• Bboxx, EDF, and SunCulture team up with Togo Government to accelerate access to sustainable solar-powered farming

17 December 2020: Bboxx, a next generation utility, EDF, a global leader in low-carbon energies, are expanding access to solar-powered irrigation systems for thousands of farmers. With the launch of this new business line, Bboxx and EDF are stepping up the pace of their cooperation launched in 2018 with the creation of a joint-venture Bboxx EDF Togo. The latter is committed is making sustainable irrigation more accessible for underserved communities in Togo, increasing agricultural productivity, generating additional income, and improving economic opportunities.

As part of the partnership, the Government of the country is providing a 50% subsidy to halve the cost of irrigation systems for 5,000 farmers. This is alongside tax exemptions on import duties and VAT on the water pumps, making the product more affordable for the end user – smallholder farmers in Togo. This builds on the “CIZO cheque” subsidy launched in 2019 by the Togo Government, which made solar energy more affordable to help overcome energy poverty.

Supplied by solar irrigation provider SunCulture, EDF’s partner and affiliate in Kenya, Bboxx EDF Togo will be deploying the water pumps and arranging financing for customers. The Togolese market will benefit from SunCulture’s experience from having rolled out this solution at a large scale in East Africa. EDF brings its hands-on expertise in the sale and installation of off-grid solutions in Central and West African markets. The irrigation systems to be deployed in Togo will also benefit from EDF’s technical R&D expertise in the off-grid sector, where EDF will oversee design choices and help enhance product performance.

The water pumps will be integrated with Bboxx Pulse®, Bboxx’s comprehensive management platform using Internet of Things (IoT) technology, allowing for remote management and monitoring. The services will be provided on the same pay-as-you-go (PAYG) model used by Bboxx’s Solar Home Systems (SHSs).

This deal will improve farmers’ economic opportunities by increasing productivity by up to five times, while removing the need to travel long distances to bring back water. It will enable farmers to secure a harvest even during the dry season, with the possibility to grow higher value crops. It will also create additional irrigation by increasing the area cultivated. This contributes to the United Nations Sustainable Development Goal 8 – decent work and economic growth.

As market leaders in Togo and joint venture partners since 2018, this latest announcement comes as Bboxx and EDF double down on scaling their operations. Working as part of the Togo Government’s national electrification “CIZO” programme, Bboxx EDF Togo already has a substantial footprint and network in the country. They have positively impacted over 120,000 citizens’ lives thanks to domestic off-grid solar kits offering access to clean, reliable and affordable energy. Both partners are now committing to expanding energy to an even larger part of Togo’s population, while also moving into other much-needed services, like sustainable agriculture.

Mansoor Hamayun, CEO and Co-Founder of Bboxx, commented: “Strengthening our partnership with EDF in Togo by expanding our energy services and moving into sustainable agriculture, is an exciting milestone in our joint venture. For farmers in rural Togo, this latest deal will be life-changing, improving productivity, household income and quality of life, while fostering economic development at scale and contributing to the UN’s Sustainable Development Goals.

“The Togo Government’s subsidy is vital to accelerate this programme to thousands of farmers and make sustainable agriculture affordable for all. We are passionate about leveraging our pioneering technology to contribute to the green economic recovery. We are making energy and other vital services more accessible as we continue on our mission to unlock potential and transform lives.”

Xavier Rouland, EDF’s Off-Grid Department Director, commented: “After two years of growth in Togo in the field of solar kits, this new step is crucial for us since it will help boost the rural economy, offering farmers tools that increase their incomes while using more environmentally friendly solutions. We are very proud, with our partner Bboxx, and thanks to the political will of the Togolese authorities, to bring forward the solar powered irrigation know-how of SunCulture, EDF’s Kenyan partner, as well as our experience of the off-grid market in West Africa.

“This operation is the embodiment of our ambition in the off-grid business: to create synergies between our various partners and companies in our different countries of operation, for the benefit of rural populations and the improvement of their economic and living conditions.”

Samir Ibrahim, CEO & Co-Founder of SunCulture, commented: “We are in a global food crisis, and this subsidy program is an important showcase of how innovating financing can play a leading role in addressing food insecurity across Africa. This partnership will be catalytic in promoting off-season and higher-value agriculture across Togo, and we’re certain that it will pave the way for other sub-Saharan African countries to mobilize resources to address food crises, improve livelihoods, and spur economic development.

“We are thrilled to be a contributing partner in Africa’s largest public/private partnership utilizing smart solar irrigation subsidies, and in doing so, ensuring that sustainable agriculture is both affordable and accessible to those who stand to gain the most.”

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About Bboxx: Bboxx is a next generation utility, transforming lives and unlocking potential through access to energy. Bboxx manufactures, distributes and finances decentralised solar powered systems in developing countries. It is scaling through forging strategic partnerships and its innovative technology Bboxx Pulse®, a comprehensive management platform using IoT technology. Through affordable, reliable, and clean utility provision, Bboxx is bringing people into the digital economy, creating new markets, and enabling economic development in off-grid communities and those living without a reliable grid connection. The company is positively impacting the lives of more than one million people with its products and services in over 35 markets, directly contributing to 11 of the 17 United Nations Sustainable Development Goals.

So far, Bboxx has deployed more than 350,000 solar home systems. Bboxx has over 800 staff across nine offices including in Democratic Republic of Congo, Kenya, Rwanda, and Togo, with its head office in the UK and its manufacturing operations in China. In 2019, Bboxx was the winner of the Zayed Sustainability Prize in the Energy category – testament to the way the company is making a meaningful difference to people’s lives around the world.

About EDF: A key player in energy transition, the EDF Group is an integrated electricity company, active in all areas of the business: generation, transmission, distribution, energy supply and trading, energy services. A global leader in low-carbon energies, the Group has developed a diversified generation mix based on nuclear power, hydropower, new renewable energies and thermal energy. The Group is involved in supplying energy and services to approximately 38.9 million customers(1), 28.8 million of which are in France. It generated consolidated sales of €71 billion in 2019. EDF is listed on the Paris Stock Exchange.

(1)The customers were counted at the end of 2019 per delivery site; a customer can have two delivery points: one for electricity and another for gas.

About SunCulture: SunCulture develops and commercializes life-changing technology that solves the biggest daily challenges for the world’s 570 million smallholder farming households. The company is a market leader in solar-powered water pumps and irrigation systems, serving customers in Kenya, Ethiopia, Uganda, Zambia, Senegal, Togo, and Cote D’Ivoire. SunCulture’s investors and partners include EDF, EAV, ARAF, DPI, Shell Foundation, USAID, Microsoft Corporation, and MIT. The company is recognized as a Bloomberg New Energy Pioneer and a Financial Times Transformational Business, and was named to the London Stock Exchange’s “Companies to Inspire Africa” index.

14 December 2020: Oolu, a leading solar distributor in West Africa, has closed a $8.5 million Series B investment round led by independent renewable energy developer RP Global. Additional participating investors included Persistent Energy Capital, Shell-seeded impact investor All On, Gaia Impact Fund, and DPI Energy Ventures.

Oolu’s mission is to provide affordable energy access to rural and peri-urban customers in West Africa. Since its inception in 2015, the company has sold over 60,000 solar home systems to customers in the region. In addition to a large distribution and service network, Oolu employs over 250 full-time employees and is run by a Dakar-based management team of whom 50% are women. With this investment, Oolu will expand its core product offering to meet the needs of its current and future customers and further develop its operations in West Africa.

Dan Rosa, CEO and co-founder of Oolu, said: “The strength of our business and industry during a challenging global pandemic has demonstrated the value that customers see in our products and service. RP Global’s financial expertise and experience in managing renewable energy businesses will enable us to accelerate our growth. All On’s unparalleled knowledge of the renewable energy sector in Nigeria will help us to further adapt our business to meet customers’ needs. In addition, we are excited to continue our successful collaboration with current investors especially Persistent.”

Leo Schiefermueller, Director of RP Global Africa, comments: “We are looking forward to working with the most promising solar home systems provider in West Africa. Having found a partner with such an efficient structure and excellent management, makes us optimistic that this will be our greatest venture in Africa to date. The fantastic team at Oolu is prepared to lead the company towards a whole new level of success and growth in all areas of one of Africa’s most important challenges - ‘access to energy’.”

All On Investment Manager, Afolabi Akinrogunde added: “Oolu Solar’s operational expertise, geographical spread in West Africa, flexibility and efficiency has earned the company a leadership position in solar home systems distribution. Their success across the region and Nigeria gives All On the confidence that this investment will further enhance our commitment to enabling the deployment of affordable off- grid power solutions in the Niger Delta and Nigeria as a whole.”

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About Oolu: Oolu is a for-profit, social impact company operating in five West African countries: Nigeria, Senegal, Mali, Burkina Faso, and Niger. After the company was founded in 2015 by Nilmi Senaratna and Daniel Rosa and went through from Y Combinator’s Summer 2015 batch, it has sold over 60,000 solar home systems and built a proprietary management platform and distribution network. Oolu’s solar systems guarantee modern and affordable energy access to households and businesses located in areas with unreliable grid or completely off-grid. For more information visit: https://oolusolar.com/.

