Consideration of funding proposals – Addendum X Funding proposal package for FP178

The Desert to Power G5 Sahel Facility is a large-scale program requesting US$ 150 million from the Green Climate Fund (GCF) to leverage a total of US$ 966.7 million in financing. The initiative aims to add 500 MW of solar generation capacity and 239 MWh of utility-scale storage across five G5 Sahel countries to reduce greenhouse gas emissions by 14.4 million tCO2equ over its lifetime. The program is structured into three components: grid investments to de-risk solar Independent Power Producers (IPPs), incremental finance for solar power generation, and technical assistance to improve the regulatory and institutional environment. The African Development Bank (AfDB) serves as the Accredited Entity, coordinating with national governments and private sector stakeholders to address technical, financial, and legal barriers to renewable energy adoption.

• The program aims to add over 500 MW of solar energy generation capacity and 239 MWh of utility-scale storage across the G5 Sahel countries, with an estimated lifetime mitigation impact of 14.4 million tCO2equ.
• The total financing for the facility is US$ 966.7 million, consisting of US$ 150 million from the GCF and US$ 816.7 million in co-financing from the AfDB and the private sector.
• The GCF funding is distributed across several instruments: US$ 82 million in loans, US$ 40 million in reimbursable grants, US$ 20 million in guarantees, and US$ 8 million in grants.
• The program targets direct benefits for 3.5 million people, with 1.75 million being women, and expects to create 1,250 jobs during construction and 450 permanent jobs.
• Component 1 focuses on grid investments, including ancillary equipment for solar integration and the construction of smart grids in areas where renewable energy penetration exceeds 30%.
• Component 2 provides private sector loans and Partial Risk Guarantees (PRGs) to attract solar IPPs and mitigate the risk of government or utility failure to meet Power Purchase Agreement (PPA) obligations.
• Component 3 provides technical assistance to build the capacity of institutional stakeholders and revise regulatory texts based on the Electricity Regulatory Index to attract private investment.
• The program identifies significant gender-based inequalities in the region, where women are often excluded from decision-making and have limited access to land, credit, and technical training in the energy sector.
• The Gender Action Plan includes specific targets such as ensuring 50% of trainees in technical assistance are women and establishing national gender-responsive energy policies in each of the five countries.
• The project is classified as Category A (High Risk) due to potential cumulative negative environmental and social impacts from grid and solar plant construction, including land acquisition and involuntary resettlement.
• The Independent Technical Advisory Panel (TAP) rated the impact potential, paradigm shift potential, sustainable development potential, and needs of the recipient as 'High'.
• The TAP recommended a covenant that no renewable power project dedicated to the production of green hydrogen for export can be co-financed by the GCF contribution to the program.

APA

Green Climate Fund (2021). Consideration of funding proposals – Addendum X Funding proposal package for FP178. https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add10.pdf

Chicago

Green Climate Fund. Consideration of funding proposals – Addendum X Funding proposal package for FP178. 2021. https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add10.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals – Addendum X Funding proposal package for FP178 |date=14 September 2021 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add10.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2021consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals – Addendum X Funding proposal package for FP178}}, institution = {Green Climate Fund}, year = {2021}, month = sep, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add10.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }