• The strategic partnership, forged through a memorandum of understanding signed in late November 2021, officially launches in Johannesburg on the 5th of May 2022 and paves the way for the two companies to work together on commercial initiatives in the African region that contribute to energy optimization, decarbonization and net-zero pathways for African cities, business and industry.

5 May 2022: Inspired Evolution, a leading specialized African investment advisory business dedicated to bespoke climate-driven investment themes: clean energy infrastructure; energy access; and energy and resource efficiency – and the value chains that support them, and Schneider Electric, the global leader in the digital transformation of energy management and automation, have agreed to collaborate on various energy-related solutions for the African region. The agreement provides for the exploration of a multi-faceted collaboration across a number of business opportunities, including Energy-as-a-Service (EaaS) solutions as well as energy efficiency, microgrid and decarbonization.

The partnership will explore these opportunities across identified priority countries, industries, and market segments, through a combination of Schneider Electric’s technical expertise and EaaS solutions with offices across Africa, and Inspired Evolution’s deep networks, business model and financing expertise.

Schneider Electric is well-positioned to address these opportunities, given its leading position in EaaS with global presence, cross industry experience, and full-suite best-in-class technology and service offerings.

Inspired Evolution, as a specialized climate mitigation and energy transition investment advisory business with a broad African footprint, offers over 15 years of proven track record in clean energy, energy access and energy efficiency investments, with award-winning ESG impact performance.

The collaborative partnership will be officially launched by Christopher Clarke, Managing Partner at Inspired Evolution, Steven Faure, Partner and EaaS Lead at Inspired Evolution, and Devan Pillay, Cluster President Anglophone Africa at Schneider Electric.

Christopher Clarke said, “This joint venture is an important and strategic development in our climate finance strategy and approach that includes forging strong and meaningful partnerships with global players like Schneider Electric to help us to decarbonize, decentralize and digitize innovative and affordable clean energy solutions, financed through our Evolution funds, in contribution to transforming Africa’s energy landscape.”

As part of Schneider Electric’s promise to reduce CO2 emissions and help organizations around the world shift to become carbon positive, the company proactively works with partners to create new business models that will promote a more resilient and sustainable future.

“Partnerships are fundamental to the goal of achieving a greener, more sustainable world, and Inspired evolution have pioneered new approaches to sustainable business,” said Devan Pillay. “We believe that, by combining our areas of expertise, we will be able to make significant progress in the space of clean energy and energy efficiency and scale up these ideas to benefit organizations and societies globally.”

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About Schneider Electric: Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On. Our mission is to be your digital partner for Sustainability and Efficiency. We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries. We are the most local of global companies. We are advocates of open standards and partnership ecosystems that are passionate about our shared Meaningful Purpose, Inclusive and Empowered values. For more information, visit: www.se.com/za.

About Inspired Evolution and Evolution Funds: Inspired Evolution, investment advisor to Evolution I and Evolution II Funds, and currently raising Evolution III Fund, is a specialised clean energy infrastructure and resource efficiency investment advisory platform with offices in Cape Town, London, Nairobi, Abidjan and Mauritius. Inspired Evolution has been involved in financing the development and operations of more than 2 GW of renewable energy infrastructure generation projects and multiple growth equity investments across Sub-Saharan Africa. Evolution II Fund’s investors include the African Development Bank, CDC Group, Cyane Holdings Ltd, European Investment Bank, the Dutch Development Bank FMO, the Finnish Fund for Industrial Cooperation, the European Initiative on Clean, Renewable Energy, Energy Efficiency and Climate Change related to Development SICAV, SIF – Compartment Global Renewable Energy and Energy Efficiency Fund, Swedfund International AG, KLP Norfund Investments AS, Morgan Stanley Alternative Investment Partners, Swiss Investment Fund for Emerging Markets managed by Obviam and a US healthcare system. Evolution III Fund is expected to comprise the majority of its existing investors as well as new global and regional institutional investors, endowments and family offices. For more information, visit: www.inspiredevolution.co.za.

28 April 2022: Energy Catalyst, a UK government-funded programme, has announced its next wave of promising clean energy innovations.

This is Round 8 of the funding programme, designed to accelerate access to sustainable energy in sub-Saharan Africa and Asia, with all innovations geared to tackle climate change.

This latest round of awards is part of Energy Catalyst’s efforts to support developing economies by increasing access to clean reliable power and transition from fossil fuels through the commercialisation of new clean energy technologies and business models.

This latest round of funding winners represents market-focused technologies across a range of innovations including next-generation storage batteries, state-of-the-art ventilation and air-cooling system for schools, healthcare facilities and offices, to use of AI and machine learning, and a mobile mini-grid that can be transported from village to village to bring clean energy to remote communities.

Round 8 of Energy Catalyst is targeting innovations that address the energy ‘trilemma’: clean energy, affordable energy and accessible energy, to transform the energy landscape while also addressing gender equality and social inclusion in sub-Saharan Africa and Asia.

The programme ambitions are in line with the gathering momentum around energy access, evidenced during COP26 with a sharpened focus around the need for an inclusive global clean energy transition, in line with UN Sustainable Development Goal 7.

Innovate UK, Innovation Lead – Energy, Alice Goodbrook said: “I am really encouraged by the overwhelming interest that the programme has continued to receive, and the high standard of applicants in this latest round of funding. The programme’s progress to date serves to underline the vital importance of this type of funding to help clean energy innovators bridge the gap to commercialisation.

“The impact of Energy Catalyst supported companies is already being felt in nearly 30 countries around the world, furthering access to clean energy and improving the lives of people in developing economies. I am excited to see how the Round 8 companies can take this impact even further.”

Energy Catalyst is an Innovate UK programme with co-funding from the Foreign, Commonwealth and Development Office, Global Challenges Research Fund, the Department of Business, Energy and Industrial Strategy and the Engineering and Physical Sciences Research Council.

The Carbon Trust leads the accelerator programme for Energy Catalyst companies with support from Energy 4 Impact, Power for All, Intellecap and Open Capital Advisors.

Launched in 2014, Energy Catalyst has supported over 566 organisations, including 119 international partners. The programme has provided £60m of funding for energy access technologies and business models and improved energy access in 36 countries.

Details of the Energy Catalyst Round 8 projects:

• Smart Villages – Innovative mobile mini-grid-scale service and storage for rapid scaling of rural energy access in Kenya;
• InvestinGreen.Energy – Renewable Energy Independent Power Producer innovating advanced battery expansion for scalable, sustainable mini-grids;
• Solveteq – Sustainable alternative to informal recycling of Lead-acid batteries;
• Queen Mary University of London – Sea Wave Energy powered micro-grid for remote islands and rural coasts;
• Pilio – Establishing an insetting scheme in Pakistan to provide affordable renewable energy to communities of rural cotton pickers in extreme poverty with the support of fashion brands;
• Nova Innovation – Feasibility of Larantuka and Indonesian Tidal Energy (FLITE);
• Green Fuels Research – PoWGEN – Pangasius and other Waste for Green Energy Needs;
• Aquatera – IESSLA Integrated Energy Systems Site seLection Assessment for Accelerated Business and Project Development in Off-Grid Islands;
• Blockchain Climate Policy Studies Ltd – Blockchain-based off-grid energy trading system to enhance the sustainability of less affluent communities in Indonesia;
• Free running buildings – FREECOOL+ – Adapting passive ventilation and zero-energy cooling for sub-Saharan Africa;
• Integrals Power – NexGen Battery (NGB);
• Aceon – Development of innovative off-grid energy storage for sub-Saharan Africa using portable and affordable Sodium (Na)-ion battery system;
• Verditek – Development of robust, ultra-lightweight portable solar energy system – providing scalable, renewable power (50w-1.5kw) to off-grid communities in Zimbabwe and SSA;
• Technovative Solutions – Implementation of photovoltaics through an innovative mini-grid expansion model for rural African & Asian communities – (IMPHORAA);
• enee.io – Increasing access to energy through improved battery life and performance;
• Azuri Technologies – Unplugging the generator: solar power tackling intermittent grid in Nigeria.

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About Energy Catalyst: Energy Catalyst, an Innovate UK programme, helps early- to late-stage innovators develop market-based technologies and business models that accelerate access to clean, modern and affordable energy in Africa and Asia. For more information, visit: https://energycatalyst.ukri.org.

About Innovate UK: Innovate UK is part of UK Research and Innovation, a non-departmental public body funded by a grant-in-aid from the UK government.

28 April 2022: Finergreen, a leading transaction boutique specialized in renewable energies and energy transition, demonstrates its unwavering commitment to the biogas industry in France and its positioning as the leading financial advisor for the sector with the recent closing of 4 landmark transactions for over €75m in total. These transactions were carried out on behalf of both industrial and agricultural clients and range from senior project finance to corporate level hard equity. Biogas projects shape our rural territories thanks the unyielding implication of farmers and the cooperation of local private and public stakeholders. In an increasingly complex and challenging environment, the successful closings of those transactions come as a reward of our longstanding commitment alongside biogas project developers. We have been committed to help project developers since 2013 and look forward to further supporting all industry players in France but increasingly so across Europe.

