The International Finance Corporation (IFC) would increase its lending to the renewable energy sector globally by three times the 2005 to 2007 levels over the next three years, IFC principal investment officer in South Africa Stephan Vermaak said on Wednesday.

Speaking at the Cogeneration World Africa 2009 conference, in Sandton, he said that the corporation was aiming to invest about $500-million a year on renewable energy projects by 2011.

The IFC has decided to "strongly support" renewable energies and to promote less carbon intensive fuels projects. It would finance coal and oil-based projects only where there were no other alternatives, he noted.

Africa was the IFC's regional priority, with the corporation setting investment in climate reform and proactive project development of large infrastructure and extractive projects as two of its biggest objectives.

The corporation, which is part of the World Bank group, could provide debt and equity, as well as advisory services to project developers.

Vermaak noted that the IFC was in a good position to support the development of renewable energy in Africa, as it was able to influence and advise on the regulatory environment, able to directly invest in projects and able to making financing available through local financial institutions.