Technical assistance

TAF

Green Africa Power

Intermediate capital and mezzanine financing for renewable energy power generation

Projects that reached financial close in 2016

Senegal Senergy 2

Projects that became operational in 2016

Senegal Senergy 2

Achievements in 2016

GAP achieved financial close on Senergy 2, a first-of-its-kind solar power plant in Senegal. GAP provided a short-term bridging finance loan to enable construction to be completed and the plant is now operating at full capacity. Following Senergy 2’s success, GAP will consider similar construction finance for other small renewable energy projects which are vital to diversifying the energy mix in sub-Saharan Africa.

Other notable highlights

GAP is able to offer innovative, intermediate capital solutions to renewable energy projects that would otherwise fail to reach financial close. This means that GAP must remain flexible in its approach to its project pipeline in order to respond promptly to any financing needs that arise in the market.

GAP is exploring solar projects and development programmes with a focus that recognises the region’s high levels of sunshine and the speed at which solar plants can be installed, enabling communities to access power more quickly. GAP recognises, however, that solar alone cannot meet the huge power needs that exist and is therefore looking at other renewable energy sources. Such sources include hydro, wind and geothermal power, all of which take longer to construct than solar but can form part of a country’s balanced renewable energy portfolio. Some projects can only proceed with an initial phase financed by equity and a GAP intermediate capital solution until the project is de-risked for senior debt to come on board.

2017 and Beyond

GAP’s innovative and flexible nature will continue to be important in meeting the varying needs of individual projects and making sure they get ‘over the line.’ In the year ahead, GAP will maintain close relations with TAF and DevCo whose work supports the flow of viable projects and addresses blockages. GAP is also considering co-funding opportunities with InfraCo Africa, EAIF and GuarantCo from the PIDG family.

Annual Report 2016

DevCo

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Annual Report 2016

Annual Report 2016

Annual Report 2016

Annual Report 2016