responsAbility Renewable Energy Holding (rAREH) aims to increase the renewable energy supply in Sub-Saharan Africa in a responsible way while generating attractive, long-term and stable cash flows across a diversified portfolio of renewable energy plants. rAREH was created in December 2013 with the goal to invest in and co-develop small- and medium-sized renewable energy projects up to 50 MW at various stages of the project life cycle, from development and construction to operations.

A particular focus will be on the development stage and to facilitate bankable, long-term power purchase agreements with national grid operators. The current portfolio comprises 14 projects totalling about 160 MW in development across the region. Many of these projects fall under a feed-in tariff (FIT) programme with the local utility company as an off-taker, whereby tariffs are fixed by the government. The offering encompasses equity and quasi-equity financing. rAREH is managed by responsAbility Investments AG, a Zurich-based asset manager.

rAREH has established a Nairobi-based implementation team combining experienced power project developers with young, talented local staff. This team is developing a pipeline of projects in various African markets. These are mostly run-of-the-river hydropower projects.

Pasi Hellman, Managing Director of NDF, says: “NDF is proud to support renewable energy supply in Sub-Saharan Africa by focusing on the equity niche markets. The demand for energy is a key development challenge in Africa, and this project addresses the issue in a socially and environmentally responsible way. We will help to implement the projects in the pipeline and act as a catalyser for further investments by other development finance institutions as well as private investors.”

Kjell Roland, CEO at Norfund, says: “Investing in clean energy projects is a high priority for Norfund as access to energy is crucial for development and poverty reduction. This investment will give Norfund a 14% share in responsAbility Renewable Energy Holding. In addition to being an investor, we are prepared to contribute with expertise by being an active owner and will appoint a qualified representative with board experience to the rAREH board.”

Rochus Mommartz, CEO at responsibility Investments, says: “Investment and co-development of renewable energy in small- and medium-sized projects – a niche area – in Sub-Saharan Africa are vital as they support local access to affordable clean energy and climate stability by reducing the carbon intensity of energy.”

See full press release here