Date of effectiveness: 2014
The African Renewable Energy Fund (AREF), a dedicated renewable energy fund focused on sub-Saharan Africa closed with USD100 million of committed capital to support small to medium scale independent power producers (IPPs).
The fund which will be headquartered in Nairobi, is targeting a final close of USD200 million within the next 12 months to be invested in grid-connected development stage renewable energy projects including small hydro, wind, geothermal, solar, biomass and waste gas.
Initially promoted in a joint initiative by the African Biofuel and Renewable Energy Company (ABREC) and the African Development Bank (AfDB), AREF will be managed by Berkeley Energy Africa Limited (Berkeley Energy), a fund manager focused on developing and investing in renewable energy projects in emerging markets. The fund will target IPPs with an ideal size of between 5MW-50MW and a commitment per project of between USD10 million – USD30 million with the capacity to source further funding from co-investors where necessary for a larger investment.