The generation division of Octopus Energy has partnered with Pembani Remgro Infrastructure Managers, a South African company, to introduce the Octopus Energy Power Africa Fund (OEPA), a significant new initiative aimed at accelerating the adoption of renewable energy in sub-Saharan Africa.
A first close of $60 million is the fund’s goal within the next 12 months, and it has already obtained a cornerstone investment from Octopus Energy (amount undisclosed). The fund was announced in June. It aims to generate $250 million over the course of the following three years to fund renewable energy solutions that meet Africa’s increasing need for dependable and sustainable power.
Electric vehicle (EV) charging infrastructure, battery storage systems, rooftop solar, and power grid upgrades are among the technologies that the OEPA fund will prioritize funding. According to Octopus Electricity, these initiatives will increase access to reasonably priced, environmentally friendly electricity in underserved areas while utilizing Africa’s “huge clean energy potential.”
According to the firm, “Africa’s energy market is one of the fastest-growing globally, driven by unmatched levels of sunshine and wind.” According to the International Renewable Energy Agency (IRENA), the continent has 39% of the world’s potential for renewable energy, although only 2% of global clean energy investment is directed there, according to the International Energy Agency (IEA).
The OEPA fund seeks to close this stark gap by directing funding toward inclusive, scalable, and significant energy solutions.
The initiative also builds on Octopus Energy’s recent investment in MOPO, a UK-based clean tech company providing solar-powered batteries on a pay-per-use basis. These portable battery units are already helping power homes and small businesses in remote areas of sub-Saharan Africa, offering a glimpse into how innovative financing and technology can disrupt energy poverty.
A crucial partner in locating and overseeing projects across the continent will be Pembani Remgro Infrastructure Managers, which offers local investment expertise and firsthand knowledge.
The OEPA fund’s establishment is a clear indication to international investors that Africa’s clean energy future is not only important but also profitable. In the face of climate change, unstable infrastructure, and growing electricity consumption, programs like OEPA may be a game-changer for how Africa finances its energy transformation.
