GEAPP and Chapel Hill Denham Secure $50 Million to Accelerate Renewable Energy Innovation Growth in Nigeria
GEAPP and Chapel Hill Denham Collaborate to Launch $50M Energy Transition & Access Facility for Africa (ETAFA) in Nigeria
The Global Energy Alliance for People and Planet (GEAPP) and Nigerian investment firm, Chapel Hill Denham (CHD), have joined forces to establish ETAFA, a groundbreaking financing initiative. With an initial capital of $10M from GEAPP and an additional $40M mobilized through the Chapel Hill Denham Nigeria Infrastructure Debt Fund, ETAFA aims to support distributed renewable energy (DRE) projects in Nigeria.
ETAFA’s innovative financing model offers Naira-denominated, low-cost, long-term financing options to make DRE solutions more affordable, especially for lower-income consumers. This strategic approach addresses the current challenges faced by DRE developers in Nigeria, who often struggle to secure subordinated capital and local currency financing for their projects.
By providing long-dated local currency financing, ETAFA mitigates the risks associated with currency mismatches between revenues and borrowings, thereby enabling sustainable growth in the DRE sector. With DRE recognized as the fastest and most cost-effective means of expanding clean electricity access in Africa, ETAFA is set to unlock Nigeria’s immense potential in this field.
“We welcome this support from GEAPP which will help Chapel Hill Denham with two of our strategic priorities,” said Bolaji Balogun, CEO of CHD.
“Reducing the number of Nigerians without any access to electricity; and accelerating the adoption of renewable sources of energy. With partnerships with global institutions such as GEAPP, CHD seeks to mobilise up to US$1 billion for clean energy projects in Nigeria and Africa by 2030. It is also targeting to reduce the number of people without access to modern energy in Nigeria and Africa by half in the same timeframe.”
“Renewable energy development is paramount for Nigeria to transition to clean energy and meet critical climate goals, while powering economic and social development” says Stefanie Fairholme, GEAPP’s Head of Investments.
“GEAPP’s partnership with CHD aims to tackle the barriers to Nigeria’s clean energy transition by providing the de-risking capital needed to stimulate the financing of projects that bring clean electricity to, and promote the economic development and sustainable livelihoods of, underserved communities.”
The collaborative efforts of the Global Energy Alliance for People and Planet (GEAPP) and Chapel Hill Denham (CHD) are part of a broader mission to foster positive change in Nigeria. GEAPP, an alliance consisting of philanthropy, governments, technology, policy, and financing partners, is dedicated to facilitating a transition to a clean energy-driven, pro-growth model that promotes universal energy access and inclusive economic development. In line with this vision, GEAPP aims to achieve significant milestones, including enabling 4 million new mini-grid connections, benefiting 20 million people, and generating 50,000 job opportunities in Nigeria.
With support from esteemed philanthropic partners like the IKEA Foundation, The Rockefeller Foundation, and the Bezos Earth Fund, GEAPP focuses on creating an enabling environment and fostering market conditions for private sector solutions. The alliance actively encourages innovation, entrepreneurship, and the deployment of high-risk capital to catalyze new business models that address energy challenges while promoting a just transition.
By striving to reduce future carbon emissions by 4 gigatons, expanding clean energy access to one billion people, and enabling the creation of 150 million new jobs, GEAPP and its partners are working towards ambitious goals that contribute to the global community’s efforts in meeting crucial climate objectives.
source:www.energyalliance.org
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