Evaluation of the AfDB’s Support for Renewable Energy (2012-2021)

Independent Development Evaluation conducted an evaluation of the assistance for renewable energy (RE) by the African Development Bank (AfDB or “the Bank”) over the period 2012- 2021. During this period, the Bank allocated around 5 billion USD to RE, through 156 interventions in Regional Member Countries (RMCs).

The evaluation assessed the AfDB’s support for RE generation in the power sector, specifically for geothermal, hydropower, solar power, and wind power. It focused on both utility-grid-scale RE and smaller-scale, decentralized energy access solutions.  It assessed the Bank’s support in terms of relevance, coherence, effectiveness, efficiency and sustainability, and drew lessons and recommendations to inform the design and implementation of future AfDB renewable energy interventions.

Overall, most of the Bank's support for RE was rated successful, but important concerns remain. At the corporate level, the Bank had adapted well to international trends in RE, and in the RMCs, complementarities between the Bank’s and other development partners’ RE interventions were deemed effective. The Bank’s lending support had increased RE-based power generation capacity, although the Bank’s contribution to shaping the RE policy and institutional framework in member countries was limited. There were mixed views on the of the Bank's role as a knowledge broker, advisor, and convener. The financial distress of power utilities was found to have a negative impact on the sustainability of RE interventions. 

Key lessons were drawn around action plans to complement strategies, supportive infrastructure, prioritization and risk-sharing, and RE integration to the grid. The evaluation recommends that the Bank approaches RE at the corporate, regional and country level to better align objectives; enhance the quality at entry of RE interventions; and expand the use of blended finance instruments to scale up renewable energy investments in Regional Member Countries.

Task Manager: Joseph Mouanda, Chief Evaluation Officer, IDEV.1