Green Africa Power
Green Africa Power (“GAP”) was created to help African countries reduce their dependence on fossil fuels by diversifying into renewable energy. GAP facilitates this through the provision of mezzanine finance and contingent lines of credit. GAP currently has £121m of funds under management.
EISER Infrastructure Partners LLP (“EISER”) is the financial advisor to GAP. In this capacity, EISER is responsible for advising GAP on transactions, including deal origination, structuring, negotiating on documentation, performing due diligence on transactions and associated entities, and monitoring GAP's portfolio. As such, EISER acts as the main point of contact for all enquiries related to GAP.
Objective of GAP initiative
GAP’s vision is to stimulate private investment in renewable energy projects in lower income countries in Africa.
To meet this vision, GAP provides (i) subordinated loan instruments, which are structured to allow shareholders and stakeholders to overcome some of the factors preventing investment in renewable energy projects; and (ii) contingent lines of credit, to cover risks for which senior debt lenders would otherwise require additional equity, such as a specific construction risk.
Access to reliable electricity supply is seen as a cornerstone for social and economic development. GAP has the ambitious target to finance approximately 270MW of new renewable energy generation capacity, saving 3.9m tonnes of carbon emissions and improving the supply of clean energy to millions of people in Africa. Through its selected investments GAP will seek to demonstrate the viability of renewable energy in Africa and how barriers to investment can be addressed. The GAP concept was initiated by the Private Infrastructure Development Group (“PIDG”) which is a multi-donor, member-managed organisation. The PIDG members who are currently contributing to the GAP facility include the UK Department for International Development (“DFID”) and the Department for Business, Energy and Industrial Strategy (“BEIS”). Additional funding may be provided by other donor countries or international financial institutions.