Green Africa Power UNFCCC Regional Workshop on Nationally Appropriate Mitigation Actions for Africa Kigali, Rwanda 17–19 August 2015

Renewable Energy Financing in Africa Renewable Energy Project Finance Model Debt -by DFI(IFC/PROPARCO/DEG/FMO/OPIC, etc) = (50% - 85%) Debt -by Banks(Standard Bank/RMB/Barclays etc) = (50% - 85%) Mezzanine financing(GAP/FMO/DEG) = (5% - 15%) Equity(Developers such as Scatec solar/BioTherm etc) = (15% - 50%)

Renewable Energy Financing in Africa Developer Scatec Financing Volume USD135m Debt Providers Standard Bank Group Equity Investors Norfund / Scatec Solar AS / Standard Bank Group Ltd. / Old Mutual Life Assurance Company Ltd. / Simacel Legal Advisors Trinity International LLP / Norton Rose Fulbright / DLA Piper LLP / White & Case LLP Project Equipment/ Services Providers SMA Solar Technology AG Case Study in SA: Linde Solar PV Farm MW Source: Clean Energy Platform

Renewable Energy Financing Options

Current Status GAP formed April Part of the Private Infrastructure Development Group (PIDG) Funded by UK Government £95m. Funding agreement signed October 2014 & Norwegian government £26m (NOK 300m) signed December 2014 Management Board appointed. London based EISER Infrastructure LLP appointed Investment Manager July 2014 supported by Camco Clean Energy plc who have operations in London and several African locations. EISER & Camco are meeting developers to set up a pipeline of projects that need some GAP support to become viable.

Private Infrastructure Development Group DevCo – managed by WB/IFC advising governments on structuring transactions to facilitate private sector participation in Infra.. Guarantco – Provides guarantees to lenders to support local currency finance for projects ICF-DP – Direct financing for projects in emerging economies Infraco Africa – Early stage infrastructure project development fund Infraco Asia Technical Assistance Facility – Assist other companies in capacity building The Emerging Africa Infrastructure Fund – PPP offering long term debt and Mezz debt for infrastructure GAP

GAP’s Mission Access to Reliable Electric Power is seen by many as an essential cornerstone of economic and social development including the enhancement of status of women and girls. Sustainable growth through the use of renewable technology brings an added benefit by reducing the effects of climate change. GAP will work with private sector developers to help them to bring forward new projects in this field. GAP will work with host governments to identify and overcome road blocks that are preventing the start up of new renewable power generation projects. GAP will encourage acceleration of new project ideas by measuring success and publicising the results of its activities to as wide an audience as possible.

GAP’s Investment Policy Total Funding available currently £121m - to cover investment and operating costs. UK Department For International Development (DFID) £70m UK Department for Energy & Climate Change (DECC) £25m Norwegian Ministry of Foreign Affairs (MFA) £26m (NOK 300m) Targeting Private Sector Renewable Energy On Grid Power Generation, Investment in at least three DAC 1,2 and 3 countries in Sub Sahara Africa ( minimum 75% DAC1 & 2). At least three types of renewable technologies (wind, solar, hydro, geo-thermal, biomass, waste to energy) Investment via Mezzanine (Quasi Equity) Loans or Contingent Lines of Credit. Maximum Investment by GAP 20% of Capital Costs. Private Sector must invest at least twice the GAP Investment over the portfolio. GAP loans will be long term (typically 10+ years up to 20 years if supported by an appropriate PPA) and with commercial interest rates usually in the range of 10-12% pa. Investment Commitment Period First Investment targeted Q

How GAP works GAP will consider approaches from developers who have projects that fit the GAP mandate. Developers can contact GAP via the website :- Projects will be reviewed initially by the Investment Manager’s Team. Final approval rests with the GAP Management Board. All investments held in the name of GAP.

Funding for Future Development GAP hopes to have committed the full value of its current funding by end 2017 with all funds invested by Limitations on the number of projects that can be financed would be a maximum of 5 per year. GAP will receive income from its loan portfolio but this will only cover at most one addition project per year from 2018 onwards. GAP can “recycle” proceeds from loan repayments or refinancing of projects but this unlikely to occur significantly before 2020.

GAP Management Board Jim Cohen – Chairman (based UK) James Neal (based UK) Peter Bird (based Singapore) Godfrey Mwindaare (based Ghana) Supported by Peter Hutchinson – Executive Director Based in London (Contact

EISER Infrastructure LLP London based fund management group specialising in Infrastructure Investment Opened office in Jo’burg late 2014 ( 2 staff full time on GAP mandate) Participation in circa £3bn of Infrastructure Investment Contact Vivian Nicoli

Camco Clean Energy plc London AIM listed company operating in the renewable energy sector Offices in London, US, RSA (co-located with EISER), Kenya, Tanzania & Togo. Also opening an office in Ghana. Project developer & participation in innovative battery storage technology Africa Based Advisory (Climate Change, Environment, Carbon Markets, RE Policy, Land Use & Forestry) Contact Eugene Obiero