About All On: All On, an impact investing company, was seeded with funding from Shell, and works with partners to increase access to commercial energy products and services for unserved and underserved off-grid energy markets in Nigeria, with a special focus on the Niger Delta. All On invests in off-grid energy solutions spanning solar, wind, hydro, biomass and gas technologies deployed by both foreign and local access-to-energy companies that complement available grid power across Nigeria and help bridge the country’s significant energy gap. For more information visit: www.all-on.com.

About RP Global: RP Global is a developer and independent power producer that draws its expertise from over 30 years of experience in the renewable energy sector. As a developer, investor and operator, RP Global’s focus is on hydro, wind and solar PV projects. The company has had many successful partnerships and cooperations with investors and lenders such as the IFC/World Bank, the EBRD, Mirova/Natixis, the Marguerite Fund and the Bank of Georgia. 

RP Global’s international team is active in Europe, South America, and Africa: Austria, Spain, Portugal, Croatia, France, Poland, Peru, Argentina, Tanzania and Nigeria. For more information visit: http://www.rp-global.com.

14 December 2020: The Africa Enterprise Challenge Fund (AECF) has launched a US$ 8.5 million grant facility to support adoption and diversification of renewable energy solutions in the Somalia and Somaliland. This is a component of the REACT Sub Saharan programme, that seeks to reduce poverty through a transformational increase in the use of renewable energy by off-grid households.

“The Somali market presents a unique opportunity for us and other development partners to change the narrative on reliance of diesel-powered mini-grids as we facilitate a switch to renewable energy sources.  To achieve this stimulation of market growth and engagement of private sector in renewable energy value chains is pivotal,” said Victoria Sabula, Chief Executive Officer of AECF.

According to the World Bank SDG tracking report, it is estimated that 11 Million Somalis lack access to electricity services with only 3% having access to clean cooking, this lack of electricity and use of poor-quality cooking fuels continues to hamper development for low-income households of the people of Somalia.

“For this call, we are looking to work with businesses at different developmental stages particularly those at early stage. In addition to the funding, we will provide technical support, business linkages and investment facilitation,” said the AECF CEO.

The programme targets private sector companies and microfinance institutions that are commercially active. These businesses are expected to be delivering low cost, clean energy products and services that benefit the poor in rural and peri-urban Somalia as well as Internally Displaced Persons, especially women and youth. This programme aims to enable 300,000 people access clean energy and create jobs for both youth and women.

The deadline for the applications is 22nd January 2021.

For more information visit: www.aecfafrica.org/react-ssa-somalia.

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About AECF: The Africa Enterprise Challenge Fund (AECF) is a leading development finance organisation that supports businesses to innovate, create jobs and leverage investments in order to create resilience and sustainable incomes in rural and marginalised communities in Africa. Launched in 2008, AECF has invested in 292 businesses across more than 40 value chains and 26 countries in sub-Saharan Africa. We focus specifically on agribusiness, renewable energy and climate technologies, while also addressing the cross-cutting themes of gender, youth and fragile contexts. In just over a decade, we have impacted more than 27.7 million lives, created close to 24,000 jobs, and leveraged over US $740 million in matching funds. AECF is headquartered in Kenya, with offices in Côte d’Ivoire and Tanzania.

12 December 2020: Samansco Industries officially launched the Phocos Any-Grid Hybrid Inverter at an event hosted at Zimbabwe’s premier dining and events venue, Amanzi Restaurant. Samansco Industries is the local Premium Partner of Phocos, a leading German solar equipment and component supplier. The launch event was attended by German Ambassador to Zimbabwe, Dr. Thorsten Hutter, along with the local solar installer community.

Speaking at the gala event, Samansco CEO Nyasha Bamhare stated “The Phocos Any-Grid Hybrid Inverter is the fastest selling product the company has launched in its entire 37-year history. When we first saw the Any-Grid Inverter in Munich during the Intersolar Conference in May 2019, it took my business partner and I less than five minutes to decide this was a product that could transform the market for solar inverters in Africa. From its sleek, industrial design to unparalleled technical capacity, we had never seen a product with this capacity and price point that had the potential to be a mass market game changer.” Nayasha continued, “In a region suffering from acute power shortages, the Phocos Any-Grid – a true hybrid solar inverter – has the capacity to provide electricity when needed and also to save the consumer money through its smart hybrid technology. The fact that this can be done at a price point that is unmatched for this level of technology and quality is a testament to German engineering.”

German Ambassador to Zimbabwe Dr. Thorsten Hutter stated, “Climate change underlines the importance of solar energy as one source of energy that will help reduce CO2 emissions. Germany is committed to renewable energy in all its forms, be it biodegradable, hydro, wind, or solar. We strongly believe that every country needs to find its own best renewable energy source. Germany’s commitment to solar energy has led to broad-based support for the solar industry in Germany and the production of truly innovative products in solar energy. German companies are amongst the most innovative companies in the world. German engineering is world famous, but what is truly outstanding is our strong combination of research and development. This has made German companies world leaders in solar energy. The energy crisis in Zimbabwe highlights the importance of solar energy. It is tried and tested technology that will support economic growth in Zimbabwe.”

Phocos Regional Director of Sales for Africa and the Middle East Alex Hofmeyr commended Samansco for the tremendous effort they have made in establishing the Phocos Any-Grid Hybrid Inverter as the solar inverter of choice in the short time since the product became available on the world market. “In just six short months, it’s amazing to see the enthusiasm for the Phocos product here in Zimbabwe. This is truly a testament to the leading position Samansco has in the market. They have earned the trust and confidence of 500 plus local installers and retailers. Phocos is immensely proud to have Samansco as our exclusive distribution partner in Zimbabwe.” In conclusion, he added, “We are committed to helping the country meet their energy needs with what we believe to be the most advanced, true hybrid solar inverter available on the market with the Phocos Any-Grid Hybrid Inverter.”

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About Phocos AG: Phocos Group is a global company that designs, manufactures, and supplies world-class solutions for energy production, storage and conservation to enable universal access to reliable energy. Our international team of highly experienced, passionate professionals is based on five continents. This dynamic group leverages over a hundred years of market expertise to ensure the reliable and cost effective deployment of power supply solutions exceed our customer’s expectations. Our goal is to make reliable energy access possible anywhere, anytime, and for any income level. We are headquartered in Ulm, Germany, with three fully owned subsidiaries and sales offices located in the U.S., China, and India.

About Samansco: Samansco is one of Africa’s leading solar energy distributors and systems integrator with an installed user base of over 55,000 systems in 17 countries across Africa since 1982. As a leading wholesale distributor for the global leaders in renewable energy, it’s products are distributed across Southern and Central Africa by more than 1,200 solar installers and retailers. For more information, contact Samantha John (This email address is being protected from spambots. You need JavaScript enabled to view it.).

11 December 2020: The Renewable Energy Performance Platform (REPP), funded by the UK Government’s International Climate Finance, has invested £1 million into a renewables-powered battery rental company that provides affordable energy access to off-grid communities in West Africa.

UK-based Mobile Power was set up in 2013 to serve the needs of end-users that are underserved by existing rural electrification models in the region. Currently, the company has operations in Sierra Leone and Liberia, two of the poorest countries in the world where most of the population live on less than US$1.25 a day.

Following this week’s completion of a £2 million Series A funding round led by REPP’s equity investment, Mobile Power is now set for rapid expansion, with plans to enter the Nigerian market next year whilst supporting various existing partnership projects in Uganda, Zambia and Gambia.

Through Mobile Power’s innovative rental model, customers are able to rent smart 50Wh lithium-ion batteries at a low cost and in 24-hour increments. Customers can make payments either in cash or using mobile money, making the service inclusive to those without mobile money or areas with weak phone signal. And unlike many other electrification solutions, the product requires no consumer debt or long-term commitment.

The batteries are suitable for lighting, phone charging, fans, TVs and radios and are charged at solar-powered “MOPO Hubs”, providing a lower carbon option to other local alternatives, which include diesel generator-powered charging stations and battery-powered torches.

Geoff Sinclair, Managing Director of REPP’s investment manager, Camco Clean Energy, said: “Providing affordable energy access to some of the world’s poorest communities is a huge challenge for developers, but one that must be overcome if we are to meet the UN’s Sustainable Development Goals by 2030.

“Mobile Power’s novel business model provides a scalable solution that, with the support of REPP and the other Series A investors, has great potential for rapid growth and delivering far-reaching impact.”

Prior to the funding round, Mobile Power had raised approximately £1.1m in equity from early-stage investors, and a further £1.7m during 2019 in the form of innovation grants and loans.

Chris Longbottom, CEO of Mobile Power, said: “The completion of this Series A fundraise represents a vote of confidence for Mobile Power’s unique approach to energy access, particularly in those markets where traditional approaches are less viable. We look forward to scaling up and reaching many more off-grid customers.”

