Renewable Energy Performance Platform 2

Debt : December 2024

BIO has granted a USD 15 M loan to the Renewable Energy Performance Platform 2, a 20-year close ended debt fund focused on renewable energy.

Amount

$ 15,000,000.00

Type of investment

Debt

Development impacts

Access to basic services & goods
Fight against climate change
Gender
Financial additionality

Beneficiary locations

Africa: Cameroon, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Zambia

Investment field

Investment Companies & Funds

Activity

KK.64.301 Infra Fund

Organisation

Renewable Energy Performance Platform 2

Website

https://www.camco.fm/repp-2

Domicile

Luxembourg

REPP2 will focus on return-guaranteed transactions and benefit from lessons learned from REPP1. A key investor of REPP2 is the Green Climate Fund.

REPP2 will address the financing gap faced in each of the 3 relevant segments of the African energy grid, being

off-grid solar home systems (10% portfolio),
mini-grids and isolated grids (50% portfolio), and
on-grid renewable energy power production (40% portfolio).

Target projects are small-medium energy projects (<25 MW), and there is a focus on LDCs (50%).

BIO will invest in parallel with FMO, Ceniarth and others.

Development impacts

Access to basic services & goods
Supporting green energy generation in LDCs (min. 50% of funds) and especially in rural areas, thus increasing reliable access to affordable clean energy: through the fund's mix of sectors (including solar home systems and small grids) an estimated 1 million of new electricity connections, reaching 370,000 direct beneficiaries in total.
Fight against climate change
Funding the installation of 330 MW of renewable energy capacity in 34 projects (solar, wind, hydro), expected to generate 812 GWh annually and avoid the emission of 4 million tCO2e during the 7 years investment lifespan.
Gender
The portfolio targets at least 30% of invested amount to be Gender Lens Investment aligned, and the fund manager demonstrates intentionality, tracks gender-split data, performs well in terms of grievance mechanisms and GBVH policies. REPP 2 is 2X eligible based on the Leadership, Employment, and Indirect criteria.
Financial additionality
Addressing the financial gap for risk and flexible funding that is highly needed to finance targeted projects and is not offered by local banks, thereby also helping to attract other investors and contribute to private sector mobilisation.

E&S Impact

Actions of improvement include developing the environmental and social (E&S) team capacity, resources and training, updating the E&S management framework, improving the E&S assessment done by the Fund for investee companies, updating E&S monitoring process and improving the E&S monitoring. Additional aspects to be reinforced such as the upgrade of the grievance management process at investees level to include contractors, and reinforced E&S monitoring rules have been added to the Environmental and Social Action Plan (ESAP).

Situation at the time of investment

The environmental and social (E&S) process is relatively well-defined and provides guidance for all IFC Performance Standards as well as a set of tools and templates for screening, E&S Due Diligence process and Environmental and Social Action Plan (ESAP) creation. Improvements have been identified and set in the ESAP, which is aligned with FMO and Norfund.

Risk Category: B+