Europe funds green energy in Africa

Over 1.6 billion people worldwide are unable to access reliable energy sources. Europe is hoping to help solve this problem by investing in renewable energy projects in Africa and other parts of the majority world.

The Global Energy Efficiency & Renewable Energy Fund, which totals €80 million, was launched this week by the European Commission.

Over the next four years, the Fund will support renewable energy projects in Africa and other parts of the majority world. The fund will particularly focus on supporting small-scale projects.

Renewable energy projects often find it difficult to raise money through commercial funding, and the EC hopes that the new fund will help to address this problem.

The EC’s Environment Commissioner, Stavros Dimas, said: “Developing countries must have access to affordable and clean energy supplies: this is a prerequisite for sustainable development.

“This fund can foster private investments and become a real source of sustainable development, especially in Africa”.

The GEEREF will give priority to projects using technologies that have a proven track record. They will also prioritise investments of less than €10 million, as these are the projects most often ignored by commercial investors.

The EC hopes that by providing seed money, further money wil be drawn in from venture capitalists and other public bodies.