In November 2021, Finergreen advised Waga Energy and Meridiam on the successful closing of the first non-recourse project finance related to a large asset portfolio in France, using the proprietary Waga Box technology, designed to recover gas from landfills. The senior package was provided by BNP Paribas and Banque Populaire Grand Ouest.

In December 2021, Finergreen advised CVE in its €30m equity fundraising with Swen Capital Partners (Project CRONOS). With the support of this new shareholder, CVE Biogaz aims to reach an installed capacity of 1,5 TWh/year in France (c. 10% market share) by 2030. This partnership has already proven successful following CVE Biogaz’s recent acquisition of Ecovalim, a local integrated player of the biowaste collection and recovery industry.

In February 2022, Finergreen successfully implemented a senior debt facility to finance the construction of a 200 Nm3/h biomethane unit owned by Eiffel Gaz Vert and a group of local farmers (Project METHA VAL DE SAÔNE). The debt was provided by BNP Paribas and Banque Populaire Bourgogne-Franche-Comté.

In March 2022, Finergreen advised the 72 farmers behind the Oudon Biogaz project in securing (i)  equity co-investors, (ii) a junior facility through crowdfunding, and (iii) a senior debt facility, for the construction of the project, for a total CAPEX of €25m. Located at the heart of Pays de Craon in Mayenne, Oudon Biogaz is one of the most important agricultural biogas projects in France with a production capacity of 55 GWh/year and a yearly recovery of over 140 000 tons of organic waste. 

Equity co-investment was subscribed by Ter’Green and TEM53 who joined forces as minority shareholders with the 72 farmers and feedstock suppliers – who keep a majority ownership. Junior crowdfunding was secured via the crowdfunding platform Lendosphere. Senior financing was closed with a bank consortium led by BPGO/Helia Conseil and also includes Caisse d’Epargne Pays de la Loire and BNP Paribas.

Matthieu Kuzdzal, Vice President at Finergreen comments: “Our experience and understanding of the market specificities have been key in allowing us to provide tailor-made solutions to each of our clients towards a successful outcome. We are currently leading other transactions for major industry players in France and Spain and look forward to further supporting biogas players in an increasingly uncertain economic environment. Public support for the biogas industry is ramping up across Europe and we are hopeful that this trend will prevail in the long run. In France, the organization of new tenders for an additional capacity of 1,6 TWh over the next 18 months sends a positive signal, although much remains to be done. Those tenders will complement the existing support scheme for small and medium size projects, which already benefit from long term feed-in-tariffs.”  

With nearly 10 years of experience, Finergreen stands out for its innovative and proactive approach. Passion, enthusiasm, and entrepreneurship define its commitment towards clients, supporting them from project inception to financial closing.

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About Finergreen: Finergreen is a financial advisory boutique specialized in energy transition and renewable energies. Founded in 2013, the company has already completed more than 150 transactions for a total of 3 billion euros. With 70 people based in 10 offices all over the world, the company provides Mergers & Acquisitions, Project Finance and Strategic Advisory services.

In 2021, the company was ranked #1 in Inframation international League Table, with 30 transactions executed in the renewable energy industry. For more information, visit: www.finergreen.com.

27 April 2022: Today, Sun King, the largest provider of solar energy products for off-grid homes in Africa and Asia, announced it has raised $260 million in Series D funding, led by BeyondNetZero, the climate investing venture of General Atlantic, a leading global growth equity firm, along with M&G Investments’ Catalyst team and Arch Emerging Markets Partners. Founded in 2007 as Greenlight Planet, the company recently rebranded as Sun King, the name under which its products have long been sold.

Sun King is leading a transformation in how electricity is provided across Africa and Asia, where 1.8 billion people still lack access to a reliable electrical grid. To date, Sun King has powered the lives of 82 million people across 40 countries.  The company’s solar home systems power lights, mobile phones, radios, and larger home appliances. Sun King systems are dramatically more affordable and sustainable than kerosene or new power lines, allowing customers to leapfrog electrical grids and fossil-fuel energy sources entirely.

Today, Sun King operates the world’s largest direct-to-consumer, pay-as-you-go (PAYG) solar distribution network, growing at a rate of 150,000 new clients per month across seven countries.  In Kenya, one in five people use Sun King today, with 18 million Kenyans having benefited over a decade of operations. In Nigeria, the company’s user base has tripled in the past year alone. While growing rapidly, the company has remained consistently profitable.

Sun King now accounts for 38% of total industry-wide PAYG solar revenue according to the latest data collected by GOGLA, the global association for the off-grid solar energy industry. As a result of Sun King’s growth, the company has eliminated 22 million tons of carbon dioxide emissions while saving consumers $4.4 billion in energy costs.

The $260 million financing includes $100 million in primary investment for Sun King’s continued expansion. Sun King’s founders retain voting control of the board. In addition to the company’s plans for continued geographical expansion, the funds will also be allocated towards product-line expansion, including larger solar systems equipped with AC-electricity inverters (capable of powering larger appliances like refrigerators) and new products such as mobile phones.

“This investment in Sun King marks an incredible inflection point for the global off-grid solar industry,” said T. Patrick Walsh, co-founder, and CEO of Sun King. “Over the last 15 years, we have delivered solar energy and light to over 82 million people, enabling kids to study for school, helping entrepreneurs run small businesses, and allowing families to power their lives, free from the danger and high cost of kerosene lanterns. This landmark investment allows us to continue scaling our technology, service, and financing capabilities so we can meet the needs of the next billion energy consumers.”

“Sun King is leading a global transformation in the way we provide electricity to consumers in Africa and Asia,” said Sun King co-founder Anish Thakkar. “It’s now dramatically more affordable to power a home with a solar system than to extend the electrical grid: for less than the cost of a single electrical pole, we can install an entire solar energy system in-home. This funding will further unlock our ability to scale this revolution to the 1.8 billion people who need these products today, and the next billion who will need them tomorrow.”

“BeyondNetZero is excited to back Sun King, an industry-leading company that offers consumers accessible and affordable solar products, supported by fair and sustainable business practices,” said Eli Aheto, Managing Director on the BeyondNetZero team at General Atlantic. “We look forward to partnering with the company and its leadership as they bring innovative and affordable off-grid solar products to new markets and continue to grow their meaningful contribution to the global net-zero transition.”

Ekta Partners acted as the lead financial advisor for this transaction. Goodwin Procter LLP provided legal counsel to Sun King, and Freshfields provided legal counsel to BeyondNetZero.

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About Sun King: Sun King is the world’s largest off-grid solar energy company, serving the 1.8 billion people across Africa and Asia who lack access to reliable electricity. Through innovative product design, affordable pay-as-you-go financing, and a grassroots field team of 15,000 agents providing installation and service, Sun King has powered the lives of over 82 million people.  Founded in 2007 as Greenlight Planet, Sun King sets the gold standard for off-grid solar technology as part of its mission: powering access to brighter lives. For more information, visit: www.sunking.com.

About BeyondNetZero: BeyondNetZero is the climate investing venture of General Atlantic, a leading global growth equity firm. BeyondNetZero invests in growth companies delivering innovative climate solutions that have the potential to meet and exceed net zero emissions targets, with a focus on decarbonization, energy efficiency, resource conservation and emissions management. This venture combines General Atlantic’s growth equity experience and global network with a team of experienced climate investors, advisors and industry executives who bring decades of experience in both addressing climate-focused problems and building pioneering growth companies. For more information, visit: https://beyond-net-zero.com.

About General Atlantic: General Atlantic is a leading global growth equity firm with more than four decades of experience providing capital and strategic support for over 445 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic currently has over $84 billion in assets under management inclusive of all products as of December 31, 2021, and more than 215 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, Singapore, and Stamford. For more information, visit: www.generalatlantic.com.

About M&G Investments: M&G Investments’ Catalyst strategy is investing up to £5 billion into innovative privately-owned global businesses working to create a more sustainable world. For over ninety years M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes, and vital infrastructure in the real economy.   Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure, and real estate. M&G Investments is part of M&G plc, a FTSE-100 listed company with over £370 billion of assets under management (as of 31 December 2021), and customers in the UK, Europe, the Americas, and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

27 April 2022: The Board of Directors of the African Development Bank has approved two loans amounting to $180 million to co-finance a major energy project that will extend electricity access to rural areas and reduce greenhouse gas emissions in Rwanda.

This follows the 26 May 2021 approval for $84.2 million from the resources of the African Development Fund (ADF), the concessional window of the Bank Group, for the same project.

Financing for the Transmission System Reinforcement and Last Mile Connectivity project comprises $140 million from the African Development Bank sovereign window and a $40 million co-financing from the Africa Growing Together Fund (AGTF), as well as resources from the ADF.

The project will entail the construction of over 1,000 km of medium voltage and 3,300 km of low voltage lines to boost last mile access. It will also build 137km of high voltage line and six substations required to strengthen the grid. Other features of the project include the installation or upgrading of more than 1,200 distribution transformers and related infrastructure.