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About the UK’s International Climate Finance: International Climate Finance is the UK Government’s commitment to support developing countries to respond to climate change. At the UN Climate Action Summit in New York in September 2019 the UK announced a doubling of its International Climate Finance from £5.8bn over the period 2016-2020 to £11.6bn over the period 2021-2025. This places the UK amongst the world’s leading providers of climate finance. Programmes are focused on:

• Building the resilience of the poorest people and communities
• Building sustainable cities and transport systems
• Unlocking clean and affordable energy for all
• Halting deforestation and preventing irreversible biodiversity loss

Since 2011, UK ICF investments have helped over 66 million people to cope with the effects of climate change; reduced or avoided 31 million tonnes of greenhouse gas emissions and mobilised £4.1 billion of public and £2.2 billion of private finance for climate change purposes in developing countries.

About REPP: The Renewable Energy Performance Platform (REPP) works to mobilise private sector development activity – and investment – in small to medium-sized projects (typically up to 25MW). It is supported with £148m funding from the UK’s International Climate Finance through the Department for Business, Energy and Industrial Strategy (BEIS).

To date, REPP has agreed contracts with 27 renewable energy projects across 13 countries, employing five different technologies (solar home systems, solar PV mini-grids, grid-connected solar PV, run-of-river hydro, and onshore wind).

About Camco Clean Energy: Camco Clean Energy (Camco) is an investment manager that specialises in climate finance and meaningful sustainable development impact in emerging markets. Its long-established position within Africa’s renewable energy sector enables the company to provide project developers and sponsors with a trusted combination of global access and local presence, enabling them to source the right financing solutions to develop and build projects.

Camco was formed in Nairobi over 30 years ago and, since then, has provided creative finance solutions to 180 projects worth US$15 billion.

About Mobile Power: Founded in 2013, Mobile Power believes that batteries are the key unlocking energy distribution in Africa. Through the company’s smart battery hardware and Battery-as-a-Service rental platform (MOPO), Mobile Power has reached some of the poorest households in Sub-Saharan Africa with a profitable and scalable last mile business which requires no up-front payments or consumer debt, and can operate in cash based markets with little mobile money penetration.

Mobile Power is now scaling up operations across Sierra Leone and Liberia, as well as launching in Nigeria whilst continuing to support partnership projects in Uganda, Zambia and The Gambia. Mobile Power is also preparing to launch battery swap systems for e-mobility applications in 2021.

10 December 2020: The Beyond the Grid Fund for Africa (BGFA) was set up on the initiative of the Swedish Government with the goal of incentivising the private sector to provide sustainable, affordable, clean, high-quality energy services to underserved people in off-grid rural areas. In February 2021, BGFA will continue its expansion to Mozambique and invite interested energy service providers (ESPs) to compete for a funding window geared specifically towards developers of micro-grids. Successful applicants will be able to deploy innovative technology and strong business models to supply energy services tailored to customer needs and ability to pay, and to scalable generation capacity in accordance with the growth in actual demand.

The BGFA programme builds on the award-winning initial pilot phase in Zambia, the Beyond the Grid Fund for Zambia (BGFZ), and has recently closed the pre-qualification phase of the Call for Proposals in Burkina Faso, Liberia and Zambia (BGFA1) with 79 received applications.

‘’Sweden has supported the development of energy infrastructure for many years with the aim to increase access to electricity services from renewable energy sources. The entry of the Beyond the Grid Fund for Africa is an excellent step for Mozambique’s energy infrastructure and to connecting its rural communities to affordable and sustainable sources of energy,’’ says Mette Sunnergren, Swedish Ambassador to Mozambique. ‘’The model, which has been proven to work in Zambia, has been adapted to suit Mozambique’s specific requirements and electrification needs, and it will contribute to Mozambique’s goal and the Sustainable Development Goal of achieving universal access to sustainable energy by the year 2030.”

This funding window has been designed in cooperation with the Mozambican Energy Fund (FUNAE), which has contributed substantially to off-grid energy access over the last 20 years. The roll-out is expected to be implemented under a pilot licensing framework focusing on the provision of off-grid energy services within specified energy service areas. The energy services will be rolled out during a four-year period with total funding of EUR 6.7 million.

‘’The emphasis and central objective of the BGFA programme in Mozambique is to attract private sector participation and investment and to create the conditions for sustainable business models in the provision of high quality, affordable energy services to rural areas,’’ says António Osvaldo Saíde, CEO of FUNAE. ‘’With more than two-thirds of the population without access to electricity, there is significant unmet demand for modern energy services and considerable potential for expanding the off-grid energy services market in Mozambique. Business models will need to be tailored to the needs of these consumers and take into account limited disposable incomes.’’

The launch of the pre-qualification stage is expected in the beginning of February 2021 with the publication of the pre-qualification guidelines. The conditions for this second round of BGFA funding (BGFA2) will be similar to those outlined in the pre-qualification guidelines for BGFA1 and adapted for Mozambique. Interested parties can refer to this document for an overview of how the programme works, in particular with regard to:

• Eligible costs under BGFA
• Disbursement of funds
• Energy service tier matrix for micro-grids and productive use
• PQ eligibility criteria for micro-grids (applicants, financial position, professional capacity, market experience, eligible projects)
• Key evaluation criteria
• Annexes A-E

Once the pre-qualification documents have been published, applicants will be invited to register for the online application tool, available through the Beyond the Grid Fund for Africa’s website at www.beyondthegrid.africa/register/ and submit possible questions through this system.

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About BGFA: The Beyond the Grid Fund for Africa is a facility established and managed by the Nordic Environment Finance Corporation (NEFCO). NEFCO is an international financial institution focused on environmental and climate investments. BGFA is designed and 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 in developing countries.

The facility is funded by Sweden through the Swedish International Development Cooperation Agency (Sida) and Swedish embassies in the target countries. Power Africa, an initiative administered by USAID, is providing an in-kind technical assistance contribution worth approx. EUR 4 million (USD 4.5 million) over three years in order to help operationalise the initiative and develop a pipeline of commercially viable projects within the framework of BGFA. Denmark, through the Ministry of Foreign Affairs, joined the BGFA programme in December 2020 with DKK 37.5 million (EUR 5 million) to support a planned expansion to Uganda. Germany, through its development bank KfW, will join the BGFA1 country programme for Zambia (pending final approval), with a focus on mini-grids. The facility remains open to donors as a cost-effective tool to finance future Calls for Proposals through existing or new country windows and bring access to clean energy to millions of rural Africans.

BGFA supports, in particular, the objective of Sustainable Development Goal number 7, which aims to ensure access to affordable, reliable, sustainable, modern energy for all by 2030, as well as the Paris Agreement on climate change and host country priorities.

10 December 2020: The African Development Bank joined a group of 11 multilateral development banks (MDBs) and the International Monetary Fund (IMF) on Thursday in launching a first-ever joint report on financing the Sustainable Development Goals (SDGs).

The launch took place during a virtual ceremony attended by the heads of the institutions. The report is released at the end of a critical year, with the COVID-19 pandemic threatening to reverse progress on the SDGs. In response, MDBs have collectively mobilized a global response package of $230 billion between 2020 and 2021, to reduce the pandemic’s impact, of which $75 billion will be directed to the world’s poorest countries before the end of 2020.

The crisis triggered by the COVID 19 pandemic has threatened to reverse progress against the SDGs. National and global leaders have recognized the opportunity—and responsibility—to ensure that recovery efforts support the SDGs, the report said.

The report highlights selected examples of initiatives related to the 17 SDGs and efforts to “mobilize finance, create knowledge, and build capacity” for countries for their achievement. It showcases examples of how their financing directly contributes to advancing SDGs that empower people, protect the planet, foster prosperity for all, and develop sustainable quality infrastructure.

Head of the Islamic Development Bank Group (ISDB) Bandar Hajjar, whose institution led the compilation of the report, said the pandemic had highlighted the fragility of the progress countries have made toward the SDGs and underlined the imperative of fostering better and more resilient development.

“We recognize the urgency to achieve the 2030 Agenda through the work that needs to go into building a more resilient post-COVID-19 world,” Hajjar said. “The report also emphasizes the critical importance of MDBs partnerships to deliver financing, knowledge, and capacity building support for the SDGs.”

Such partnerships and coordination would include increased support for an ambitious climate action for the planet; fostering digitalization for sustainability; continuing to promote sustainable infrastructure, strengthening resilience and mobilizing finance by attracting, de-risking, leveraging and catalyzing investments of all kinds.

“This joint report reflects our collective engagement and strong commitment to accelerate progress towards the SDGs. To accelerate Africa’s development, we will continue joining investment hands across the globe,” African Development Bank President Akinwumi Adesina said.

Examples of African Development Bank initiatives, such as its Technologies for African Agricultural Transformation Program, which aims to reach 40 million farmers by 2023 and add 120 million metric tons to the African food basket, are included in the report.

The Bank’s Africa NDC Hub, established in 2018 to provide resources to countries in the region to implement the Nationally Determined Contributions (NDCs), is also highlighted. The hub is supported by18 international partners, including partner MDBs such as the Islamic Development Bank.

