African Development Bank Approves $324 Million Loan for Renewable Energy Projects
The African Development Bank (AfDB) approved $324 million (~₹20.84 billion) in loan support for two renewable energy projects. The projects are being developed in Morocco and Côte d’Ivoire. The loan is In line with the New Deal on Energy for Africa.
The New Deal on Energy for Africa is a partnership-driven effort with the aspirational goal of achieving universal access to energy in Africa by 2025.
In Morocco, the AfDB has committed $265 million (~₹17.05 billion). The commitment of $265 million (~₹17.05 billion) will help develop two solar power projects (NOORM I and NOORM II) at a total cost of €2.048 billion (~₹155.07 billion) with a cumulative capacity of 800 MW, under a public-private partnership (PPP).
The solar projects will be connected to the national grid, and will guarantee electricity supplies to more than 2 million Moroccans (approximately 6 percent of the country’s population) and significantly reduce CO2 emissions. The investment is part of the African Development Bank’s continued support to Morocco’s $3 billion (~₹193.02 billion) NOOR solar energy program.
In Côte d’Ivoire, the AfDB has committed $59 million (~₹3.79 billion). The commitment will be utilized to develop the Singrobo-Ahouaty project. The Singrobo-Ahouaty project involves the design, construction, and operation of a 44 MW hydropower project on the Bandama River. To meet rising domestic and regional demand, Côte d’Ivoire intends to significantly raise its generation capacity, including hydropower.
“These approvals demonstrate once again the African Development Bank’s leadership on renewable energy in Africa,” said African Development Bank President Akinwumi Adesina. “These projects will be essential to achieving the countries’ Nationally Determined Contributions (NDCs) under the Paris Agreement. I believe this sends a strong message ahead of the One Planet Summit on Climate next week in Paris,” added Adesina.
In Africa the demand of renewable energy is increasing as there are over 600 million people without electricity connection. This has opened up a great investment avenue for banks and other financial institutions in Africa.
Image credit: AfDB