The Rockefeller Foundation has announced its partnership with the International Finance Corporation (IFC). The partnership is aimed at catalysing private-sector investment in renewable energy solutions.
The partnership between both organisations is fitted with the goal of mobilizing up to US$2 billion in private-sector investment, as well as deploying US$150 million in blended finance to de-risk capital investment in projects.
The project is targeted at emerging markets in selected African regions, especially sub-Saharan Africa, where both organisations have identified immediate opportunities.
With the blend of philanthropy and investment funding, Rockefeller and the IFC will, in the initial “rapid deployment” phase, distribute US$30 million in blended concessional finance, and grant capital to leverage a pipeline of projects developed by IFC.
Some of the projects in the pipeline include a prototype scaling mini-grid program, and technologies for distributed renewable energy generation, battery energy storage, and facilitated access.
A portion of the funding will be used to provide technical assistance, targeted feasibility studies, and cost-sharing support to private-sector clients and governments.
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Speaking on the intending project, the president of Rockefeller Foundation, Rajiv J. Shah, noted that:
“Investing in renewable energy infrastructure in communities that have not had access to reliable power will ensure that the recovery from the Covid-19 crisis is both green and equitable. The landscape of energy technologies we are investing in will make it possible for every person on the planet to have totally reliable, productive electrification.”
Managing Director of International Finance Corporation (IFC), Makhtar Diop, also said:
“The climate challenge at its core is an energy challenge. The twin goals of improving energy access and addressing climate change both require our urgent attention but can’t be achieved with public resources alone. The private sector can and must be part of the solution if the scale of our results is to meet the scale of our ambitions.”
The collaboration between IFC and Rockefeller Foundation is part of both organizations’ commitment to ending energy poverty, and delivering reliable, sustainable power to millions across the world, starting with an exclusive focus on the private sector of developing countries.