The project will connect 77,470 households to the electricity network for the first time. It will also connect 75 schools, eight health centers and 65 administration centers, while enabling the evacuation of 125MW of clean energy from hydropower plants. It will create 455 permanent jobs and 760 part-time jobs, with 30% of these going to women.

“The rationale for the Bank’s intervention is to support the country’s pursuit of 100% access to electricity by 2024. the Project will contribute to enhancing the quality of life by facilitating improved education and health provision as well as promoting private sector growth, hence contributing to Rwanda’s social and economic transformation agenda which aims to transition Rwanda from a developing country to a middle-income country by 2035,” said Aissa Tour-Sarr, the African Development Bank’s Country Manager in Rwanda, during the approval of the project.

The Bank-financed grid access component of the project will target households in southern Rwanda, where connection rates are below 34%. The main cities targeted are Gisagara, Huye, Nyamagabe, Nyanza, Nyaruguru, and Ruhango.  The project will also strengthen the network in Nyarugege city, Nyamata, Kigali Hub, and other zones across the country where rising commercial activity has increased electricity demand.

Bank Vice President for Power, Energy, Climate & Green Growth, Dr. Kevin Kariuki, remarked: “The Bank is pleased to play an important role in actualizing Rwanda’s Transmission Reinforcement and Last Mile Connectivity Project, which will not only contribute to addressing the country’s energy poverty, including pursuit of universal access by 2024, but also aligns closely with the Bank’s High 5 priorities.  Moreover, the project exemplifies the transformational impact of effective coordination amongst development partners.”

The Transmission Reinforcement and Last Mile Connectivity project is a component of the $670 million multi-donor Rwanda Universal Energy Access program, which is being co-financed by the World Bank Group, OPEC Fund for International Development, Saudi Fund for Development, Agence française de développement, and the European Investment Bank.

The African Development Bank Group’s contribution, including last year’s approval funding resources of $84.2 million from the African Development Fund, the Bank Group’s concessional window, represents around 40% of the program’s costs.

The project aligns with two of the Bank’s High-5s – “Light Up and Power Africa” and “Improve the Quality of Life for the People of Africa.”

As of March 2022, the African Development Bank has financed over $1.4 billion worth of projects in Rwanda, of which $498 million has been directed towards energy project projects.

19 April 2022: The Konrad-Adenauer-Stiftung (KAS) and the Alliance for Rural Electrification (ARE) have formed a partnership to demonstrate the potential of decentralised renewable energy (DRE) to generate green jobs in the West African region.

According to the International Labour Organization, young men and women between the ages of 15 to 24 comprise 34% of the working-age population in Sub-Saharan Africa, with youth representing 10-20% of those unemployed. DRE can act as a prime catalyst for green job creation in Africa and beyond, creating direct green jobs in manufacturing, assembly, distribution & sales, operations & maintenance, as well as derived jobs in related sectors relying upon a stable source of electricity, such as rural agricultural industries and fisheries.

With increased support for the green recovery after the COVID-19 pandemic, especially towards long-term skills development programmes, the DRE sector can thus be a gamechanger, creating jobs for millions of people, especially in Sub-Saharan Africa. The creation of these new and enhanced jobs will boost GDP, support local socio-economic development, lighten the workload in various sectors such as agriculture, and contribute to long-term sustainability by fostering skills development across the workforce.

In this regard, the partners will team up to reinforce evidence based data of DRE to massively boost job creation at scale in West Africa. They will work together to identify the job creation potential of DRE in the region and disseminate the findings to key stakeholders, particularly policymakers and international funding partners.

David Lecoque, CEO of ARE underlined that: “We are thrilled to enter into this partnership with KAS focusing on DRE job creation in West Africa. As the least-cost electrification option for most missing connections, DRE provides rural and peri-urban communities with sustainable and clean electricity services while catalysing socio-economic development, local green job creation and effectively addressing climate change. By 2030, ARE strives to enable the private sector to catalyse the creation of more than 5 million green jobs.”

Anja Casper-Berretta, Head of Regional Program for Energy Security & Climate Change in Sub-Saharan Africa of KAS said that: “Climate change remains one of the biggest challenges of our time. At the same time, economic growth is a development priority for the African continent. KAS is therefore glad to partner with ARE in order to demonstrate how access to affordable and reliable clean energy as outlined in SDG-7 and sustainable economic growth can go hand in hand. In addition, the current global political situation has demonstrated that DRE and renewable energies are pivotal to energy security.“

13 April 2022: The Beyond the Grid Fund for Africa (BGFA) has signed its first agreement in Burkina Faso with Oolu Burkina Faso to support the scale-up of high-quality solar home systems for people living in rural areas of Burkina Faso and improve energy access in these areas.

The company will provide energy solutions and services, including various solar home systems and large standalone systems for residential, commercial and institutional customers in Burkina Faso. These solutions reduce greenhouse gas emissions, decrease indoor air pollution and increase the reliability of power supplies for customers in remote areas. The total value of the contract is EUR 2.5 million, with a total project budget of at least EUR 5 million.

“This first BGFA contract reinforces Sweden’s commitment to Burkina Faso and the importance of supporting the development of the country’s energy sector. Burkina Faso is beset by security problems and is experiencing difficult times. Over 60% of its young and dynamic population does not have access to electricity. The private sector plays an important role in helping the country achieve its ambitions, particularly with regard to access to sustainable energy. Mobilising financing through innovative mechanisms such as BGFA, will help to scale up affordable and sustainable energy solutions in the country,” commented Maria Sargren, Swedish Ambassador to Burkina Faso.

Oolu is a company that has been developing solar home systems for the African market since 2015 and is today active across six West African countries. The Burkina Faso subsidiary was established in 2018 and is the leading company in the country selling PAYGO-based renewable energy services. With the support of BGFA, Oolu will scale up its current business activities in Burkina Faso, aiming to establish over 28,000 additional subscriptions over a four-year period by providing solar home systems for lighting, mobile phone charging, TVs, fridges and freezers as well as power sources for commercial customers.

“We are thrilled to collaborate with BGFA to further scale up our business activities. In recent years, many communities in Burkina Faso have endured worsening economic, security and climate conditions. With the support from BGFA, we can improve people’s lives in these underserved communities by providing modern and renewable energy access at affordable rates, often for the very first time,” said Dan Rosa, Co-Founder and Chief Executive Officer at Oolu.

With the BGFA funding, Oolu will expand its operations across eight regions where it is already operating: le Centre, la Boucle du Mouhoun, les Cascades, les Hauts Bassins, le Sud Ouest, le Centre Est, le Centre Ouest and l’Est, as well as commence operations in four additional regions. It is estimated that the project will help to bring clean off-grid energy solutions and lighting equipment to over 27,600 households and over 560 businesses and institutions. In the long term this will enable a higher standard of education and create numerous new employment opportunities in the country.

“We are very pleased to announce our first project in Burkina Faso, which will support access to clean energy solutions in several regions across Burkina Faso and is estimated to benefit over 155,000 people,” commented Dennis Hamro-Drotz, Senior Programme Manager at Nefco.

The Beyond the Grid Fund for Africa opened its first funding round in September 2020, in Burkina Faso, Liberia and Zambia (BGFA1); it also opened two more funding rounds, in Mozambique (BGFA2) and Uganda (BGFA3), in spring 2021. The facility is currently concluding the first round of funding and, in addition to the initially announced contracted companies in Liberia and Zambia, further supported projects in Burkina Faso, Liberia and Zambia are expected to be announced during spring 2022.

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About BGFA: The Beyond the Grid Fund for Africa is a multi-donor facility established and managed by the Nordic Environment Finance Corporation (Nefco). Nefco is an international financial institution based in Helsinki, Finland, focusing on environmental and climate investments. BGFA is implemented in partnership with the Renewable Energy and Energy Efficiency Partnership (REEEP), an international multilateral partnership based in Vienna, Austria, working to accelerate market-based deployment of renewable energy and energy-efficiency solutions in developing countries.

The current EUR 107.6 million BGFA programme was established in 2019 on Sweden’s initiative through the Swedish International Development Cooperation Agency (Sida). Sweden contributes SEK 835 million (EUR 80 million) from the Swedish embassies in the target countries. It has since been developed by Nefco into a multi-donor programme. Denmark, through the Ministry of Foreign Affairs, joined the BGFA programme in December 2020 and is now providing DKK 117.5 million (EUR 15.8 million) to support the programme in Uganda. Power Africa, an initiative administered by USAID, is providing an in-kind technical assistance contribution worth USD 4.5 million (approx. EUR 4 million) over three years to help operationalise the initiative and develop a pipeline of commercially viable projects within the framework of BGFA. Germany, through its development bank KfW, has joined the BGFA country programme for Zambia with a focus on mini-grids, providing EUR 7.5 million.

13 April 2022: Easy Solar, a leading last mile distribution and asset financing company that sells solar systems, productive appliances & consumer electronics, has secured a USD 5 million senior secured debt facility to expand its reach across Sierra Leone. The funding was advanced in local currency by the Facility of Energy Inclusion’s Off-Grid Energy Access Fund (“FEI-OGEF”, managed by Lion’s Head Global Partners Asset Management (“Lion’s Head”) and with support from The Currency Exchange Fund (”TCX”), that provided the hedging instrument.

