Empower New Energy
- Business model
Together with Norfund and others, ElectriFI contributed to the first closing of Empower Invest, a facility targeting majority ownership in CPP projects and small scale IPP projects, mainly in Subsaharan Africa. ElectriFI committed to USD 3.2 million.
Contract Signature date: September 2019
Total ElectriFI Financing: USD 3.2 m
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Empower Invest is the first investment platform set up by Empower New Energy, designed to take majority equity stakes in renewable energy-based Commercial & Industrial (C&I) and small Independent Power Producers (IPP) projects. Empower aims to unlock small IPP and mid-size C&I projects by entering into a partnership with local and international developers during late-stage development phase to increase bankability of the projects, and subsequently provide equity to fully cover project-level construction costs. After initial operating period, the projects will be refinanced with debt at portfolio level. Regional focus for the moment is on East- and West-Africa and Empower offers local presence in Nairobi and Accra.
Funding objective and impact:
Funding will be used for Empower’s initial pipeline of projects in Kenya, Ghana, and few other countries. Co-investors in the first round are Norfund and a number of Norwegian private investors, while a number of other larger investors is being lined up for a second larger capital raise already.
Why ElectriFI wants to fund this project:
Empower financing unlocks C&I and small IPP projects currently lacking access to financing, by assisting the developers to increase bankability of the projects, and offer initial full equity investment.
- Number of beneficiaries
- Annual output (MWh/y)
- GHG avoidance (tCO2eq/y)
- Empower Invest
- Financing instrument
- USD 3.2m
- Ghana, Kenya, and others
- Solar PV and Hydro
- Business Model
- Small C&I and IPP
- ElectriFI global