ARC Power gets $10m from Triodos, OikoCredit for clean energy push

STARTUP VENTURE CAPITALNovember 17, 2023 at 1:28 PM UTC

ARC Power, a prominent provider of sustainable and clean energy solutions, is set to advance its mission of delivering grid-connected clean energy access to over 100,000 people in Rwanda's initial phase. This translates to more than 30,000 households gaining power access for the first time, thanks to strategic funding from Triodos Investment Management (Triodos IM) and Oikocredit.

In alignment with Rwanda's commitment to expanding electricity access and decreasing its carbon footprint to meet the 2024 targets, ARC Power aims to make energy accessible and affordable for all Rwandans while enhancing the country's clean energy mix. The $10 million investment, facilitated by Oikocredit and Triodos IM through the Triodos Emerging Markets Renewable Energy Fund and Triodos Groenfonds, will play a pivotal role in realizing this objective.

This investment will be utilized to broaden ARC Power's operations, executing grid expansion and implementing grid-tied distributed renewable energy generation assets throughout the nation. This initiative falls within the scope of the recently established Strategic Power Partnership between ARC Power and the Government of Rwanda.

Key Takeaways

As African economies grow, the demand for energy by companies, households, and industries increases by the day. This comes with challenges of climate change and energy depletion, however, many innovators and investors believe renewable energy can help Africa counter these challenges. Financiers mostly are skeptical about funding ventures in the renewable energy space, which has hindered growth in the sector, but ARC’s successful raise—as well as recent rounds by Sun King and AMEA particularly—suggests the perception towards the renewable energy opportunity in Africa could be changing.

ARC Power

Triodos Investment Management

OikoCredit

Clean Energy

Rwanda

Venture Funding