Easy Solar began operations in 2016, focusing on solar-powered lanterns and home systems for low income, rural customers without access to electricity. The facility will enable Easy Solar to continue to finance its core range of solar products and deepen penetration across rural communities in Sierra Leone.

In 2020, the company expanded its “Buy Now, Pay Later” model to finance a wider range of energy efficient appliances and consumer electronics, which includes smartphones, cookstoves and appliances such as TVs, fans and freezers. Through its extended distribution network and innovative partnerships (local banks, government-backed payroll deduction for civil servants, and mini-grid companies), Easy Solar addresses the needs of both off-grid and on-grid customers looking for reliable, life-improving products. Since 2021, Easy Solar has also been catering to the needs of larger residential, commercial and industrial customers through its “Power Solutions” business unit and is on track to have installed over 1.5MW of power by the end of 2022.

According to Alexandre Tourre, co-founder and CEO of Easy Solar, “Despite the challenges of a global pandemic, Easy Solar grew by more than 300% between 2019 and 2021, demonstrating the scale of the demand for energy access, reliable backup power and affordable consumer electronics in West Africa. Access to affordable local currency debt financing has been one of the main constraints to accelerating our expansion in our core markets and beyond. The partnership with FEI-OGEF will allow us to strengthen and simplify our balance sheet while bringing access to energy to hundreds of thousands of people in Sierra Leone.”

FEI-OGEF was set up by the African Development Bank (“AfDB”) as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI-OGEF received equity funding from KfW, the Nordic Development Fund (“NDF”) and All On. The AfDB also invested on behalf of the Global Environment Facility and the European Commission.

Commenting on the investment, Alix Graham, Fund Manager for FEI-OGEF at Lion’s Head said, “I am excited to see and support the continued growth of the Off-Grid sector in Sierra Leone. With access to energy in Sierra Leone sitting at around 23% of the population, it is imperative that companies like Easy Solar can scale. We were impressed by Easy Solar’s strong management team that has successfully steered and grown the company over the past five years, and we look forward to seeing continued growth. To help support their business, we were able to structure a facility that provides access to local currency funding, which will, in turn, help them manage their foreign currency risk and ultimately provide affordable products, at scale, to reach more off-grid households in Sierra Leone.“

Power Africa provided legal support and technical advice to Easy Solar for the debt transaction with FEI-OGEF, assisting with negotiations and the review of guarantee documents through a team from Norton Rose Fulbright.

Ruurd Brouwer, CEO of TCX: “We are delighted to have supported this debt transaction in local currency for Easy Solar in Sierra Leone together with our long-standing partner Lion’s Head. TCX is committed to support the off-grid energy sector by de-risking local currency transactions for our clients and their investees. Through this facility, Easy Solar can expand its business in Sierra Leone and provide more households with access to energy without having to bear foreign currency risk.”

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About Easy Solar: Founded in 2016, Easy Solar is a last-mile distribution company and asset financier making high quality energy products affordable & accessible. As of March 2022, the company powers the lives of 750,000 people in Sierra Leone and Liberia. Easy Solar has invested in the deployment of more than 470 points of sales in communities, and is capable of handling physical inventory and to receive cash transactions. To ensure its products are affordable to most, Easy Solar allows customers to pay overtime through a “Buy Now, Pay Later” financing structure enabled by pay-as-you-go technology. For most of its customers who remain unbanked, this is their very first step toward financial inclusion.

Easy Solar has over 300 full time staff across Sierra Leone and Liberia, with 50% of women in senior management. In 2019, Easy Solar was awarded Social Entrepreneurs of the Year by the Schwab Foundation and World Economic Forum for its commitment to advancing SDG7 in last mile communities, ensuring no-one is left behind in the clean energy transition. For more information, visit: https://www.easysolar.org.

About Lion’s Head: Lion’s Head is a specialized investment bank based in London, Lagos, Nairobi, New York, Dubai and Amsterdam, which provides financial advisory and investment management services across a range of sectors, including agriculture, energy, financial services, and infrastructure with a focus on innovative ways to increase capital markets engagement for businesses and governments in sub-Saharan Africa. As a fund manager, Lion’s Head AUM is approximately $600m . In addition to the Off-Grid Energy Access Fund, Lion’s Head is the fund manager for the parallel FEI On Grid facility, offering debt on a project finance basis to developers, IPPs and other renewable energy platforms in Africa, the Africa Go Green Fund (AGG) that provides debt funding to energy efficiency and renewable energy businesses in Africa, and the African Local Currency Bond Fund (ALCBF), created by KfW and supported by FSDA and various DFI and private investors to anchor public debt issuances.

About TCX: TCX is a global development finance initiative structured as a fund that counts among its shareholders FMO, IFC, EBRD, EIB, KfW and AFD together with the Dutch, Swiss, British and German governments and the European Union as first loss providers. TCX offers medium- to long-term cross-currency swaps and FX forwards to hedge 100+ currencies where such products are not available or poorly accessible. TCX started its operations in 2007 and has since then provided hedging instruments with a total volume of USD 8 billion, spread over 3,000 transactions in over 60 currencies. Today, the fund has a total exposure of over USD 5 billion on 55 frontier market currencies. For more information, visit www.tcxfund.com.

13 April 2022: Speaking last week at the Smart Energy Forum in Lagos and Abuja in the presence of Nigeria’s top energy decision-makers, senior energy experts from Wärtsilä presented the latest results of an in-depth study which models the most cost-effective and reliable energy mix that can be built each year in Nigeria.

Nigeria is the largest and one of the fastest growing economies in Africa, yet despite a wealth of natural resources, the country continues to struggle with acute electricity shortages, which constrain its economic development. To combat this, last year the Nigerian government formally launched “the Decade of Gas”, setting gas development and utilization as a national priority. Identifying the most cost-effective and sustainable power generation strategies was the theme of this week’s Smart Energy Forum in Lagos.

Modelling long-term energy system solutions 

One of the highlights of the event was the presentation of Wärtsilä’s most recent 2022 to 2040 Analysis of Nigeria’s National Power System, using the advanced Plexos modelling tool to quantify system level benefits of different technologies in the Nigerian power system. The model is used to analyse and identify the optimal capacity expansion for the country.

The model shows that the country requires more aggressive capacity additions than the current situations, referred as business-as-usual scenario, in order to achieve the country’s stated 30-30-30[1] vision. But looking beyond 2030, and by mapping the country’s solar and wind potential for renewable energy, together with transmission data from five major regions, an advanced 30-30-30 scenario can be envisaged which would generate additional power and significant cost savings.

This advanced scenario recommends the installation of 45 GW of low-cost renewables in the north and west of the country by 2040, while concentrating 43 GW of gas-fired internal combustion engine (ICE) power plants in the southern regions with access to low-cost locally sourced gas. Strengthening the transmission capacity between north and south will greatly benefit the central regions as well.

As more capacity is added to the system, the cost of electricity is predicted to fall drastically within the first years, as locally sourced gas fuels more cost-efficient gas power generation to overtake expensive diesel. With the advanced scenario, cumulative saving to 2040 of up to $430 billion can be achieved when compared to the business-as-usual scenario.

A flexible solution to meet the needs of the Nigerian market 

For Wärtsilä, the choice of power generation technology is as important as the choice of fuel. In a system that maximizes the use of low-cost renewables, being able to rely on flexible power technologies becomes paramount.

In this context, ICE power plants become the technology of choice because they are flexible by design. They have a high operating efficiency, even at partial load, and are made to cope with regular start and stops. On the other hand, combined cycle gas turbines (CCGT) lack the flexibility to match the fluctuations in electricity demand. They rely on a consistent and pressurised gas supply and are most efficient when operated close to full capacity. They are not suited to offset the intermittent supply of renewables.

Detailed technology comparison between CCGT and ICE power plants show that for an equivalent 350 MW plant running 8,000 hours per year, Wärtsilä’s solution saves between 11 to 17 million US dollars per year compared to CCGT solution, thanks to its better performance in hot climates, better part-load efficiency and lower investment cost.

But there is more. Flexible ICE power plants offer several other advantages relevant in Nigeria. Thanks to their modular design, ICE power projects are easy to construct, fully scalable and can be deployed in phases. They can be ramped-up or down quickly to adjust to demand, and also provide a great hedge against fuel supply risk, as its engines can be operated on natural gas, Diesel, HFO or biofuels. What is more, they require little water to operate: Their water consumption is less than 1 % compared to the CCGT technology.

Today, Nigeria’s electricity system faces a perfect storm. Small, inefficient, expensive, and polluting diesel generators are widely used to compensate for weaknesses in the country’s grid capacity. Despite recent improvements, the gas supply system is not fully stable, which places additional strain on country’s still fragile electricity network.