Key activities include developing a digital tool for policy makers to mainstream the SDGs, NDCs, and the Africa Agenda 2063 in national development plans. The Bank has also supported Cote d’Ivoire in developing an NDC investment plan, and its Africa NDC Hub hosts the ClimDev Special Fund to modernize Africa’s climate and weather observation networks.

“These are very extraordinary times…we will need to have audacious leadership, we will need to have audacious partnerships, and we will need to have audacious financing systems,” Adesina said.

The 12 organizations partnering on the report are the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the IDB Group, the International Monetary Fund, the Islamic Development Bank Group, the New Development Bank, and the World Bank Group (World Bank, IFC, MIGA).

To read the full report click here.

10 December 2020: Today, Husk Power Systems, (huskpowersystems.com), the leading rural energy company operating renewable minigrids in Asia and Africa, announced that it has achieved two industry firsts: surpassing 100 community minigrids, and serving more than 5,000 micro-enterprise customers.

Despite the economic downturn caused by the coronavirus pandemic, Husk Power has demonstrated its resilience by achieving zero service disruption and providing emergency financial support to existing and new customers. As a result, it continued to grow from March to September, seeing a 52% increase in customers in India, while revenue grew by 101% during the same period. Similar growth occurred in its Africa markets.

The 100 minigrids, located in India and Tanzania with near-term expansion to additional African markets including Nigeria, represent a more than 10-fold increase from mid-2018. Average capacity of the minigrids is 50 kW, a system size that is significantly larger than most other rural energy service providers and able to power multiple productive loads for a range of small businesses, including retail shops, factories, agricultural processing and cold storage, water filtration and schools, as well as households.

Micro-enterprise customers of Husk Power on average have seen a 33% increase in profits once connected to the minigrids, according to the company’s market research.

“We’re now able to roll out at least 2 new minigrids per week, one of the fastest growth rates in the industry, and there is still considerable room for acceleration,” said CEO and founder Manoj Sinha. “Hitting 100 minigrids is a stepping stone to becoming the first commercially viable minigrid company in the world and to doubling our minigrid fleet to 200 in the next 12 months. This is in line with our vision of reaching 5,000 minigrid sites serving 500,000 micro-enterprise customers.”

Husk Power’s rapid growth has been supported by its success in raising US$25 million in equity financing from leading investors, including FMO, Shell, Swedfund and ENGIE Rassembleurs d’Energies.

Brad Mattson, chairman of the Husk Power Board of Directors, said: “Husk Power is demonstrating what scale looks like for the minigrid sector, setting the company up for another breakthrough year in 2021, in which we plan to achieve operating profitability.“

Added The Rockefeller Foundation’s Senior Vice President for Power & Climate, Ashvin Dayal: “Even in this time of global crisis and a nationwide lockdown to control the spread of COVID-19, Husk Power Systems has been able to provide safe, reliable electricity for homes, businesses and essential services across rural India. We are proud to support their efforts through our Smart Power India initiative, and I commend the entire team for reaching this important milestone in their work to power lives and livelihoods.”

Jaideep Mukherji, CEO of Smart Power India, commented: “Husk Power’s 100th minigrid is a significant milestone along the path to achieving reliable electricity for all. Husk Power has notably pioneered the off-grid power generation and distribution model in India. Their end-to-end innovative, technology-led energy solutions have the capacity to be replicated and sustained across the globe. Minigrid services will continue to play an important part in rural India’s social and economic development, particularly in the wake of the COVID-19 pandemic. I congratulate Manoj and team for the strong leadership and perseverance that they have shown in supporting the sector’s efforts in providing good quality power to the last mile.”

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About Husk Power Systems: Founded in 2008, Husk Power Systems is an energy technology company that accelerates access to clean, modern and affordable electricity in Africa and Asia by developing and operating renewable energy minigrids. Its customer-centric service matches the growing needs of households, businesses, and community services. The company’s grid-compatible solution also supports national electrification plans. For more information, visit huskpowersystems.com.

9 December 2020: “The Bank’s partnership with IRENA will support Africa’s energy transition and our goal to achieve universal access to affordable, reliable, sustainable and modern energy in Africa by 2030.”  – Bank VP Kevin Kariuki.

“This agreement represents the type of coordinated international cooperation that is the cornerstone of the realisation of sustainable development in Africa and the achievement of Paris Agreement goals.”  – IRENA Director-General Francesco La Camera.

The International Renewable Energy Agency (IRENA), and the African Development Bank (AfDB), have agreed to work closely together to advance the continent’s energy transition through joint initiatives that support investments in low-carbon energy projects.

Under the Declaration of Intent, the two entities confirmed their wish to collaborate on supporting the continent’s energy transition under a framework of core activities. These include co-organising renewable energy investment forums as part of IRENA’s contribution to the Climate Investment Platform, and collaboration on the Bank’s annual Africa Investment Forum. Furthermore, strong emphasis will be placed on concrete support for enhancing the role of renewable energy in Nationally Determined Contributions and sustainable development objectives.

The joint declaration was signed by Francesco La Camera, Director-General of IRENA, and Kevin Kanina Kariuki, Vice-President, Power, Energy, Climate and Green Growth at the African Development Bank.

Mr. Kariuki said: “Driven by the aspiration to harness Africa’s huge renewable energy potential, the African Development Bank is today at the forefront of investing in renewable energy in Africa. The Bank’s partnership with IRENA will advance this aspiration and support Africa’s energy transition and our goal to achieve universal access to affordable, reliable, sustainable and modern energy in Africa by 2030.”

IRENA’s Global Renewables Outlook report, released earlier this year, revealed that sub-Saharan Africa could generate 67 per cent of its power from indigenous and clean renewable energy sources by 2030. Further analysis shows that the energy transition would boost GDP, improve welfare and stimulate up to 2 million additional green jobs in sub-Saharan Africa by 2050.

Mr. La Camera said: “The African continent has some of the most abundant renewable energy resources in the world and the potential to transform outcomes for millions of people through the accelerated deployment of a renewables-based energy system. Renewables will increase energy security, create green jobs, advance energy access, including clean cooking, and help build resilient African economies.

“This agreement represents the type of coordinated international cooperation that is the cornerstone of the realisation of sustainable development in Africa and the achievement of Paris Agreement goals,” he continued. “We will pursue an action-oriented agenda that puts African countries on a path to realising their full renewable energy potential.”

The declaration also provides for collaboration on the African Development Bank’s Desert to Power Initiative, which aims to mobilise public and private funding to install 10 GW of solar power by 2025 in 11 countries in the Sahel region of the African continent.

The two institutions will also engage in capacity building and knowledge exchange activities to reinforce joint efforts and cooperate on developing regional and national renewable energy case studies.

7 December 2020: Today, the Efficiency for Access Research and Development Fund announced the successful completion of the Sure Chill company’s ‘Smart Box’ project, designed to make domestic refrigeration more efficient and affordable in developing countries.

The Cardiff-based cooling technology company has developed an innovative refrigerator control platform that can be integrated with solar home systems. The project received funding from UK aid through the Efficiency for Access Research and Development Fund in 2019.

Many people living in developing countries cannot afford appliances available on the market, including refrigerators. In Kenya, for example, an off-grid refrigerator and system can cost at least US$1,000. As a result, only 4% of households without access to the electrical grid in sub-Saharan Africa own a refrigerator.

Having identified this need, the Efficiency for Access Research and Development Fund supported Sure Chill in developing a prototype device that could be scaled for mass production to reduce the costs of off-grid domestic refrigeration, while improving overall system performance. Sure Chill estimates that the integration of the ‘Gen2 Smart Box’ into its off-grid domestic refrigerator results in an $84 cost reduction for customers.   

Sam Mann, CEO Sure Chill Global, commented:

‘The Efficiency for Access Research and Development Funding was pivotal in enabling Sure Chill to develop its Smart Box refrigeration control platform. This has led to significant reductions in the cost of off-grid domestic refrigeration, an important step towards unlocking universal and clean access to refrigeration.’

The first version of the smart controller developed by Sure Chill, has already been integrated into 90 domestic refrigerators delivered to Kenya for a sales trial with a solar home system provider, which is working across sub-Saharan Africa. Larger production runs are planned for 2021 and will incorporate the GEN2 Smart Box controller, which is being finalised for full production.

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Efficiency for Access: Efficiency for Access is a global coalition working to promote high performing appliances that enable access to clean energy for the world’s poorest people. It is a catalyst for change, accelerating the growth of off-grid appliance markets to boost incomes, reduce carbon emissions, improve quality of life and support sustainable development. Efficiency for Access consists of 15 Donor Roundtable Members, 10 Programme Partners, and more than 30 Investor Network members. Current Efficiency for Access Coalition members have programmes and initiatives spanning 44 countries and 22 key technologies.  

The Efficiency for Access Coalition is coordinated jointly by CLASP, an international appliance energy efficiency and market development specialist not-for-profit organisation, and UK’s Energy Saving Trust, which specialises in energy efficiency product verification, data and insight, advice and research. For more information visit: efficiencyforaccess.org.

