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Impact of renewable energy for Finnfund

We measured how renewable energy investments generate employment while mitigating climate change

The Finnish development institute, Finnfund, invests in renewable energy and other development projects around the globe. Together with the African Finance Corporation (AFC), a multilateral development finance institution, Finnfund invested in a wind farm company on the small-island nation of Cape Verde.

Finnfund and AFC asked Steward Redqueen to help them measure the socio-economic and environmental impacts of their investments in renewable energy in Cape Verde.

We measured how introducing renewable energy displaced electricity generated by fossil fuels and led to a more reliable energy supply by reducing power outages. By bringing together data from the wind farm company itself, macro-economic statistics, and data on the energy sector in Cape Verde, we built a model that traced the impact of renewable energy investments through two pathways: lower average energy costs and fewer outages.

The results allow Finnfund and AFC to demonstrate that investing in renewable energy – less expensive than existing diesel power – not only drives down the cost of supplying electricity, but also lessens reliance on imported fossil fuels and reduces greenhouse gas emissions.