Wärtsilä is convinced that building flexibility into the system by investing in gas engine power plants can provide a stable and reliable long-term solution to Nigeria’s energy challenges. As Wale Yusuff, Managing Director of Wärtsilä M&P Services Nigeria Ltd, concluded at the end of the event: “It is clear that IPPs can provide an important source of investment for new power projects. A prototype has been established and electricity tariffs are crystalizing at a fair price for the Nigerian economy and for consumers. At Wärtsilä, we understand the need to be innovative and mindful regarding off-take and financing. With flexibility and reasonably sized projects, we are convinced that together with our Partners and Stakeholders, we can generate sustainable power with improved impacts for the environment and the economy of Nigeria.”

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About Wärtsilä Energy: Wärtsilä Energy leads the transition towards a 100% renewable energy future. We help our customers in decarbonisation by developing market-leading technologies. These cover future-fuel enabled balancing power plants, hybrid solutions, energy storage and optimisation technology, including the GEMS energy management platform. Wärtsilä Energy’s lifecycle services are designed to increase efficiency, promote reliability and guarantee operational performance. Our track record comprises 74 GW of power plant capacity and more than 80 energy storage systems delivered to 180 countries around the world. For more information, visit: https://www.wartsila.com/energy.

About Yusuff Wale: Yusuff Wale is the Managing Director, Wärtsilä Nigeria. Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. He is a seasoned professional in Management, Sales, Marketing and Business Development in the Nigerian Oil and Gas and Power Industry. He started his career as a process engineer in one of the Nigerian Petroleum Oil Refineries. Over the years, he has been actively involved in large transactions of Turbo-Machineries into major FPSO projects in Nigeria as well as Internal combustion engines for both Industrial and Captive Independent Power Plants. He has presented technical papers at both local and international Oil, Gas and Power Conferences. He holds a MSc. and Bachelor of Engineering degrees in Chemical Engineering from the prestigious University of Lagos and Federal University of Technology, Minna, respectively. He has attended many trainings both in Nigeria and abroad. He is a corporate member, Nigeria Society of Engineers (MNSE).

12 April 2022: Solar Sister illuminates the lives of three million people in sub-Saharan Africa with solar products.

The Solar Sister network of women entrepreneurs has brought clean energy to three million people. Now three million more people can breathe easily, their children can study at night and get a better education, and their day doesn’t end when the sun sets. Communities are thriving, and women, in particular, are safer and have a better chance for equality. Access to energy is a crucial element of social equity and poverty alleviation.

“Without the solar lights, our health clinic relies on mobile phone light. We were virtually unable to treat patients at night. This makes it especially difficult for expecting mothers to deliver in our clinic at night”. - Dr. Crispian Ndibalema, a leading physician at Mafuleta Clinic, Tanzania.

Delivering access to energy to people in underserved communities opens up economic opportunities for women and has a positive impact on the women, their families, their communities, and even the world at large. When women have more agency they make better choices for their lives, including caring for their families and communities. When they have income of their own they invest in better education for their children, better healthcare for themselves and their families, and accumulation of savings to build resilience.

Solar Sister invests in women’s leadership and enterprise in off-grid communities. By engaging with women who deeply understand their communities, Solar Sister reaches people who have been missed by business-as-usual energy models. Centering women as leaders in the growing clean energy sector is essential to eradicating poverty and achieving sustainable solutions to the climate crisis and many development issues.

Nanbet is a young maize farmer and single mother raising five children in a rural Nigerian village with no electricity. She’s one of 6,800 entrepreneurs trained and supported to run clean energy technology businesses. Since Nanbet started her business, she’s brought in enough income to stop laboring on other people’s farms. She earns an income to provide for her family and says people see her differently now that she is a businesswoman.

“Before, my life wasn’t like this. People have since been surprised to see my children and me with meat on our bones, looking healthy. With the profits from selling solar lamps, I paid for two grandchildren to go to school”.

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About Solar Sister: Solar Sister drives impact by investing in women’s clean energy businesses in off-grid communities in Africa. Solar Sister eradicates extreme energy poverty by empowering African women with economic opportunity, providing essential services and training that enable women entrepreneurs to build sustainable businesses. Solar Sister is a climate solution that also improves human well-being, boosts equity, and helps usher in prosperity for people in sub-Saharan Africa who are least responsible for the climate crisis. To date, over 6,800 Solar Sister Entrepreneurs have reached over three million people with clean energy access. Products sold by Solar Sister Entrepreneurs have eliminated over 946,763 metric tonnes of CO2 emissions.

12 April 2022: Hybrid 90kW mini-grid connects households and small businesses to clean, reliable power | Launch directly impacts 1,500 people in Niger State | Inauguration attended by African government and energy industry dignitaries.

ENGIE Energy Access, a leading provider of solar homes systems and mini-grid solutions, has inaugurated its hybrid 90kW mini-grid to connect unelectrified households and small businesses in Nigeria.

With this mini-grid, ENGIE Energy Access connects the people of Gbangba community in Niger State to an electric power supply for the first time ever and empowers over 300 customers, comprising households, and micro and small enterprises (MSEs). The mini-grid directly impacts over 1,500 people by providing them with affordable, reliable and clean electricity.

The mini-grid was formally inaugurated today in the presence of Commissioner of Works and Infrastructure, Honourable Mamman Musa, who acted as representative for the Executive Governor of Niger State, His Excellency, Alhaji (Dr) Abubakar Sani Bello, and the Ambassador of France to Nigeria, Her Excellency, Mrs Emmanuelle Blatmann, during the launch event attended by dignitaries from the Nigerian government, power sector, traditional institutions, youth, media and the local community.

Speaking at the launch, Bankole Cardoso, the Managing Director of ENGIE Energy Access Nigeria, said that Nigeria’s electricity challenge remains a huge gap that needs to be filled in the country’s journey to fulfill its full potential as a nation.

Cardoso said that the power challenge in Nigeria requires the support of the private sector, and the construction of the Gbangba mini-grid demonstrates how private investment can help to address the infrastructure gap in the energy industry.

Cardoso added: “This mini-grid will foster socio-economic development and prosperity in the Gbangba community, its people and its neighbors. It will serve private households and commercial businesses – provision shops, grocery sellers, bakeries, mobile phone chargers etc. It will boost the productivity of farmers and food production by powering agricultural loads such as irrigation pumping and cold storage, productive loads such as grind mills and wood or metal working shops, and semi-industrials such as telecom towers and processing plants.”

Gillian-Alexandre Huart, CEO of ENGIE Energy Access, said that this mini-grid is not only a win for Gbanga community but a win for Nigeria at large, as it demonstrates ENGIE Energy Access’s strong commitment to meeting the growing decentralized energy needs with an ambition to build 100+ mini-grids throughout the country.

“The launch of our first mini-grid in Nigeria means that we have now installed mini-grids in five African countries, with other ENGIE Energy Access mini-grid sites in Benin, Uganda, Tanzania and Zambia. Our plan is to further expand our mini-grid business on the continent over the coming months and years – adding other countries to our footprint,” said Huart.

“The launch of the Gbangba mini-grid is a further demonstration of ENGIE Energy Access’s commitment to improving the quality of life and economic potential of people in rural communities, by increasing their capacity for productivity.”

Sub-Saharan Africa has the world’s lowest energy access rate, with more than half of its people unconnected to electricity. In Nigeria, about 43.5% of people live without access to energy. This presents an opportunity to employ grand-scale innovation and the intervention of renewable energy solutions within the electricity sector in Nigeria.

• EDP will focus on the Just Energy Transition through a more focused social investment strategy aligned with its purpose;
• All projects will be framed under a new common identity – EDP Y.E.S. – You Empower Society, a global brand across all countries where EDP invests in social impact initiatives;
• EDP’s ambition is to invest annually more than 30 million euros and a new area will ensure the global strategy and coordination;
• The launch of the 4th edition of the A2E (Access to Energy) fund – which supports clean energy access projects in developing countries – is one of the initiatives to go ahead with doubling the amount of funding in previous editions.

11 April 2022: With the main focus on Just Energy Transition, EDP will invest in initiatives to combat energy poverty, promote access to energy and energy efficiency, and implement solutions for access to solar energy or electric mobility. EDP is committed to investing more than 300 million euros by 2030 through a new global social investment program that will develop, promote, and coordinate the different initiatives in this area.

EDP thus demonstrates its commitment to accelerate decarbonization and achieve carbon neutrality, but without leaving anyone behind. These initiatives to promote a just energy transition are expected to represent around 45% of total investment by 2030.

In parallel, EDP maintains access to Culture as a key axis of its social strategy. The group has a long history of investment in this area, which is reflected in its role in assets such as the MAAT, the Tejo Power Station and the Portuguese Language Museum in Brazil, and believes in the importance of culture for the development of societies.

All social projects developed in the group will, from now on, have a new common identity – EDP Y.E.S. – You Empower Society – a global and transversal brand that will allow us to tell an integrated narrative about EDP’s various social projects, highlighting their positive impact on society.

The investment, over 30 million euros per year, will be made through different vehicles, such as the foundations in Portugal, Spain and Brazil and the different business units.

“The climate emergency demands ambition, commitment and a collective effort towards a fair and faster energy transition. No one should be left behind and that is why EDP is reinforcing its commitment to a more ambitious social program with greater impact on communities. We want to do it through initiatives to fight energy poverty and ensure access to energy, while promoting education and culture. At EDP, we’ve made it our mission to bring positive change, and I am confident that Y.E.S. is an important contribution to achieving this goal”, says Miguel Stilwell d’Andrade, CEO of EDP.

