In November 2023, OeEB provided USD 4 million, alongside four other investors including two private investors, to Alcazar Energy Partners II ("AEP II"), thereby contributing to the promotion of renewable energy in Eastern Europe, North Africa and Central Asia.

Project name Alcazar Energy Partners II ("AEP II")
Region Supra-regional
Sector Energy / Resource Efficiency / Infrastructure
Service Equity Participation
OeEB project volume USD 4 million
International climate finance according to UNFCCC Yes
Additionality Financial additionality
Fund domicile Luxembourg
Project partners i.a. DEG, Proparco, FMO, SIFEM, EBRD, EIB, IFC, AIIB

The Middle East and North Africa, as well as Eastern Europe, Central Asia and Turkey have experienced rapid population growth over the past 15 years. The resulting increased energy demand in these regions is exacerbated by the looming energy gap due to the phase-out of coal-based power generation. The expansion of renewable energy through funds such as AEP II, which also makes an important contribution to the liberalization of the electricity markets, can provide relief.

Alcazar Energy Partners II is a renewable energy fund (Luxembourg) from Alcazar Energy that invests in renewable energy projects in the MENAT and EECA regions. Alcazar Energy Partners I, founded in 2014, already invested in solar PV and wind projects. AEP II was founded as a successor with the vision of contributing to improved economic, environmental and social conditions through carefully designed renewable energy projects in selected emerging markets. By combining the synergies of DEG, Proparco, FMO, SIFEM, EBRD, EIB, IFC, AIIB, OeEB and other investors the commitments of AEP II amounts to USD 404 million to date.

The fund's focus lies on investments in the renewable energy sector, in particular onshore wind and solar PV projects. These measures are expected to supply more than 235,000 households with electricity every year, create around 7,100 construction jobs and save more than 2.1 million tons of CO2 emissions. The project makes a primary contribution to SDG 7 “Affordable and clean energy” and SDG 13 “Climate action” as well as SDG 8 “Decent work and economic growth”. A key goal of the fund is to avoid and reduce CO2 emissions. The planned investment by OeEB fits the strategic focus (renewable energies and energy efficiency) and is 100% climate-creditable. The fund team's extensive network with local renewable energy companies emphasizes the investment’s connection to Austria.