AfDB Finances Green and Efficient Energy to Combat Climate Change

On 17 May 2023, Jalel Chabchoub, Chief Investment Officer of the Renewable Energy and Energy Efficiency Department of the AfDB, issued a press release to provide an assessment the #MDB’s program to promote #EnergyEfficiency in order to contribute to the fight against #ClimateChange.

“Today, we no longer talk about #ClimateChange or Global Warming, but rather about Climate Shock.”

AfDB Chief Investment Officer, Mr Jalel Chabchoub

Mr Chabchoub firmly believes that #EnergyEfficiency is a central driver for the #GreenTransition. #EnergyEfficiency not only lowers electricity bills and cuts down on harmful emissions but can also improve a country’s industrial competitiveness.

It is to be recalled that the AfDB has been supporting both public and private sectors across Africa towards #NetZero through its Sustainable Energy Fund for Africa (#SEFA) launched in 2011. The objective of the #SEFA is to promote the adoption of renewable energy and best practices for #EnergyEfficiency. For instance, #SEFA can provide both technical and financial assistance for bankable energy projects which are green and efficient.

SEER and SCOP Rating for Air Conditioners

One of the possible approaches is to set up a Public Institution dedicated for #EnergyEfficiency, technically dubbed as Super Energy Service Companies or Super ESCO. Then, the Super ESCO works to identify #EnergyEfficiency projects in the public sector which can be implemented by the private sector based on the Energy Performance Contract (EnPC) Schemes.

Morocco was the first country to receive support from AfDB to create a Super ESCO in the shape and name of the Energy Engineering Company of Morocco. As seed finance, the Super ESCO of Morocco received a grant from AfDB of nearly USD 1 million to kickstart operations. So far, it has developed several projects in the areas of air conditioning and street lighting to ease the #EnergyTransition.

Wind-Powered Street Lighting

In Kenya, a different approach was taken via a USD 1 million grant to Kenya Power and Lighting Company (KPLC). There, the Super ESCO operated within the structure of the KPLC to push for renovation and upgrade of air conditioning and heating systems by applying newer technologies with higher #EnergyEfficiencies.

Furthermore, Namibia Super ESCO focuses on promoting solar water heaters while Mozambique upgraded street lighting to more efficient LED technologies, at times powered by #GreenEnergy. And the list goes on.

Egypt Benban Solar Park

Going beyond #EnergyEfficiency, the AfDB also supports renewable energy generation such as the 1650 MW Benban #PV Park in Egypt, the 580 MW Noor Ouarzazate Concentrated Solar Power (#CSP) Plant in Morocco and the 35 MW Menengai #Geothermal Power Station in Kenya.

In conclusion, Mr Chabchoub underlined that #EnergyEfficiency is not merely a question of financing but more a matter of political will and policy execution. In other words, the money is there but the capability to put it to good use still leaves a lot to be desired.