Strategy with new global coordination

In 2022, the planned actions include the Futuro Ativo Sines (Sines Active Future) program, an example of projects to reconvert thermoelectric power plants into green energy production centers, with support for sustainable entrepreneurship initiatives, training in renewable energies or improving energy conditions for families.

Another of the planned initiatives involves promoting solar solidarity in different countries through the Foundations in Portugal, Spain (with Fundación EDP) and Brazil (with Instituto EDP), which consists of providing photovoltaic panels for energy production to NGO’s, families or more vulnerable groups.

With the new strategy, EDP also assumes the fight against energy poverty and the promotion of energy efficiency in poorest communities as one of its priorities. In Spain, several projects have already been launched in this area, with similar initiatives planned for Portugal this year with an overall investment of more than one million euros. Additionally, EDP has strengthened its partnership with the NGO Just a Change, with which it has collaborated since 2018 in the fight against energy poverty.  

In addition to the reinforced investment, a Social Impact Coordination Office (SICO) was set up to maximize the EDP Group’s social impact by defining the global strategy and coordinating social projects in the different countries and areas of activity, including volunteer work and partnerships with other entities.

A2E Fund doubles funding for projects in Africa

The focus on projects that promote access to clean energy in developing countries is another commitment that is reinforced by EDP’s new social impact strategy. Created in 2018, the A2E Fund (Access to Energy) launches its fourth edition this Tuesday, April 12th, with double the amount of funding: one million euros to support projects in five African countries – Mozambique, Nigeria, Malawi, Angola and Rwanda.

Besides the reinforcement of the global amount, the value to be attributed per selected application is also increased to an amount that can go from 50 thousand to 150 thousand euros. It is a significant change that will allow the development of more robust projects with greater impact on communities, both in the number of organizations supported and in the number of people benefited.

The application phase, that has just started through the EDP website, ends on May 16th, and the results will be announced at the end of the year. In the last three editions, the A2E Fund has allocated 1.5 million euros to 20 projects, generating direct and indirect benefits for more than one million people in seven African countries.

11 April 2022: A Memorandum of Understanding (MoU) has been signed between the Mozambican Renewable Energy Association (AMER) and the Alliance for Rural Electrification (ARE). The MoU outlines the shared goals of the two organisations to address the challenges related to the optimal use of the various renewable energies for electrification and the potential for energy efficiency in Mozambique. Both organisations agreed to promote social and economic development by increasing the share of renewable energies in the energy mix in Southern Africa and particularly Mozambique.

The associations will collaborate on various activities, including joint advocacy for renewable energy policies in Mozambique to create a conducive market environment for decentralised renewable energy (DRE) actors, accompanying and contributing to the government’s efforts to achieve renewable energy targets as well as targeted business development and market intelligence support for renewable energy companies.

In this regard, the associations especially aim to develop the capacity of renewable energy stakeholders in Mozambique to create local jobs and enhance the capacity of the sector to attract adequate financing for renewable energy projects and businesses. This will, for example, be achieved by spearheading in-person or virtual “DRE Investment Academies” or similar trainings and capacity building activities for Mozambican and international DRE developers and other stakeholders, with the aim of facilitating additional funding and technical support.

Finally, the MoU states that the partners will offer support through business development services for renewable energy actors working in Mozambique, to address electrification, energy security and climate change challenges, as well as conduct applied research to foster the market for renewable energy technologies.

David Lecoque, CEO of ARE said: “As ARE, we are happy to sign this MoU that lays out concrete steps to advance clean and affordable energy access in Mozambique. Together with AMER, we aim to further empower renewable energy companies and investors active in Mozambique to achieve SDG-7 in the country.”

Gabriele Pammesberger, ARE Africa Lead added: “We are very pleased to enter into this partnership with AMER to jointly foster the development of a thriving, private sector-driven renewable energy sector in Mozambique, specifically by building local capacity and empowering local entrepreneurs. Skills development, capacity building and knowledge exchange will lie at the heart of our cooperation.”

Ricardo Costa Pereira, President of AMER said: “This MoU has come to cement the long and fruitful relationship that AMER and ARE have had over the years that has brought, and will continue to provide, numerous benefits and opportunities for AMER members as well as the overall renewable energy sector”.

Helena Macune, Communication Officer of AMER said: “There is no doubt that this partnership brings a continuity of our relationship with more added value. We believe that both organisations are winners and above all we believe that it will increase our commitment to the work we do for our members”.

1 April 2022: The impact of Covid-19 has reversed progress on access to electricity and clean cooking while slowing vital improvements in energy efficiency, according to the International Energy Agency’s latest update of data and projections related to key aspects of the UN Sustainable Development Goals. However, renewable energies have shown resilience to the shock caused by the pandemic.

Even if renewables maintain their rapid growth, and if access and efficiency improvements recover to their pre-pandemic pace, these measures will still lag the rate of improvement needed to achieve both universal energy access by 2030 and net zero emissions by 2050, according to the IEA analysis SDG7: Data and Projections, which is fully available online.

UN Sustainable Development Goal 7, or SDG7, aims to ensure access to affordable, reliable, sustainable and modern energy for all by 2030. The IEA is at the forefront of global efforts to assess and analyse progress towards this goal, and its most up-to-date data and projections are available through these interactive data tools. For the first time, these projections incorporate the IEA’s landmark Net Zero Emissions by 2050 Scenario, in which the SDG7 targets are achieved in full.

About 770 million people worldwide lacked access to electricity in 2020, according to the most recent data, breaking a multiyear stretch during which the world was making marked progress. In Africa, the number of people without access increased for the first time since 2013, and the continent now accounts for almost 80% of the world’s population without electricity. Gains slowed down in Asia, but proved more resilient than in Africa, thanks to effective policies and easier access to financing. Without additional policy action, there would still be around 670 million people without access in 2030, almost all of them in Africa.

The number of people lacking clean cooking facilities rose in 2020, with serious implications for household air pollution and deforestation. The pandemic not only shifted government priorities away from clean cooking initiatives, but economic hardship forced many people who had gained access to revert to burning charcoal or wood for fuel.

Worldwide, about 2.5 billion people lack clean cooking options, and under today’s policy settings their number will decrease only to about 2.1 billion by 2030. Reaching full access by 2030 would require finding clean solutions for 280 million people a year, around five times the rate of improvement seen in the years leading up to the pandemic.

Achieving full access to electricity and clean cooking by 2030 would require annual investment of around USD 43 billion – or only 2% of current global energy investment.

The pandemic also slowed energy efficiency progress, with global energy intensity improving by only 0.5% in 2020. Some of this was a result of global market turmoil, but low energy prices, fewer efficiency enhancements and a shift in economic activity towards manufacturing and away from less energy-intensive services all contributed to lower levels of intensity improvements. While early estimates for 2021 suggest a return to progress levels similar to before the pandemic, the average rate of improvement during the 2020s is expected to only reach 2.3% per year. This would be well below the 3.2% pace required to achieve SDG targets and the more than 4% pace needed to be on track to reach net zero emissions by 2050.

One bright spot is that renewable electricity capacity additions reached a new record in 2021, shrugging off the pandemic’s disruptions to economic activity and supply chains. Wind and solar have the fastest growth rates among renewable electricity sources, though hydro remains by far the largest source. With current policies, the world is on track to derive 18% of total final consumption from modern renewables by 2030, up from around 12% in 2019, though this would still be well short of the 32% needed by 2030 to be on track for net zero by mid-century.

The IEA works with four other international organisations – the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank and the World Health Organization (WHO) – to produce an annual report that reports the official statistics indicating progress on the SDG7 targets. The next edition is scheduled to be published in June.

• The Nigerian Rural Electrification Agency, in collaboration with RMI and supported by the GEAPP, launches the Energizing Agriculture Program to catalyze economic development and improve rural livelihoods in Nigeria through linking minigrids and agricultural productivity.

31 March 2022: Today, the Nigerian Rural Electrification Agency (REA) and RMI, an independent nonprofit focused on transforming the global energy system to secure a clean, prosperous, zero-carbon future for all, officially launched the Energizing Agriculture Program (EAP). The EAP is a three-year initiative with the Global Energy Alliance for People and Planet (GEAPP), with funding from The Rockefeller Foundation, that aims to stimulate the use of minigrid electricity in agricultural productive uses (i.e., those that drive local economic growth). The EAP focus is on enabling market-led solutions and breaking the silos separating electrification and agricultural development.

Over the next three years, the EAP initiative will foster a pipeline of agriculture-energy projects that demonstrate the impact of collaborative development efforts across the energy and agriculture sectors. Across these activities, the EAP is designed to ensure local ownership of solutions and scaling by partnering widely and sharing insights broadly.

