Berkeley Energy raises €130m for Africa Renewable Energy Fund II

Berkeley Energy has raised €130 million for its Africa Renewable Energy Fund II (AREF II). The fund will focus on the development, construction, and operation of renewable energy assets and technologies across sub-Saharan Africa.

The investment was raised from Proparco, CDP, CDC, FMO, Swedfund, Sustainable Energy Fund for Africa (managed by the African Development Bank) and the Clean Technology Fund (part of the Climate Investment Funds).

AREF II has a final target fund size of €300 million, and will primarily focus on run-of-river hydro, wind and solar projects, as well as battery storage opportunities across sub-Saharan Africa (excluding South Africa).

With strong population growth rates and rising GDP, sub-Saharan Africa’s electricity demand is set to more than double by 2040 requiring approximately $100 billion investment in power sector infrastructure per annum. AREF II is primed to address this market opportunity by backing mid-sized grid-connected projects, typically between 10MW and 100MW each.

Luka Buljan, managing director of Berkeley Energy commented, “The successful first close of AREF II sends a clear sign of confidence that our hands-on, asset-first, technically orientated approach resonates with our investors and makes a material difference for the communities in which we operate. Our track record of delivering projects and strong investment returns means we are well placed to serve sub-Saharan Africa’s growing demand for clean, affordable and reliable energy.”

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