Project profile — Supporting Renewable Energy in Africa - Africa Renewable Energy Initiative (AREI)

This initiative establishes a loan fund managed through the World Bank Group’s International Finance Corporation (IFC) in support of the objectives of the African Renewable Energy Initiative (AREI). It will help increase Africa’s energy access and curb the effects of climate change through private sector investments in eligible renewable energy projects. This was announced at the Climate Change Conference of Parties (COP21) in Paris, in December 2015, as part of Canada’s pledge of $2.65 billion (2016-2021) to support the efforts of developing countries towards a low-carbon future. IFC lends Canadian funds on concessional terms alongside its commercial resources to eligible renewable energy projects. These funds leverage other public and private sectors investments, thus “unlocking” private capital that would not normally be available for these projects due to perceived risk. Borrowers would be private sector companies, seeking funding to support the construction and operation of renewable energy infrastructure projects, such as solar, hydro and biomass. AREI is an African-led continental framework that aims to accelerate access to sufficient, clean, appropriate, and affordable energy using renewable energy systems. It aims to mobilize Africa’s potential to generate at least 300 GW additional renewable energy capacity by 2030.

The expected outcomes for this project include: (1) generated 490,000 MWh/year Renewable Energy; (2) installed 270 MW Renewable Energy; (3) leveraged US$350 million additional Private/Public Sector investment; (4) reduced/avoided 340,000 metric tons of CO2/year Greenhouse Gas; and (5) reached 930,000 residential customers.

Results achieved as of May 2025 include: (1) provided a US$ 25 million loan to scale up clean energy production in Gabon, resulting in constructing the Kinguele Aval hydropower plant. It is expected to generate 203 Gigawatt hours of electricity, saving more than 90,000 tons of carbon dioxide (CO2) emissions per year; (2) provided a US$10 million loan to help finance a project with Daybreak Power Solutions Limited (Ltd) to expand solar power generation in off-grid areas of Nigeria, aiming to reduce greenhouse-gas emissions by over 32,000 tons of CO2 annually; (3) provided a US$25 million loan to Release by Scatec to provide pre-assembled, modular solar power containers and battery storage solutions in Chad and Cameroon. The project adds 35 megawatts (MW) and 36 MW of power to the national grids in Chad and Cameroon respectively; (4) provided a US$10 million loan to the Facility for Energy Inclusion, a dedicated pan-African fund focused on decentralized renewable energy. The fund aims to on-lend to companies operating in the small to mid-scale distributed power sub-sectors; (5) provided a US$25 million loan Sun King to scale access to off-grid solar energy in Nigeria through a Naira-denominated loan facility. This facility allows Sun King to extend local currency loans through its pay-as-you-go model, improving affordability for low-income and rural consumers while mitigating foreign exchange risks; and (6) provided a US$2.5 million loan to Husk Power Energy Systems Ltd to expand access to reliable, renewable energy in underserved communities across Nigeria, allowing the development and operation of up to 108 mini-grid sites, resulting in affordable energy to around 115,000 people and businesses.