The board of directors of the African Development Bank Group has approved an equity investment of up to $25 million in ARCH Africa Renewable Power Fund (ARPF), a $250 million private equity fund for renewable energy projects across sub-Saharan Africa.

Adding approximately 533MW of installed energy generation capacity from renewable sources in the region, ARPF will grant equity for the development and construction of 10 to 15 greenfield renewable energy projects in sub-Saharan Africa.

ARPF projects will focus on mature technologies including wind, solar PV, small to medium hydro, geothermal and biomass. Combined it will provide base load and peak load power in underserved markets.

These would cover grid-connected independent power producers (IPPs), and decentralised energy projects (commercial and industrial solar, mini-grids and solar home systems companies).