The US-Africa Clean Energy Finance (ACEF) initiative reportedly reached 100% commitment of their initial $20 million project funds in December. The project was designed to support early stage private-sector investment in renewable energy in Sub-Saharan Africa. ACEF was launched at the UN Conference on Sustainable Development 2012 under then Secretary of State Hillary Clinton. At the US-Africa Leaders Summit in August of 2014, current Secretary of State John Kerry announced his support for the project and pledged that the US will invest another $10 million.
So far the project has seen much success and praise with funds having been invested in nearly 30 different renewable energy projects in 10 African countries. The US Trade and Development Agency reports: “The initial $20 million of funding has the potential to lead to more than 400 megawatts of new renewable power in Africa and could mobilize more than $1.5 billion in project capital, a ratio of $75 for every $1 from the ACEF program.” The initiative has a goal of making energy more reliable in Sub-Saharan Africa in both urban and rural environments while also inviting private investment. Projects include a 150 megawatt wind farm in Senegal and a 12 megawatt “run-of-the-river” hydroelectric power facility in Rwanda.
Todd Stern, US special envoy for climate change at the US State Department states: “ACEF is an excellent example of how we can use limited public resources to leverage the private financing necessary to fuel low-carbon growth in developing countries – a key step in meeting the challenge to address climate change.
Learn more about this initiative here.