$56 Million From NORAD to Guarantee Renewable Energy Projects in Africa
The Norwegian Agency for Development Cooperation (NORAD) is providing a $56 million grant to the Africa African Trade Insurance Agency (ATI). The funding will help insure independent renewable energy producers in Africa.
The Norwegian Agency for Development Cooperation (NORAD) grant of NOK 500 million (approximately $56 million) to the African Trade Insurance Agency (ATI) is intended to expand the Regional Liquidity Support Facility (RLSF), as well as the development of additional insurance or guarantee products to support small and medium-sized renewable energy initiatives.
The RLSF is a partnership between ATI and Kreditanstalt für Wiederaufbau (KFW), the German development agency. The mechanism aims to mitigate climate change through support for renewable energy production. According to the ATI, the RLSF is designed to address the short-term liquidity risks faced by independent power producers (IPPs) that sell electricity to state-owned utilities in sub-Saharan Africa.
Photo courtesy of Karsten Würth.