As part of the GEAPP’s broader efforts to bring reliable electricity to 1 billion people by decade’s end, avert 4 billion tons of greenhouse gases and enable 150 million green jobs that generate inclusive economic growth, the EAP will build on existing agriculture and electrification initiatives in Nigeria and then accelerate the deployment and adoption of the most effective solutions for rural communities across the country. The EAP will achieve this by bringing together teams of local partners to validate commercially led business models, demonstrate agricultural appliances and scale proven solutions.

Agriculture is the economic backbone of rural Nigerian communities, where minigrids, small-scale electricity grids that can power a community independently, are often the least-cost electrification option. Experts estimate that Nigeria’s agricultural sector, which provides nearly one-quarter of the country’s GDP and employs two-thirds of the labor force, has the potential to generate $40 billion in exports. Using electricity to power opportunities like these can drive a virtuous cycle for rural development by increasing incomes and community resilience and improving the financial performance of the minigrid utility.

“The Federal Government of Nigeria has been very deliberate about leveraging strategic partnerships for optimum impact in off-grid communities across Nigeria. I am confident that the EAP is deliberately designed to open a whole new world of possibilities to farmers and artisans in the agricultural sector,” said Goddy Jedy-Agba, OFR, Minister of State, Nigerian Federal Ministry of Power. “As the renewable energy space improves yearly, we have continued to keep a keen eye on the deployment of programs and solutions geared toward socioeconomic impact in unserved and underserved communities across Nigeria. The EAP is one of those programs.”

“This program encourages the productive use of energy to deepen our objective of organizing and managing the agricultural sector in Nigeria. Leveraging renewable energy technologies for productive use in off-grid communities greatly helps to strengthen production capacity of the average Nigerian farmer in rural communities. The EAP is in line with our mandate at the Federal Ministry of Agriculture and Rural Development toward strengthening agriculture and rural development across the country,” said Dr. Mohammed Mahmoud Abubakar, Nigeria’s Minister of Agriculture and Rural Development.

“Catalyzing the productive use appliance market is a critical priority on the current REA strategy roadmap, designed to increase economic opportunities in off-grid communities. Beyond providing electricity to the unserved and the underserved, the ultimate goal for the REA is to make sure that the electricity impacts the communities both socially and economically, and agriculture is the chief activity that supports livelihoods in almost all rural communities. That is why we are going beyond powering residential communities to also focus on energizing their agricultural clusters as well,” said Engr. Ahmad Salihijo Ahmad, managing director/CEO of REA.

“Addressing the energy deficit challenge in sub-Saharan Africa is fundamental to unlocking agricultural productivity, new income-generating activities and acceleration of global decarbonization efforts,” said Justin Locke, managing director of RMI’s Global South Program. “The EAP’s potential to electrify agricultural loads can catalyze scaling the adoption of decentralized renewable energy systems and spur local community development.”

Supporting demand, jobs and small and medium enterprise growth by increasing agricultural productive use at minigrid sites is critical to uplifting low-income communities in Nigeria. The EAP will directly contribute to these efforts by deploying productive use appliances in rural communities and proving out business models to scale similar interventions at minigrid sites throughout Nigeria. Equipment like electric grain mills and cold storage can plug directly into existing agricultural value chains once electricity is available.

“Despite incredible advances in renewable energy technologies, we haven’t seen these innovations spread at the speed and scale needed to reach the communities most in need, especially in the agricultural sector,” said Joseph Nganga, executive director for Africa at the GEAPP. “The EAP will bring together farmer organizations, private agricultural companies, donors, equipment manufacturers and governments to surface innovations and embed them within existing value chains. If we are successful, some of these solutions will have wide uptake, helping to catalyze more equitable and sustainable economic development.”

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About REA: The Nigerian Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyze economic growth and improve quality of life for Nigerians. The Agency is responsible for creating an enabling environment for private sector-led projects which includes conducting pre-feasibility assessments, energy audits, enumeration, data analysis, identification of qualified private sector developers, and project stakeholder engagements.

About RMI: RMI is an independent nonprofit founded in 1982 that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. We work in the world’s most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing. For more information, visit: www.rmi.org.

About the Global Energy Alliance for People and Planet (GEAPP): The Global Energy Alliance for People and Planet (GEAPP) launched at COP26 with USD10 billion of committed capital to accelerate investment in green energy transitions and renewable energy solutions in developing and emerging economies. This historic partnership leverages catalytic grant funding to unlock investment capital with the aim of mobilizing public and private capital in order to reach one billion people with reliable, renewable power, avoid and avert 4 billion tons of carbon emissions, and create more than 150 million direct jobs and drive economic growth over the next decade. GEAPP provides grant funding, a range of financing options, and technical assistance and serves as a platform for collaborative action. For more information, visit: www.globalenergyalliance.org.

About The Rockefeller Foundation: The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation to enable individuals, families, and communities to flourish. We work to promote the well-being of humanity and make opportunity universal. Our focus is on scaling renewable energy for all, stimulating economic mobility, and ensuring equitable access to healthy and nutritious food. For more information, visit: rockefellerfoundation.org.

24 March 2022: The World Bank today approved a $295 million grant from the International Development Association (IDA) to help Chad expand its access to energy.

The Chad Energy Access Scale Up Project (PAAET) aims to increase access to electricity and clean cooking solutions via expansion of the main power grid and mini-grids, standalone solar systems, deployment of improved stoves, and natural resource management. It will expand electricity access in the capital city of N’Djamena and in 12 secondary cities in which the national power company, Société Nationale d’Electricité (SNE), operates mini-grids, and provide access to electricity services in additional secondary cities and villages, including those located near refugee camps. Public and private investments will strengthen the country’s electricity generation, storage, and distribution capacity.

“The Bank’s support strategy for access to energy in Chad is based on a two-pronged approach: off-grid electrification led by the private sector to rapidly boost access and national grid-based electrification by SNE, which is strategically important,” said Clara de Sousa, Country Director for Burkina Faso, Chad, Mali, and Niger.

“With private sector participation, this project aims to increase electricity access from the current rate from about 6% to 30% by 2027 for approximately one million households,” added Rasit Pertev, World Bank Country Manager for Chad.

As a result of the PAAET, more than six million people will benefit from electricity services, including 400,000 refugees and about 740,000 people from host communities. The project will also provide access to electricity for approximately 850 medical centers and 700 schools, mainly in rural areas, including 150 medical centers and 200 schools for refugees and host communities.

Despite significant fossil fuel resources and abundant sunshine, Chad has one of the lowest electricity access rates in the world at 6.4%, compared to the average of 48% in Sub-Saharan Africa. In July 2020, the government implemented a National Emergency Electricity Plan (NEEP) with a view to achieving a 53% access rate by 2030. The PAAET, the Cameroon-Chad Power Interconnection Project (CCPIP) currently being implemented, and the World Bank-financed energy sector reforms are expected to help Chad achieve the objectives of the NEEP.

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About International Development Association - World Bank: Established in 1960, the World Bank’s International Development Association (IDA) helps the world’s poorest countries by providing grants and low- or zero-interest loans for programs that boost economic growth, reduce poverty, and improve living conditions. IDA is one of the largest sources of assistance for the 1.5 billion people who live in the world’s 75 poorest countries, 39 of which are in Africa. Annual IDA commitments have averaged about $18 billion over the past three years, with about 54% going to Africa. For more information, visit: http://ida.worldbank.org/.

24 March 2022: A new partnership between New Energy Nexus and Clean Tech Hub announced today will accelerate diverse clean energy entrepreneurs and the development of local ecosystems to support climate solutions across Nigeria and West Africa.

Located in Abuja, Nigeria, Clean Tech Hub is a pioneering hub for the research, development, and incubation of clean technologies, increasing energy access and improving climate resilience. The partnership will leverage New Energy Nexus’ expertise in accelerating clean energy startups around the world through funds, skills and networks at the most critical stages of an entrepreneur’s journey to build their climate solution.

“Clean Technology Hub has been a leading accelerator in the Clean Tech ecosystem for several years, incubating several early-stage startups and providing them with growth support in the years to come. We are excited to meet New Energy Nexus in this partnership and to continue supporting clean energy startups,” said Ifeoma Malo, CEO and co-founder at Clean Tech Hub.

“Our partnership with New Energy Nexus will allow us to further scale our impact as we expand across West Africa – a particularly urgent task given the need for grassroots and locally developed solutions to tackle the climate crisis.”

West Africa is at the forefront of climate change impacts, but is also poised to be a center for economic growth and innovation. Nigeria, already the largest economy and population in Africa, is projected to have the 14th largest economy by GDP in the world by 2050. Over 30% of Nigerian residents are new entrepreneurs or the owner/manager of a new business – among the highest rates in the world. West Africa, home to more than 380 million people, is one of the youngest and fastest growing populations in the world.

“There are not enough diverse and thriving clean energy entrepreneurs to match the scale of the clean energy transition, at the global level, let alone in the regions we need it most. That’s why we are thrilled to partner with Clean Tech Hub. Not only is it Nigeria’s leading organization supporting clean energy innovation, it is perfectly positioned to scale local climate solutions across West Africa,” said Danny Kennnedy, CEO of New Energy Nexus.

The New Energy Nexus and Clean Tech Hub partnership is a region-wide acceleration program for West African countries with a climate fintech program in Nigeria already in an early design stage.

