France’s former energy minister, Jean Louis Borloo, aims to raise $3 billion (ZAR41 billion) for his Energies for Africa project to help African nations fund renewable energy projects, Reuters reported on Wednesday.
Borloo said his Energies for Africa project already had commitments from Western governments, which would be used to ensure African nations had the capital to contribute their share of major renewables projects.
Launching at COP21
Through Energies for Africa, Borloo aims to tackle pollution and spur development in Africa.
However, he did not give specific details but said he hoped to showcase the Energies for Africa project at the global climate summit in Paris in December.
He said that once the initial fund was established, African nations would pay annual quotas to make it sustainable, with high polluting countries paying more than low polluters.
“We have already met 44 heads of state who have come on-board. European and American partners support the initiative and have promised to contribute to it,” Borloo told Reuters.
Hydro development in Guinea
Borloo cited the example of the 240MW Kaleta hydroelectric dam, which was inaugurated in Guinea on Tuesday.
Without a windfall payment of $700 million from miner Rio Tinto, linked to its Simandou iron ore deposit, Guinea would not have been able to pay its 25% stake in the $526 (ZAR7 billion) million dam, Borloo explained.
The remaining three-quarters of Kaleta’s financing came from the China International Water and Electric Corp, which built the dam.
Clean power projects need funding
Borloo said the target was to have the renewable energy fund reach $4 billion (ZAR55 billion) by 2017 and $5 billion (ZAR68 billion) by 2018.
Energies for Africa estimates the development of renewable energy on the continent will cost between $200 million (ZAR2 billion) and $250 million (ZAR3 billion) by 2025. African governments will need to find at least $5 billion (ZAR68 billion) a year to cover their share of the projects.