7 December 2020: ARE Member SunCulture, a Kenya-based technology company and leader in solar power systems, water pumps, and irrigation systems for smallholder farmers, closed a Series A investment round of USD 14 million. ARE Member Energy Access Ventures (EAV) led the round and was joined by Électricité de France (EDF), Acumen Capital Partners (ACP), and Dream Project Incubators (DPI). EAV is furthering its investment after having participated in SunCulture’s 2017 seed round, while EDF has supported SunCulture since 2018 both as an investor and as a business development partner, primarily in West Africa where EDF is a leading player in off-grid solar systems.

SunCulture offers comprehensive solutions tailored to smallholder farmers, combining market-leading technology with Pay-As-You-Grow (PAYG) financing and value-add services. As the first company to commercialize solar-powered irrigation in Africa, SunCulture currently reaches customers across Kenya, Ethiopia, Uganda, Zambia, Senegal, Togo, and Cote D’Ivoire. With these funds, SunCulture is in a position to accelerate direct sales in Kenya, continue to expand internationally, and fund existing product improvements and new product innovation.

In Africa, 80% of families depend on agriculture for their livelihoods, but just 4% use irrigation, while the remainder of households rely on increasingly unpredictable rainfall. This challenge is compounded by the reality that over half the population in sub-Saharan Africa lacks access to a reliable and affordable source of energy. SunCulture’s systems enable customers to increase their agricultural productivity while accessing a steady supply of water and clean energy for household use. Farmers can grow their incomes 5-10x through increasing yields, growing higher-value cash crops, cultivating more of their land, and raising more livestock.

Samir Ibrahim, SunCulture’s CEO and Co-Founder, underscores the urgency and impact of addressing affordability in a bid to eradicate food insecurity across the continent, “Now more than ever, scaling access to clean energy and water is critical for food security, smallholder farmer livelihoods, and climate resilience. This is essential to the wellbeing of rural households, as well as farmers’ ability to support themselves in uncertain times. This equity raise puts us in a position to dramatically accelerate our growth and international expansion. We’re thrilled to work with this phenomenal coalition of investors, who have a deep understanding of our business and share our commitment to reaching underserved communities.”

Ekta Partners acted as the exclusive financial advisor for this transaction. CrossBoundary provided additional advisory support, including an analysis on the market opportunity and competitive landscape, under the United States Agency for International Development (USAID)’s Kenya Investment Mechanism Program.

4 December 2020: The Board of Directors of the African Development Bank has approved a $20 million concessional investment from the Sustainable Energy Fund for Africa (SEFA) to establish the COVID-19 Off-Grid Recovery Platform (CRP). The $50 million blended finance initiative, will provide relief and recovery capital to energy access businesses, supporting them through and beyond the pandemic.

The platform is anchored on a partnership with three specialized energy access fund managers selected through a competitive process: Triple Jump, Lion’s Head Global Partners, and Social Investment Managers and Advisors.  The $20 million concessional envelope will be blended with their own capital and instruments, leveraging $30-$40 million in complementary commercial funding and enabling more affordable debt products. Through these partners, the recovery platform will support energy access companies commercializing and deploying solar home systems, green mini-grids, clean cooking and other decentralized renewable energy solutions. 

“This initiative underlines the African Development Bank’s commitment to the accelerated growth of Africa’s decentralized energy industry, based on renewables, as a key driver for universal energy access goals,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.

Joao Duarte Cunha, Division Manager for Renewable Energy at the African Development Bank, said the platform would fill a gap in the market.

“Understanding that time is of essence, this platform will enable the provision of tailored financial solutions by leveraging existing resources, expertise and infrastructure within the sector,” he said. In addition to providing immediate relief and recovery support, the platform will lay the foundation for a green and inclusive economic recovery post-pandemic.

“We are pleased to be selected to co-manage the COVID-19 Off-Grid Recovery Platform, which will be blended with funding from the Energy Entrepreneurs Growth Fund. The combination of funding and operational support will stabilize businesses and allow for continued investments during the COVID-19 crisis, mitigating the impact of the pandemic on energy access companies and set a sustainable trajectory for growth,” said Jan-Henrik Kuhlmann, Head of Sustainable Energy at Triple Jump.

Reflecting on the potential impact of the capital provided, Asad Mahmood, CEO and Managing Partner of Social Investment Managers and Advisors, said: “CRP is a much-needed and appreciated innovative effort of the Bank to use multiple fund managers to assist with liquidity needs of good energy businesses in Africa, currently affected by the COVID-19 pandemic.”

The relief and recovery capital will support businesses in mitigating the impacts of the pandemic and ensuring a robust commercial recovery of the industry, and has been endorsed by leading industry associations, including the Alliance for Rural Electrification (ARE), Africa Mini-Grid Developers Association (AMDA) and the Global Off-Grid Lighting Association (GOGLA).

“The Bank’s new instrument is a game changer that will sustain and strengthen the African energy access sector. The platform’s innovative co-investment structure allows fund managers like Lion’s Head to focus on what we do best – mobilizing and deploying human and financial capital to unlock sustainable power for vulnerable communities while targeting critical post-pandemic issues such as local currency funding in a period of high uncertainty and volatility,” said Harry Guinness, Managing Director of the Off-Grid Energy Access Fund, part of the wider Facility for Energy Inclusion.

The Board approval was granted on 1 December.

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About SEFA: SEFA is an AfDB-managed special fund providing catalytic finance for renewable energy. SEFA’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa and Sustainable Development Goal 7. SEFA was established in 2011 in partnership with the Government of Denmark and has since received contributions from the Governments of United States, United Kingdom, Italy, Norway, Spain, and Sweden, Nordic Development Fund and Germany. SEFA is housed in the Renewable Energy and Energy Efficiency Department (PERN) under the Power, Energy, Climate, and Green Growth (PEVP) complex.

3 December 2020: Although advantageous, local currency financing for off-grid renewables projects and businesses in Africa is still limited, according to a new report released by the African Development Bank.

The report, Exploring the Role of Guarantee Products in Supporting Local Currency Financing of Sustainable Off-Grid Energy Projects in Africa, summarized findings of an in-depth study of documents on the off-grid energy and local currency financing sector, as well as interviews of energy stakeholders in the commercial and industrial and mini-grid sectors in Ghana, Kenya, Nigeria, and Tunisia.

Companies that invest in off-grid renewable energy solutions in Africa grapple with limited access to credit as a result of risk profiling that is of concern to providers of local debt financing. Where credits are offered, the interest rates can be extremely high.

There are potential advantages in using local currency debt financing for off-grid renewables projects and businesses to mitigate foreign exchange (FX) risks in the African continent. With the emergence of leasing and solar-as-a-service providers, there is the need for credit enhancement products to assess the availability of local currency finance for sustainable energy projects in Africa and the obstacles developers face in tapping into local financial and capital markets.

“Engaging with local currency markets to provide access to long-term local currency funding will allow borrowers to reduce currency and interest rate risks,” Dr. Daniel Schroth, Acting Director for Renewable Energy and Energy Efficiency, said in opening remarks made at the virtual launch of the report on 25 November.

Countries are facing the dual objective of increasing the availability of energy to households and businesses while decreasing the dependency on fossil fuels by adopting renewable or low carbon technologies. However, local currency finance providers have limited appetite for investing in the commercial and industrial sector, other than through traditional on-balance sheet corporate lending to established players, the report reveals.

The African Development Bank through the Sustainable Energy Fund for Africa (SEFA), actively searches for solutions that can help to catalyse investments in Africa to scale-up the deployment of decentralized energy access solutions.

Wale Shonibare, Director, Energy Financial Solutions, Policy and Regulations, at the African Development Bank said, “the participation of local banks and capital markets in Africa’s off-grid sector is still extremely limited. Therefore, mobilizing local capital into Africa’s energy sector is important for developers deploying off-grid solutions."

One approach to stimulating local currency lending is through credit enhancement products that provide risk mitigation for local currency lenders and institutional investors.

Alastair Smith, Co-founder & Head of Nigeria Operation of Power Gen Renewable Energy, argued that interest rates on local currency debt financing is extremely high in countries that PowerGen operates. "If we are able to use local currency, it will be preferable for us, but we are unable to get local currency support that is affordable in most countries.”

While there are challenges, the panellists also highlighted there has been progress with developing and launching more innovative structured solutions. Eric Mboma, Director of Subsidiaries and Affiliates at the Africa Guarantee Fund indicated that that through their Green Guarantee Portfolio, they provide a risk sharing offer for financial institutions, “taking up to 55% of risk in the sector to incentivise financial institutions to lend.”

Per Van Swaay, Director at the TCX Fund, said that they have supported local currency financing in a number of off-grid renewable energy projects across Africa. This intervention ensures successful implementation of off-grid energy projects.

For Chinua Azubike, CEO, InfraCredit, “The ability to mobilise local currency financing is possible. We have provided local currency guarantee for energy projects, estimated at about 134MW capacity. This has increased from $50 million to $146 million today.”