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About New Energy Nexus: New Energy Nexus is the world’s leading ecosystem of funds and accelerators supporting diverse clean energy entrepreneurs. NEX started in Silicon Valley and now operates an ecosystem of programs and partners across 11 countries that we’ve identified as most strategic for clean energy development. Since 2004, NEX has leveraged US$1.5 billion in investment, invested in over 100 clean energy enterprises, and supported over 450 more through its industry leading programs.

About Clean Tech Hub: Clean Tech Hub is a pioneering hybrid hub for the research, development, demonstration and incubation of clean and green ideas and technologies in Africa, and their validation for commercial-stage development.  It is an early start-up incubator for inventions and innovations in clean energy, a consultancy for sustainability and energy efficiency solutions and a driver of clean energy investment into Africa.

24 March 2022: Energy 4 Impact is pleased to announce that it has selected BM Solutions and Ventura as the first two energy access companies to receive support along their fundraising journey through the GET.invest Finance Readiness Support programme. A service of the European programme GET.invest, the GET.invest Finance Readiness Support enables locally owned and managed clean energy businesses to access the required finance to grow and offer clean energy solutions at scale in Africa.

Despite playing a vital role as engines of job creation and economic growth, early-stage companies face significant barriers in tapping into funding opportunities, largely due to their lack of track record, relatively small size, and sizeable financing requirements. This access-to-finance gap for small local companies is a major roadblock towards achieving universal energy access: 84% of people without access to energy live in rural areas and local companies are well-positioned to meet their needs given their deep distribution roots and knowledge of local customer preferences. Support from Energy 4 Impact through GET.invest will enable promising energy companies to prepare their business case to prove to investors that they are ready for capitalisation.

Solar supplier BM Solutions installs solar home systems, solar-powered water pumps and solar fridge freezers at rural households, farms and businesses in Benin. The company distributes lighting and appliance charging options, potable water production systems, and irrigation and cold chain solutions in regions where the grid is weak or non-existent.

Such products can have a significant impact on communities and businesses: from extended business operating hours and more productive farms and shops better able to offer safe food products with a longer shelf life; to more secure residential areas, with well-lit homes where children can study after dark, and families can access broadcast media for learning and entertainment.

The company has ambitious plans to extend its reach to the least electrified region of northern Benin and become the leading provider of solar-powered irrigation in the country by 2025. Energy 4 Impact will support BM Solutions by offering market analysis, creating a business plan including a growth trajectory, producing a financial model for their capital raise, along with a pitch deck to approach investors.

Alban Brice Mongbo, co-founder of BM Solutions says, "Being part of the first cohort is an extraordinary opportunity for us to put our ambition and vision in motion. With Energy 4 Impact’s investment readiness support, we’ll cost our operational expansion and build a convincing story for strategic investors. Our future investors and partners will play a vital role in enabling us to bring life-changing equipment and appliances to those most in need".

Ventura is a solar-powered mini-grid developer currently working on three mini-grid projects in Nigeria to provide sustainable electricity on demand to power local businesses, industries, and households. The company plans to develop a fast-growing portfolio of green mini-grids over the next five years in areas within the country where around 70% of the local communities are off-grid, and the remaining 30% are underserved. There is huge potential for clean energy to boost local economies in these regions through providing productive use equipment and appliances to small businesses, especially in the agri-processing sector. Energy 4 Impact will support Ventura with technical assistance in market research as well as operational and business strategy development. Investment readiness support will also help them package their projects persuasively to raise capital for two of their mini-grid projects that currently remain unfunded.

Obinna Agwu, Managing Director/CEO of Ventura, comments, "We are excited at this opportunity to work with the GET.invest and Energy 4 Impact teams on raising funds for our solar mini-grid projects. It is a hugely welcome development that will help us complete our projects more quickly and scale up our business".

The GET.invest Finance Readiness Support was launched in 2021 to provide early-stage, micro, small and medium-sized local energy companies in sub-Saharan Africa, the Caribbean and the Pacific with hands-on, in-depth business development advice and coaching alongside their fundraising journey. The concept is based on extensive stakeholder consultations and is being further developed in close cooperation with several industry partners in an initial pilot phase. Implemented by eight leading advisory firms, including Energy 4 Impact, the GET.invest Finance Readiness Support will draw upon their networks to support innovative, impactful and scalable businesses. GET.invest is a renewable energy investment mobilisation programme supported by the European Union, Germany, Sweden, the Netherlands and Austria.

23 March 2022: African Guarantee Fund for Small and Medium-sized Enterprises (AGF) has signed an equity guarantee agreement with Empower New Energy (Empower) paving the way for long-term renewable energy investments for commercial and industrial businesses across Africa.

The Norwegian Agency for Development Cooperation (Norad) has also provided partial support to the costs of the guarantee, with the instrument expected to be the first of many as Empower scales up its African renewable energy investments this year. This first guarantee will cover part of Empower’s investment into Ghana’s Solarplast Project Company Limited and has enabled the financing of a rooftop solar PV facility at the factory premises of Miniplast Limited in Accra, Ghana.

Bank lending represents by far the largest source of external finance for Small and Medium-sized Enterprises (SMEs) in Africa. As a result, SMEs rely heavily on traditional debt to fulfill their cash flow and investment needs which sometimes leads to inappropriate use of short-term funds to finance long-term projects. Consequently, financial distress increases on these SMEs as their debt-to-equity ratio increases. To avoid this, equity finance is crucial for SMEs seeking long-term investments, in order to sustain innovation, value creation and growth.

Commenting on the partnership, AGF Group CEO Jules Ngankam stated, “The low level of capitalisation of SMEs and excessive reliance on debt financing compared to equity imposes costs and increases the risk of financial distress and bankruptcy. While bank financing will continue to be crucial for the SME sector, more diversified options for SME financing are needed to support long-term investments and reduce the vulnerability of SMEs to changes in the credit market. Through this equity guarantee agreement with “Empower New Energy”, AGF is indeed broadening the range of financing instruments available to SMEs in Africa, to enable them to continue playing their role in growth, innovation and job creation. We are also particularly glad that our equity guarantee has enabled financing of renewable energy thereby contributing to meeting Africa’s fast-growing demand for power.”

Terje Osmundsen Empower CEO & Founder stated, “We are delighted to enter into a new partnership with AGF, and to be the recipient of their first equity guarantee. The potential of the commercial and industrial renewable energy market in Africa is significant, but requires highly tailored solutions that reflect the specific needs of companies. As Empower scales up this year, combining our unique investment model with AGF’s equity guarantees will reduce risks and help to provide cheaper, more reliable energy for even more businesses across Africa”.

Empower New Energy is a renewable energy investment company investing in small and medium-sized clean energy projects, with a main focus on Commercial and Industrial clients in Africa. The investment vehicle, Empower Invest, is financed by private and public Norwegian and European investors, including Norfund (Norway’s development fund) and ElectriFI (the European Union).

23 March 2022: The clean energy transition is an opportunity for many African countries to bypass traditional fuels and infrastructure and go straight to building sustainable energy systems, but they will need the support of the international community, especially to attract the necessary investments.

Ministers and stakeholders from across Africa met today in Paris at an event organised by the International Energy Agency to share their experiences and views of the continent’s energy priorities and challenges. The event was chaired by Belgian Minister of Energy Tinne Van der Straeten ahead of the IEA’s 2022 Ministerial Meeting.

Assessing the situation following the COP26 Climate Change Conference last November – and ahead of COP27, which Egypt will host later this year – participants in today’s event agreed on the need for strengthened international action to address existing barriers to clean energy investment and to promote capital deployment across the continent.

Africa is already one of the regions of the world most affected by climate disorders and is home to one-sixth of the global population. Yet, it accounts for less than 6% of global energy consumption and 2% of cumulative global emissions. The continent faces a parallel imperative of extending electricity access to hundreds of millions of citizens who are currently deprived of it, which would stimulate economic growth and help attain sustainable development goals.

At the same time, Africa has the potential to play a leading role as the world’s energy systems transition to a net zero future. The continent’s geographic diversity holds huge potential for solar and wind power, and its soils are home to many of the minerals and rare earths needed for clean energy technologies.

The IEA has long placed a special focus on Africa, particularly in terms of its work on energy access issues. The Agency’s analysis has highlighted that because of perceived risks, energy investments in Africa often face much higher financing costs than comparable projects in developed markets. Later this year, the IEA plans to publish its latest Africa Energy Outlook report, which will focus on addressing this issue in particular ahead of COP27.

Following today’s event, Minister Van der Straeten recommended to the broader IEA membership that the Agency further deepen its engagement with Africa to identify practical steps that industry, governments and international organisations can take to drive down the cost of energy investments while focusing on the technologies best suited to Africa.

The 2022 IEA Ministerial Meeting is taking place in Paris on 23 and 24 March under the theme of accelerating global action on clean energy and energy security. It is chaired by US Secretary of Energy Jennifer M. Granholm. Ministers from IEA Member, Association and Accession countries, and other key partners, are taking part in the events along with top representatives from industry, finance and civil society.