s distributed and small-scale renewable energy market. This innovative approach not only supports decarbonization efforts but also addresses the substantial $22 billion annual funding gap required to achieve Sustainable Development Goal 7 (SDG7), which focuses on providing universal access to reliable electricity.
Ben Hugues, REPP 2 Director at Camco, emphasized the significance of this initiative:
This is Africa’s moment to redefine its energy future. Investing in the businesses shaping a decentralized, renewable, and reliable African energy grid is paramount. The involvement of world-class investors underscores the importance of blended finance in scaling innovation and delivering both financial and climate impacts.
Throughout its lifetime, REPP 2 is expected to add 330 MW of renewable energy capacity and mitigate over 12.7 million tons of carbon dioxide equivalent emissions. The fund aims to provide clean energy access to more than 7.7 million people while enhancing the resilience of approximately one million beneficiaries.
The fund is further bolstered by a technical assistance facility, funded by the Norwegian Agency for Development Cooperation (Norad), which aims to overcome both financial and non-financial barriers that impede project development. This support is anticipated to stimulate market growth and expedite investments in Africa’s renewable energy sector. REPP 2 represents a critical milestone in Africa’s energy transition, setting the stage for sustainable economic growth and impactful climate solutions across the continent.
