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11th December 2012

New PIDG Company - Green Africa Power

Green Africa Power is a new £98 million fund run by PIDG, to stimulate private investment in renewable energy projects in sub-Saharan Africa.

“Climate change is a global threat and with every passing year, the nature and the extent of that threat grows clearer. We also recognise that the world’s poorest will be hit the hardest by the impacts of climate change and we need to help communities adapt to these challenges. Climate finance is fundamental to building resilience and capacity for countries to mitigate and adapt to climate change.”

Secretary of State for Energy and Climate Change - Edward Davey MP

UK Climate Change Minister Edward Davey MP announced a new £98million fund, Green Africa Power to coincide with the UN Climate Change Conference in Doha.

Sub-Saharan Africa is the world’s most power-starved region with more than 700 million people lacking access to electricity. There is a shortage of all types of power generation projects in Africa and, in particular, renewable power projects. The economic cost of this power shortage is reckoned at some 4% of gross domestic product.

For some time, the donor community has been concerned about the slow pace of low-carbon technology adoption in developing countries and the challenge of promoting cleaner energy options in preference to dependence on fossil fuels.

The Private Infrastructure Development Group (PIDG Trust) was invited by the Department for International Development (DFID), to suggest ways to set up systematic interventions to drive forward renewable independent power projects.

A scoping exercise funded by DFID and the Norwegian Agency for Development Cooperation (Norad) concluded that there was definite potential for Green Africa Power, a fund to address key market failures and stimulate private sector investment in renewable energy in Africa.

On 4 December Edward Davey MP announced an initial input of £98million from the UK Government to Green Africa Power (‘GAP’) as part of a package of support using the UK’s International Climate Fund to help developing countries to tackle climate change and to reduce poverty.

GAP has ambitious target to finance approximately 270MW of new renewable energy generation capacity in four years, saving 3.9m tonnes of carbon emissions and improving the supply of clean energy to millions of people in Africa. Through its selected investments GAP will seek to demonstrate the viability of renewable energy in Africa and how barriers to investment can be addressed.

If you have any queries regarding this new PIDG company please direct them to