Anshul Rai, the Founder & CEO of the Nigeria Infrastructure Debt Fund also made a strong case for local currency financing and limited guarantee products in the African continent. “Guarantee products can play a role, but we don’t see it as a replacement for undertaking proper financing scheme.”

Clemens Calice, the Co-CEO of Lion’s Head, highlighted that through the Facility for Energy Inclusion, they provide US dollar and local currency debt financing. He emphasised the importance of having a structured insurance and guarantee program alongside to support local debt financing.

Exploring the Role of Guarantee Products in Supporting Local Currency Financing of Sustainable Off-Grid Energy Projects in Africa aims to provide information, analysis, and insights on local currency opportunities for off-grid energy businesses and projects, with the objective of stimulating private sector initiatives in the off-grid space.

Download the report here.

3 December 2020: Rensource, a leading West African renewable energy services provider, announced today its entrance into the provision of Commercial & Industrial (C&I) solar with a project in partnership with the Norwegian impact investment company, Empower New Energy, to deploy a 700 KWp solar photo-voltaic plant to Nigeria´s largest egg producer, Premium Poultry Farms. The power plant, ground-mounted on Premium Poultry’s farm, will generate ca. 1 gigawatt hour of clean energy annually, save up to 25 000 tons of CO2 in its lifetime and contribute to Abuja´s fight against local air pollution.

This landmark project is one of the largest power purchase agreements for solar energy signed in the C&I sector in Nigeria and will represent the poultry industry’s largest single clean energy project. The power plant is expected to operate for at least 25 years, according to the power purchase agreement signed between the off-taker Premium Poultry and Empower.

“This solution for Premium Poultry Farms, Nigeria’s largest egg producer, demonstrates our ability to meet the energy needs of a diverse array of industrial customers. We are honored to supply affordable clean energy to further grow Nigeria’s critically important agricultural sector, while cutting emissions” said Ademola Adesina, founder and CEO of Rensource.

Premium Poultry Farms produces ca. 600 000 eggs daily and has its own feed mill, making it the country´s largest egg producer. The company prides itself in distributing and nourishing Nigerian families with quality eggs across the country. This project, which is due to commence operations in December 2020, will have an important footprint in terms of sustainability. It will save up to 840 tonnes of CO2 emissions per year and create 40 jobs during its construction and operations phase.

“We take immense pride in being good stewards of the environment and are pleased to further enhance our efforts with this solution. “Sustainability is at the heart of the farm’s philosophy”, says Alhaji Mahey Rasheed, Chairman of Premium Poultry Farms. “This project also allows us to benefit from the substantially lower energy costs offered by the solar PV technology and we are excited to become the largest solar-powered poultry farm in the country”.

Terje Osmundsen, Founder and CEO of Empower New Energy, added that “Empower is very pleased to collaborate with Rensource Energy in order to finance this project with Premium Poultry Farms, which reflects the success, dynamism and growth of Nigeria’s renewable energy sector. Our investment fund is poised to accelerate Africa’s transition to clean energy and this is evident in how quickly we have able to mobilise financing for this crucial project.”

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About Rensource Energy: Rensource is a leading West African provider of renewable energy related services. Rensource is focused on developing, financing, and managing critical infrastructure for African enterprises. The company is located in Lagos, Nigeria. For more information visit https://www.rensource.energy/.

About Premium Poultry Farms: Premium Poultry Farms is one Nigeria’s largest poultry farms. The farm has the most automated operating process of any farm in the country and currently produces over six-hundred-thousand eggs daily. The farm is located Abuja, Nigeria.

About Empower New Energy (Empower): Empower New Energy is an award-winning impact investment company investing in small and medium-scale renewable energy projects across Africa through its investment vehicle Empower Invest. The investors in the fund include Norfund (Norway’s Investment Fund for developing countries), ElectriFI (the electrification Financing Initiative, funded by the EU) and a group of private impact investors. Empower operates from its offices in Oslo, London, Nairobi and Accra, and through local partners in Nigeria amongst others. For more information visit: https://www.empowernewenergy.com/.

• 600 million people across Africa lack access to affordable, reliable, sustainable energy;
• Mini-grids are a disruptive new approach that could accelerate energy access;
• The International Energy Agency (IEA) forecasts that mini-grids will be the least cost method to connect at least 264 million people by 2030;
• But to unlock their potential, we need new ways of financing mini-grids. CrossBoundary Energy Access is open sourcing its project financing approach for mini-grids to accelerate universal energy access in Africa.

2 December 2020: CrossBoundary Energy Access (CBEA), Africa’s first project financing facility for mini-grids, is open sourcing their approach to investing infrastructure capital into mini-grids across Africa.

The UN Sustainable Development Goal 7 commits the global community to achieving universal energy access by 2030. Time is running out to achieve this goal. 600 million people in Africa still don’t have access to electricity.

Mini-grids are a new and disruptive way to achieve energy access. The International Energy Agency (IEA) forecasts that mini-grids will be the least cost method to connect at least 264 million people by 2030. Mini-grids are ready to scale in Africa but are not yet attracting the finance they need.

Mini-grids are infrastructure. Like traditional infrastructure, they form the basic physical systems of a nation—transportation, communication, water and power. They therefore need long-term, low-cost capital just like other infrastructure assets.  However, traditional approaches to infrastructure finance are hard to apply to mini-grids. Unlike traditional infrastructure, mini-grids are small, distributed and serve customers directly, rather than government off-takers. To finance these new and disruptive assets, the mini-grid sector needs new models of financing that allow infrastructure capital to flow into the underlying assets.

CBEA has developed a new model of project financingto enable this transformative shift in financing. To design and launch this model, CBEA worked with their partners Ceniarth, Camco Clean Energy, DOEN Foundation, Foley Hoag, Norton Rose Fulbright, PowerGen Renewable Energy, the Renewable Energy Performance Platform (REPP), Rockefeller Foundation, Shell Foundation, Standard Microgrid, and UK aid. Now, to accelerate energy access, this approach needs to be adopted more widely. However, project finance has high barriers to entry. Complex, detailed, and interlocking financial models and project contracts are required to create bankable projects.

To address this, CBEA is open sourcing the core components of its financing approach:

1. A white paper that sets out the financing structure and guiding principles, the typical challenges and risks encountered in implementing the structure in practice, possible improvements to the model, and recommendations for investors, developers, donors, and governments.
2. Term sheets for the project contracts and the corresponding project finance model, which will be made available in the February 2021.

CBEA is open sourcing their approach to mini-grid financing so others can use and improve on it.  CBEA believes the competition this poses to its future growth is far outweighed by the potential to achieve the goals CBEA and their partners share, which is to deliver affordable and reliable power for all by 2030.

Humphrey Wireko, associate principal at CrossBoundary Energy Access, said, “We’ve seen how the Open Source movement transformed the software industry. The best innovations in software now impact far more people, and far more quickly. We believe this radical approach to information sharing can do the same for financing energy access.”

According to Matt Tilleard, co-founder and managing partner at CrossBoundary, “This approach won’t be the best for every financier or mini-grid developer. But we do think that we have created valuable intellectual property in adapting traditional project finance for the distributed nature of mini-grid assets. We believe that we will accelerate access to energy globally by proactively sharing that knowledge, and more importantly, collaborating with others to improve on it.”

“We are excited to launch the open source initiative because we see finance as one of the critical building blocks the sector needs to scale. It ensures that our funding to CBEA unlocks maximum impact and it underpins the other sector-building work Shell Foundation has supported: developers to build and operate mini-grids, the African Mini-Grid Association (AMDA) to work with governments on innovative regulation for mini-grids, and the Universal Electrification Facility (UEF) to bring in the public capital the sector needs to scale” said Emma Miller, head of mini-grids at the Shell Foundation.

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About CrossBoundary Group: CrossBoundary Group’s mission is to unlock capital to make a strong return and a lasting difference in underserved markets globally. We have over 90 professional staff and offices in Accra, Bamako, Bangkok, Dakar, Dubai, Johannesburg, Lagos, London, Nairobi, Tunis, New York City and Washington D.C. CrossBoundary Advisory provides a range of due diligence and transaction services, across a range of sectors in underserved markets globally. CrossBoundary Energy was launched in 2015 and is sub-Saharan Africa's leading investment platform for C&I solar. For more information visit www.crossboundary.com.

About CrossBoundary Energy Access: CBEA was launched in January 2019, with funding from Ceniarth and Rockefeller Foundation as Africa’s first project finance for mini-grids.  CBEA invests long-term equity and debt into mini-grids through a project finance structure, delivering first time grid-quality power to rural households and businesses. For more information visit www.crossboundary.com/energy-access/.

30 November 2020: The Economic Community of West African States (ECOWAS) held its fourth annual Sustainable Energy Forum (ESEF 2020) from 24-26 November 2020. Due to the coronavirus pandemic, this year’s ESEF was held virtually under the high-patronage of His Excellency, Mr. Jean-Claude Kassi Brou, President of the ECOWAS Commission.

The ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) instituted the ECOWAS Sustainable Energy Forum (ESEF) in 2017 to support the investment and policy initiatives of member states in the regional renewable energy sector. Since its inception, the forum has proven to be the largest sustainable energy gathering in the West African region.

Held in partnership with the Alliance for Rural Electrification (ARE), this year’s event attracted nearly 1,200 registrations including energy experts as well as diverse group of stakeholders, financial institutions and civil societies, highlighting the collective progress in achieving the ECOWAS regional sustainable energy targets while emphasising the remaining challenges faced by stakeholders in building a robust renewable energy and energy efficiency market.  

ESEF 2020 which coincides with ECREEE’s 10-year anniversary as a specialised institution with the mandate of promoting sustainable energy, raised awareness on the progress made by ECOWAS member states towards achieving sustainable energy targets for 2030.

Addressing the audience at the opening ceremony, the ECOWAS Commissioner for Energy and Mines, Douka Sediko described the renewable energy opportunities in the ECOWAS region as huge and called for a concerted effort in mobilising necessary finances. Commissioner Douka informed dignitaries that ECOWAS has put in place an enabling environment for investment in the region and therefore encourages businesses to always reach out to them for collaborations to expand the renewable energy and energy efficiency market.

Several high-level panel discussions were organised during the forum over three days – some of which focused on the role of off-grid renewables in achieving SDGs in the ECOWAS region. The Minister of Energy from Burkina Faso, Dr. Bachir Ismael highlighted the importance of renewable energy saying that the provision of electricity in rural areas goes hand-in-hand with growth of the local economy. This, he said will help the rural people in member states get themselves out of poverty.

The CEO of the Alliance for Rural Electrification (ARE) David Lecoque expressed his contentment as co-organisers of ESEF 2020 and is a testament of the increased cooperation with ECREEE. Mr. Lecoque described the ECOWAS region as a prime priority for ARE as 47% of its population continue to lack access to electricity. He noted that strong decentralised renewable energy sectors at the national level are key to achieving SDG-7 in the ECOWAS region and beyond. 

The Secretary General of RES4Africa Foundation, Roberto Vigotti also noted that “In order to achieve SDG-7, people should be placed at the centre of the agenda. He said that in order to lead an effective and inclusive green transition, we must build the next generation of investors, managers, entrepreneurs and technicians.”

Delivering his remarks, Head of Energy of Innovate UK, David Hytch said Innovate UK’s Energy Catalyst programme aimed at supporting businesses to develop highly innovative sustainable technologies and business models, thus accelerating the clean energy transition in Sub-Saharan Africa and South/South East Asia. He told delegates that Energy Catalyst accelerates the innovation needed to end energy poverty. Mr. Hytch highlighted that “crucial to delivering this is a true partnership between entrepreneurs in UK and West Africa that deliver innovative technology and business models that overcome the challenges faced in the region.”

During the Gender Session, ARE also launched its new gender publication with recommendations based on 17 case studies from members. The publication is entitled ‘Women Entrepreneurs as Key Drivers in the Decentralised Renewable Energy Sector (DRE): Best Practices and Innovative Business Models’. The publication highlights the essential role women play in energy access and sustainable socio-economic development in rural communities and serves as inspiration for innovative gender sensitive approaches to consolidate gender equality at each level of the DRE supply chain.

Addressing the closing ceremony, the Acting Executive Director of ECREEE, Bah F.M. Saho described the annual forum as another opportunity for member states to assess progress made at the national level towards achieving the 2020/2030 sustainable energy targets. He disclosed that less than 600 clean energy mini-grids are operational which falls far short of the regional target of 60,000 clean energy mini-grids by 2020 and 128,000 mini-grids by 2030. He therefore stressed the need to promote the deployment of clean mini-grids and stand-alone technologies to help increase and improve electricity access rate and appealed to partners and donors to collaborate with ECREEE to attain these objectives.

Mr. Saho thanked the co-organisers, their traditional partners and donors as well as participants for their time and efforts in making ESEF 2020 virtual forum a resounding success and thanked the ECOWAS Commission President, the ECOWAS Commissioners for Energy and Mines as well as Finance for their immense support on the implementation of ECREEE programmes. He also paid glowing tributes to ECREEE’s pioneer Executive Director, Mahama Kappiah, for his exemplary leadership and vision that led to the establishment and smooth functioning of ECREEE since its establishment.   

This year’s forum was co-organised by ECREEE and ARE, the decentralised renewable energy industry association delivering innovative clean energy solutions throughout Africa, and supported by GET.invest, a European programme which mobilises investments in decentralised renewable energy, supported by the European Union, Germany, Sweden, the Netherlands, and Austria. ESEF2020 is also supported by GIZ and the Austrian Development Cooperation and sponsors such as Energy Catalyst and RES4Africa.

Over 700 participants registered for matchmaking meetings, organised by GET.invest giving them an opportunity to connect with potential business partners, investors and relevant experts to advance projects through virtual interactions.

26 November 2020: EDP is preparing to sponsor new clean energy access projects in five African countries through the A2E Fund. The third edition of this financing program has €500,000 and two new target locations.

The focus on projects promoting access to renewable energy in developing countries is one of the commitments that prompted EDP to roll out yet another edition of the A2E (Access to Energy) Fund. With a budget of half a million euros, this financing program was created to sponsor clean energy projects in Mozambique, Nigeria, Malawi, and, for the first time, Angola and Rwanda.

In this third edition - aimed at both for-profit and non-profit organizations - the Fund will give each project €25,000 to €100,000. Applications open this Thursday, November 26, and run until January 10. The results will be announced in April 2021. Applicants will then have one year to implement their projects.

As in previous editions, the program's five priority areas are education, health, agriculture, business, and community. Evaluation criteria include social impact, partnerships, sustainability, scalability, and financial viability.

With this new edition of the A2E Fund, EDP reaffirms its commitment to sustainability and the fight against energy poverty, which still affects more than one billion people. Since it was launched in 2018, this financing program has received more than 260 applications and allocated about €1 million to projects that use renewable energies to bolster the social, economic and environmental development of communities in remote areas. It is estimated that the projects sponsored by this EDP program over the past three years - which are available here - have directly benefited the lives of over 55,000 people - and, indirectly, of more than one million people.

The choice of regions covered by this EDP fund is also related to the company's A2E strategy, which prioritizes investment in sub-Saharan Africa. Companies whose sustainability projects have received funding from EDP in recent years include SolarWorks!, which sells decentralized solar energy solutions in Mozambique and Malawi, and Rensource, which develops and manages mini solar energy grids in Nigeria. Such investments are in line with EDP's long-standing commitment to supporting renewable energy projects and sustainability solutions that ensure everyone's access to energy.

• The regulations and more information about the third edition of the A2E Fund are available here.

23 November 2020: The United States Government, through the United States Agency for International Development (USAID) and the Power Africa initiative, has awarded three companies in Madagascar a combined $1.2 million in grant funding to develop mini-grids that will bring electricity to more than 5,200 rural homes and businesses.  These grants are part of the U.S. Government’s $3 million effort to increase energy production and electricity access in Madagascar.  Since 2018, the initiative has helped more than 57,000 people gain access to electricity and will, by 2022, provide electricity to over 400,000 people.

Only 5% of Madagascar’s rural communities have direct access to electricity despite the country’s wealth in renewable energy sources like solar, wind, and hydroelectricity.  Access to remote regions can be difficult, which is why Power Africa has focused its efforts on solar home systems and mini-grid development, in conjunction with the Ministry of Energy, the Rural Electrification Agency (ADER), and the private sector.  Mini-grids are particularly critical tools to accelerate development in rural communities.  By increasing access to electricity, they enable businesses to adopt modern services and machines like irrigation pumps and cold storage that help businesses grow and create jobs.  Although Madagascar has strong expertise in developing mini-grids, many companies find it difficult to obtain financing.  Recognizing this funding gap as a key barrier to rural development, USAID and Power Africa, responded by issuing this grant opportunity. 

Power Africa launched the Madagascar Mini-Grid Development Grant Program in May 2020.  The grant, implemented by Power Africa’s Southern Africa Energy Program (SAEP), will support mini-grid developers who have obtained concessions from ADER but are struggling to secure funding to implement their projects; while developers with existing mini-grids are expected to use the grant to connect additional households to the grid.  This project supports the Government of Madagascar’s target to reach 50% electricity access nationally by 2023.

Seventeen companies applied for the grant.  Following a thorough review process, grants were awarded to: Autarsys Madagascar, Hydro Ingenierie Etudes Et Realisations (H.I.E.R), and Henri Fraise Fils & Cie.  Combined, these grants will bring electricity to more than 28,000 people in three regions of the country: Amoron'i Mania, Atsimo Andrefana, and Boeny. 

Autarsys Madagascar and Henri Fraise Fils & Cie will build hybrid mini-grids that combine solar panels and battery storage, while Henri Fraise Fils & Cie, will build a new 100kWp solar mini-grid.  H.I.E.R. will extend an existing hydro-powered mini-grid as part of the Presidential 100 Villages for Rural Electrification Project.

