Camco Clean Energy (Camco) has secured funding from Convergence, the global network for blended finance, and the Department of Foreign Affairs and Trade of Australia (DFAT) to support TIDES, its new blended finance vehicle aiming to mobilise private finance for clean energy development in the Pacific.
Many Pacific island nations have set ambitious renewable energy targets in the run up to COP26 but are still heavily reliant on imported diesel for energy production and have among the highest costs of electricity in the world. New financing solutions are needed to attract private capital for renewable energy projects and complement grant funding in the region.
TIDES is a USD 50 million structured debt and equity fund that seeks to partner with local developers in the Pacific and crowd in private finance to fund a portfolio of multiple renewable energy projects by each developer. The TIDES vehicle also has a strong gender equality angle, requiring investees to target gender-focused metrics, such as number of jobs created for women, percentage of women in senior positions and percentage of female-owned businesses supported.
The funding from Convergence and DFAT (amount undisclosed for commercial reasons) is designed to provide early-stage support for TIDES and support key activities that will help Camco (the fund manager) validate its commercial offering to investors and developers in preparation for a fundraise in early 2022.
Geoff Sinclair, Managing Director at Camco, said: “Camco is looking forward to applying our experience and expertise in financing sustainable development renewable energy finance to help solve the Pacific islands’ many energy challenges, including the high cost of electricity and reliance on imported fossil fuels.
“Convergence’s design funding will be instrumental in helping Camco launch TIDES and establish an on-the-ground presence in the Pacific, which will enable us to work closely with local developers and provide the necessary flexible financing to build the region’s clean energy sector and unlock its economic potential.”
TIDES is one of four blended finance solutions to be awarded funding from Convergence and DFAT through its latest round of grants. Together, the funds are seeking to mobilise more than USD 300 million for renewable energy, sustainable agriculture, and sustainable forestry across Southeast Asia and the Pacific. Find out more here.