Energy Solutions

Regional Liquidity Support Facility (RLSF)

RLSF is a guarantee instrument provided by ATIDI to renewable energy Independent Power Producers (IPPs) that sell the electricity generated by their projects to state-owned power utilities.

RLSF was created to help tackle climate change and attract investments by supporting renewable energy projects in ATIDI ’s member countries. RLSF supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW by protecting the IPPs against the risk of delayed payments by public offtakers (larger projects can be considered on a case by case basis); in turn, improving project bankability and ensuring that more projects reach financial close.

RLSF was jointly launched by ATIDI and the KfW Development Bank in 2017, with the Norwegian Agency for Development Cooperation (Norad) committing additional funding towards the initiative in February 2022. IPPs located in ATIDI member countries that have signed an MoU with ATIDI  can benefit from RLSF cover.

Eligibility

To be eligible for the RLSF, projects must meet these criteria:

  • Power producer is located in an ATIDI member country, or in a non-member country in which ATIDI can develop necessary agreements with the government
  • Have an installed capacity of up to 100 MW; exceptional cases can be considered
  • Use a supported technology: solar PV, hydro, onshore wind, geothermal, biomass, or cogeneration
  • Have sufficient support of the host government and the utility

Geographic Coverage

Government support is crucial to the success of this product. RLSF will operate in countries where ATIDI is confident that payment delays to the utility will be resolved in good time. This includes:

  • Selected ATIDI member countries where ATIDI has developed a working relationship with both the central government and the off-taker. ATIDI has preferred-creditor status in its member countries, where ATIDI and the governments have contractual agreements and resolution processes
  • Selected non-member countries, in which ATIDI can develop a similar relationship.
  • To date, the following countries have signed the RLSF MoU Benin, Burundi, Cote d’Ivoire, Ghana, Kenya, Madagascar, Malawi, Togo, Uganda and Zambia