Under Power Africa, SAEP has targeted 11 countries including Madagascar to promote investment in the energy sector and help participating countries increase energy generation, transmission, and distribution.  Through this program, the United States is helping Madagascar reach its energy goals by supporting on-grid hydroelectric projects, off-grid solar home systems, and mini-grid development.  SAEP is also partnering with the School of Engineering at the University of Antananarivo to increase local expertise in mini-grid developments. 

In September 2020, Power Africa also awarded $240,000 to the French-Malagasy social enterprise Nanoé to power 35 rural health clinics serving 140,000 patients in northeastern Madagascar.

These projects are part of the U.S. Government’s effort to expand access to electricity in Madagascar but also fit into the larger development goals of reinforcing democracy and government capacity, strengthening commercial and economic ties, and promoting sustainable self-reliance.  To this end, USAID spent about $114 million last year on health, environment, energy, food security and humanitarian assistance in Madagascar.

• Bboxx secures loan with FEI OGEF to accelerate energy access in the Democratic Republic of Congo.

19 November 2020: Bboxx, a next generation utility, has secured a $4 million loan from the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI OGEF), a debt fund managed by Lion’s Head Global Partners (LHGP).

The loan will accelerate Bboxx’s operations in the Democratic Republic of Congo (DRC) across Kivu, Ituri and Tshopo provinces with ambitions to expand further in the country. Currently, only around 19% of the DRC population have access to electricity, and for those that do have access, electricity can be unreliable1.

The DRC is already a core market for Bboxx, who manufacture, distribute and finance decentralised solar powered systems in developing countries. The company has positively impacted many lives through access to clean, reliable and affordable energy – and this new funding will provide the opportunity to further increase Bboxx’s impact in the DRC. Earlier this year, Bboxx announced a memorandum of understanding (MoU) with the DRC Government, with the aim of bringing clean energy to 10 million citizens, equivalent to 10% of the population.

This debt financing from FEI OGEF builds on the Fund’s $8 million loan made in May 2019 to turbocharge Bboxx’s energy access plans in Rwanda. FEI OGEF is a USD$100 million blended finance debt fund that provides predominantly secured financing to support the growth of innovative companies in the off-grid energy sector, and it is part of the African Development Bank (AFDB) flagship initiative, Facility for Energy Inclusion.

This deal comes at a time of significant growth for Bboxx, as this year it celebrates its 10th year in business and reached a milestone of transforming over one million lives through access to energy.

Mansoor Hamayun, CEO and Co-Founder of Bboxx, commented: “Building on our productive relationship with FEI OGEF and Lion’s Head Global Partners highlights investor confidence in our business model. It is a positive step in the right direction in securing more funds to help tackle the global energy access gap and make progress towards meeting UN Sustainable Development Goal 7 – energy for all.

“We have substantial operations and a proven track record in the DRC, having signed an important MoU with the DRC government at the beginning of the year. As we embark on the next phase of our ambitious growth journey, we look forward to putting these funds to good use by helping to transform even more lives and unlock potential through access to clean energy.”

Harry Guinness, Managing Director at Lion’s Head and OGEF Fund Manager, added: “The OGEF team remains impressed with Bboxx’s mission, technology and scale – and we are excited to expand our role in their growth in challenging markets by boosting operations in the DRC. This transaction was a real team effort – owing thanks to partners at the World Bank and local funders – and the collaboration and effort underscores OGEF’s commitment to increase debt financing in Africa.

“We look forward to continuing to contribute to Bboxx’s substantial achievements in expanding access to clean energy through much-needed scalable capital. This transaction sets another standard and we’re driven to adapt, learn and replicate it with borrowers in the sector across Africa.”

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About Bboxx: Bboxx is a next generation utility, transforming lives and unlocking potential through access to energy. Bboxx manufactures, distributes and finances decentralised solar powered systems in developing countries. It is scaling through forging strategic partnerships and its innovative technology Bboxx Pulse®, a comprehensive management platform using IoT technology. Through affordable, reliable, and clean utility provision, Bboxx is bringing people into the digital economy, creating new markets, and enabling economic development in off-grid communities and those living without a reliable grid connection. The company is positively impacting the lives of more than one million people with its products and services in over 35 markets, directly contributing to 11 of the 17 United Nations Sustainable Development Goals.

So far, Bboxx has deployed more than 350,000 solar home systems. Bboxx has over 800 staff across nine offices including in Democratic Republic of Congo, Kenya, Rwanda, and Togo, with its head office in the UK and its manufacturing operations in China. In 2019, Bboxx was the winner of the Zayed Sustainability Prize in the Energy category – testament to the way the company is making a meaningful difference to people’s lives around the world.

About FEI OGEF: FEI OGEF (www.ogefafrica.com) is a debt fund managed by LHGP Asset Management and part of the AFDB’s Facility for Energy Inclusion (FEI) which was launched to increase energy access across Africa. FEI OGEF received equity funding from the AFDB, NDF, KfW, the European Commission’s blended finance facility, the Global Environment Facility and All On, a not for profit set up to increase access to commercial energy products and services off-grid energy markets in Nigeria. FEI OGEF also received debt funding from the AFDB, All On, Calvert Impact Capital and the Prudential Insurance Company of America.

FEI OGEF was established to make power more affordable for low-income households by creating an efficient market-oriented and scalable transactions across Africa. The Fund focuses on lowering overall risks and costs for off-grid energy access companies by investing through tailored, flexible credit lines in foreign and local currencies to meet inventory, consumer finance and other working capital needs. FEI OGEF provides $2-$10m loans to companies in order to expand the role of local capital markets and ultimately increase access to reliable energy for households across the continent.

About Lion’s Head Group: Lion’s Head Group (www.lhgp.com) is a frontier market investment bank. Its core activities include financial advisory, capital raising and asset management. LHGP Asset Management (LHGP AM), is the FCA regulated asset management arm of the group and the fund manager of FEI-OGEF with $500m assets under management across market development (www.alcbfund.com) and energy infrastructure (www.feiafrica.com).

18 November 2020: On November 4th 2020, GIZ and Energy 4 Impact announced the start of a new collaboration under the Water and Energy 4 Growth initiative. Energy 4 Impact is a non-profit organisation which accelerates the growth of locally-led businesses in the energy access space, to stimulate economic growth and employment in off-grid rural communities in sub-Saharan Africa. Its work involves promoting social equity, building climate-resilient economies, and affecting sustainable development outcomes in disadvantaged communities.

On November 4th 2020, GIZ and Energy 4 Impact announced the start of a new collaboration under the Water and Energy 4 Growth initiative. Energy 4 Impact is a non-profit organisation which accelerates the growth of locally-led businesses in the energy access space, to stimulate economic growth and employment in off-grid rural communities in sub-Saharan Africa. Its work involves promoting social equity, building climate-resilient economies, and affecting sustainable development outcomes in disadvantaged communities.

The Water and Energy for Food Grand Challenge (WE4F) is a joint international initiative to improve energy and water efficiency in the agricultural sector through environmentally sustainable innovations. This collaboration with Energy 4 Impact will address critical shortcomings in traditional farming methods. Farming in sub-Saharan African is typically characterised by unmechanized farming systems reliant on rainfed production. Smallholder farmers struggle with insufficient knowledge of efficient cropping techniques, agronomic and horticultural practices, limited access to farm inputs such as seeds and fertiliser, and a lack of appropriate storage facilities, technology and market data, digital services and mobile finance.

The lack of irrigation is both a symptom and cause of such problems. This new initiative will put three collaborative programmes in place in order to provide innovative clean energy solutions:

• Solar Irrigation for Smallholder Farmers in Least Developed Regions of Tanzania will boost the livelihoods and resilience of Tanzanian smallholder farmers through holistic support services, access to finance and information and increasing the uptake of small-scale solar irrigation equipment.
• The Green energy and finance to energize food production in Senegal and Benin project is split into separate work programmes for each country. Both programmes aim to improve the livelihoods and resilience of paddy rice farmers and processors through access to solar irrigation and processing technologies, technical assistance and holistic support services.

 Making farmers aware of the advantages of solar-powered irrigation is at the heart of this initiative: the programmes will improve their solar market knowledge, provide information on how energy efficiency improves profitability, demonstrate business models for scaling up, co-ordinate linkages with financial institutions for loans and suppliers for pay-as-you-go services, and furnish technical assistance. Yet beyond the acquisition of small-scale solar irrigation units, WE4F will take a holistic approach to ensure the long-term efficacy of such programmes. Therefore, the support to farmers from GIZ and Energy 4 Impact will also encompass advice on agronomy, productive uses of solar energy in post-harvest processing and routes to market.

It is anticipated that such innovative clean energy solutions will boost farm profitability, local markets and the wider agricultural sector. For smallholder farmers, it will lead to increased productivity, higher incomes, increased resilience to drought, stronger agronomic and commercial skills, diversification of crops and easier access to finance. We also envisage a ripple effect on local markets: governments in the target regions have made a commitment to support this initiative by facilitating agricultural extension work. The three programmes will also generate a wealth of knowledge that will help galvanize the use of renewable energy within the agricultural sector.