ImpactAlpha, June 21 – Berkeley Energy is looking to build hydro, wind and solar projects, as well as battery storage facilities, to meet Africa’s accelerating electricity demand. The London-based affiliate of sustainable investment firm Earth Capital is targeting grid-connected projects in Cameroon, Kenya, Angola, Madagascar and Malawi.
The firm reached a first close for its targeted €300 million ($356 million) fund with backing from seven development finance institutions: Italy’s CDP, the U.K.’s CDC, the Netherlands’ FMO, France’s Proparco, Swedfund, the African Development Bank and the Climate Investment Funds.
The African Development Bank’s Sustainable Energy Fund for Africa and Climate Investment Funds’ Clean Technology Fund provided first-loss capital to “offer private investors the ability to have an enhanced capital return in downside scenarios where the fund does not meet its targeted returns,” a spokesperson for Berkeley Energy told ImpactAlpha.
Berkeley made nine investments in six countries with its first Africa Renewable Energy Fund of $200 million.