DEG: USD 29.5 million for investment in renewable energy

Stake in “Alcazar Energy Partners II” fund (AEP II)

The rise in demand for energy is particularly challenging for many developing and emerging-market countries. The expansion of green power generation is essential to achieve a sustainable supply. It is for this reason that DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is investing USD 29.5 million in the first close of the “Alcazar Energy Partners II” fund managed by Alcazar Energy Partners (Alcazar), a developer of renewable energy projects. The fund is aiming for a total volume of USD 500 million.

Green energy for around one million households

AEP II is intended to realise green energy projects in countries such as Georgia, Uzbekistan or Egypt. In total, it is projected to add two GW of green power generation capacity, enough to supply around one million households per year. The agreement has now been signed at the COP27 Climate Change Conference in Egypt. In addition to DEG, other development finance institutions such as Proparco from France and the Dutch development bank FMO are investing in the fund.

Agreement signed during COP27

“Building and expanding green infrastructure in emerging and developing countries is important to enable sustainable development and contribute to achieving global climate goals. We at DEG are convinced of this. In cooperation with our customer Alcazar Energy Partners – an experienced and proven player – we are therefore committed to realising further renewable energy projects,” said Monika Beck, member of the Management Board at DEG.

Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy, commented: “AEP II is privileged to have the confidence of an outstanding group of public and private institutions to invest in and develop renewable energy projects. This way, we can build sustainable infrastructure where it is needed most.”

DEG had previously provided Alcazar with a loan of EUR 18 million in 2016 to enable it to develop and commission a wind farm in Jordan.

As part of its mandate as a development finance institution, DEG has been committed for years to improving the energy supply in its partner countries and making it sustainable. DEG’s portfolio for renewable energy projects currently has a volume of about one billion euros.

The development impacts of the companies it co-finances are an important control instrument for DEG. These impacts are measured using the DERa (Development Effectiveness Rating), which is based on the UN’s Sustainable Development Goals (SDGs).

An analysis of the portfolio in 2021 shows, among other things, that the energy suppliers co-financed by DEG generate around 42 TWh of electricity from renewable sources each year, supplying more than 38 million people at present. This also saves 16 million tonnes of CO2 emissions.

Our solutions for Infrastructure & Energy