- The MOU provides a framework for ATIDI to support RELP’s development of the Catalytic Floor Price Guarantee (CFPG), a first-of-its-kind instrument designed to mitigate market price risk for renewable energy projects in Africa.
- The CFPG will ensure energy players trading in regional power pools can secure the minimum revenue needed to service debt thus improving bankability and unlocking investments.
- The partnership demonstrates collaboration and innovation in designing risk-sharing mechanisms that enable sustainable energy financing in Africa.
Nairobi, 27 May 2025 – The African Trade & Investment Development Insurance (ATIDI) and the Global Renewable Mass Adoption Program ASBL (RELP) have signed a Memorandum of Understanding (MOU) to unlock investments in renewable energy projects across Africa. This partnership brings together ATIDI, a leading multilateral insurer, and RELP, a non-profit NGO committed to accelerating clean energy deployment in emerging markets and developing economies (EMDEs).
While traditional risk mitigation tools have helped renewable energy projects address political, credit, and liquidity risks, a gap remains in managing market risk, specifically the risk that Independent Power Producers (IPPs) that are looking to sell the electricity generated by their projects into regional power pools may not generate sufficient revenue from electricity sales to service their debt.
To address this challenge, RELP, with support from the African Development Bank (AfDB), is leading a feasibility study to design the Catalytic Floor Price Guarantee (CFPG). This innovative instrument – which will initially target IPPs active in the Southern African Power Pool (SAPP) – will establish a minimum revenue floor for IPPs, helping reduce lenders’ exposure to market volatility and making clean energy projects more attractive to investors.
Through this collaboration, ATIDI and RELP aim to catalyze investments in renewable energy infrastructure by supporting de-risking solutions such as the CFPG. The partnership aligns with both organizations’ shared mission to accelerate clean energy adoption in EMDEs. While the MOU is non-binding, it sets a foundation for operational cooperation and the potential establishment of a formal partnership agreement upon conclusion of the feasibility study.
Quote from Manuel Moses, CEO, ATIDI
“This partnership aligns with ATIDI’s mission to turn African risk into opportunity. Through this MoU with RELP, we are advancing innovative solutions that unlock private sector investment in Africa’s renewable energy sector, especially for merchant market-based projects that may face challenges accessing capital due to perceived risks. By combining ATIDI’s political and credit risk expertise with RELP’s clean energy focus, we are better positioned to support independent power producers and scale impactful projects in Africa’s energy transition. The MoU is yet another demonstration of the critical role of collaboration in addressing Africa’s development challenges, fostering shared solutions and sustainable growth across the continent.”
Quote from Sebastian Kind, Founder and CEO, RELP
“Signing this MOU with ATIDI is an exciting step in accelerating clean energy deployment in Africa. As RELP leads the development of the Catalytic Floor Price Guarantee, an innovative, first-of-its-kind instrument, this partnership is crucial for mitigating market risk and improving bankability for renewable energy IPPs. Together, we are laying the foundation to unlock significant investment and accelerate the energy transition across the continent”.
Quote from Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulations Department, AfDB
“The African Development Bank is very supportive of this initiative as an important step towards developing the SAPP market. Establishing a Catalytic Floor Price Guarantee for the SAPP competitive market is a forward-looking measure that will foster greater market confidence, improve bankability of power projects, and drive sustainable growth across the Southern Africa region. The initiative aligns with the African Development Bank’s “Light Up and Power Africa” strategic priority, as well as with Mission 300, to achieve universal electrification by 2030 across Africa.
About ATIDI
ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD88 billion worth of investments and cross border trade into Africa. For over a decade, ATIDI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s, and in 2019, ATIDI obtained an A3/Stable rating from Moody’s, which has now been upgraded to A2/Positive.
