Private Capital’s role in achieving COP 2030 Breakthroughs in Africa (ENERGY)
COP 2030 Breakthroughs pinpoint specific tipping points that must be achieved by 2030 to keep on track with the Pathways’ vision.
This edition explores contributions from AVCA Members in achieving these breakthroughs in ENERGY, whilst followng editions in this series include breakthroughs in:
ENERGY: CLEAN POWER
2030 TARGET: Solar and wind power make up at least 40%, and all renewables make up at least 60% of global electricity generation by 2030.
2023: Swedfund invests USD$1.9mn to increase access to reliable and clean energy
- Swedfund invested in the Mirova Gigaton Fund to offer debt financing to projects in developing countries, through a wide range of important, complementary solar energy solutions outside the regular grid, so-called off-grid solutions.
“Solar energy solutions are crucial to achieving the 2030 goal of universal access to affordable, reliable and sustainable energy,” says Swedfund’s CEO Maria Håkansson.
2023: Oikocredit and Lion’s Head partner to back Solarise Africa
- Investing US$7mn in Solarise Africa, alongside the Facility for Energy Inclusion (FEI) and AfricaGoGreen (AGG), the partnership will support Solarise Africa’s growing provision of affordable commercial and industrial (C&I) solar installations in Africa.
- Solarise Africa specialise in decentralised energy solutions ranging from 50kW to 3MW, and we are fast expanding. With this investment, they will offer more solar installations and energy efficiency solutions for small and medium enterprises and other businesses in multiple African countries.
2023: FMO invests US$20mn in Starsight Premier Energy
- In Kenya, industrial and commercial enterprises pay high grid tariffs ranging from USD 13–20 cents per kilowatt hour of electricity. Thanks to its innovative lease to own model, SPEF offers commercial and industrial clients in East Africa the opportunity to lease a solar photovoltaic system for 12–15 years after which the system is transferred to the client. This allows the client to generate their own electricity for about USD 6–8 cents per kilowatt hour.
FMO, via the Building Prospects, aims to strengthen local economies and create jobs in the private sector. Robert Voskuilen, Manager Energy says: “We are proud to partner with SPEF to advance sustainable energy systems in East Africa, as well as social and economic progress.”
2022: Swedfund invests USD$1.9mn to increase access to reliable and clean energy
- In December 2022, Swedfund announced their investment in d.light; a company providing affordable off-grid solar electricity to people living without access to reliable and clean energy in Africa and India — supporting the company’s expansion.
- Since Swedfund’s investment in 2018, d.light has expanded from Kenya and India to geographies such as Uganda, Tanzania, and Nigeria. In addition to off-grid solar home systems, the company offers products such as radios and TVs, smartphones, and clean cookstoves, that contribute to d.light’s mission of transforming lives.
- By 2022, d.light has provided energy access to 137 million people via solar products.
ENERGY: GREEN HYDROGEN
2030 TARGET: Up to 850 GW green hydrogen capacity is deployed by 2030 to align with 1.5C pathways. This is equivalent to up to 80 Mt of green hydrogen produced by 2030”
2023: Africa50 joins forces to accelerate the clean energy transition across Africa
- Masdar partnered with Africa50, the pan-African infrastructure investment platform to identify, fast-track and scale clean energy projects across the continent. The companies are collaborating to catalyse sustainable development of the clean energy sector in Africa, targeting green hydrogen production of 1 million tonnes per annum by 2030.
- Masdar has committed a total of US$10bn in clean energy finance — of which US$2bn will be generated from equity — to target the delivery of 10GW of clean energy capacity in Africa by 2030.
“Partnerships are key to our goal of scaling up and accelerating the delivery of bankable and sustainable infrastructure across Africa. We are pleased to join forces with Masdar through this signing,” adds Alain Ebobissé, Chief Executive Officer of Africa50.
2023: Savant Venture Fund co-investment in BurnStar Technologies
- BurnStar is at the forefront of South Africa’s hydrogen transition, leveraging its cutting-edge patented liquid metal reforming process for the production of hydrogen. This innovative technology allows BurnStar to convert Methane, LNG, or LPG feedstock through methane pyrolysis into high-purity hydrogen, with near-zero carbon dioxide emissions. As a result, BurnStar is paving the way for a more sustainable, low-carbon hydrogen future.
- Savant Venture Fund sees BurnStar’s innovative approach to clean hydrogen production as a game-changer in the global energy landscape.
“We are thrilled to be investing in Johan Brand and his team as they commercialise what we believe to be a world leading technology in clean hydrogen production. The BurnStar solution has strong commercial promise in both industrial processing application and clean energy storage. This investment will demonstrate the first step towards paving the way for guilt-free hydrogen™ applications both locally and internationally!” — Francois Malan, Partner at Savant.
ENERGY: CLEAN COOKING
2030 BREAKTHROUGH: 2.4 billion people with access to clean cooking through at least $10 billion in innovative finance each year for clean cooking action worldwide.
2012: Agreement between Oando Marketing PLC (OMP) and Alitheia Capital to introduce Loan scheme for Low Income Households to switch to Cooking Gas
- Access to Liquefied Petroleum Gas (LPG) by the low-income group has been hindered primarily by affordability and accessibility. To address the issue of affordability, OMP introduced a portable 3kg cylinder to suit the purchasing power of this socio-economic group. The cooking stove cost N6,800 and customers can refill with any amount they can afford per time through the company’s Pay-As-U-Gas metering system or swap the cylinders for an outright refill at N800.
- The OGAS cooking stoves are directly available to end-users via the company’s existing vast network of over 500 retail stations and a growing network of authorized distributors.
2020: African Development Bank invests in pioneering SPARK+ Africa Fund to deliver clean cooking solutions
- AfDB’s Board of Directors approved a US$5mn investment in the SPARK+ Africa Fund to deliver clean cooking solutions to over two million households across Africa.
- During the first year since its launch in March 2022, Spark+ has made five investments, and it is in the process of receiving its last investor commitment, after which a final closing at some $64m is expected, well in excess of its original target of $50m.
“By investing in the rollout of clean cooking solutions to millions of households, the Bank is also contributing to women’s empowerment, employment creation and reduced deforestation associated with charcoal production,” said Dr. Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate and Green Growth.
ENERGY: ROAD TRANSPORT
2030 TARGET: BEV and FCEV make up 60% of global bus sales and 35–40% of global heavy goods vehicles sales by 2030. ZEV makes up 100% of total global passenger vehicles & vans sales by 2030 (in key markets)
2022: Meridiam signs the contract for the first electric bus in Africa in Dakar
- Meridiam’s contract for the Bus Rapid Transit (BRT) project in Dakar, in partnership with Keolis and Fonsis, is the first of its kind in Africa and represents a total investment of more than €135mn. It includes operation and maintenance for 15 years of this new clean public transport network, dedicated to 100% electric buses.
The Dakar BRT will provide sustainable solutions to:
- Greener future
The buses will run on batteries charged with 100% renewable electricity and will improve air quality in Dakar avoiding the emission of 59,000+ tonnes of CO2 per year. - Job creation
This project will create about 1000 direct and local jobs, with a focus on women and young people, of which about one third will be drivers.
Due to the BRT being twice as fast as other transport, 50% of Dakar’s inhabitants will have access to more than 8,000 additional jobs. - Passenger transport and road congestion
Dakar is one of the largest cities in West Africa and the economic and political capital of Senegal. Its population (3.8 million) is expected to grow by about 40% over the next decade.
Travel within the city is expected to double in the next 20 years.
