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We publish here the relevant press releases for the power sector in Africa. Feel free to join our efforts and share us any other you may have found. We'd be glad to add them to the list. Just send an email to This email address is being protected from spambots. You need JavaScript enabled to view it.


 

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6 August 2020: The investment is specifically in Standard Microgrid’s Zambia operating company. The funding will help Standard Microgrid scale its operations in Zambia to serve clean, low-carbon reliable power to more than 130,000 Zambians from underserved communities lacking access to electricity.

Of the world’s 7.6 billion people, more than 1.2 billion lack access to electricity, and 600 million are in Sub-Saharan Africa. In Zambia, 12 million out of 18 million lack power. Standard Microgrid has been one of the pioneers of Africa’s microgrid sector, using an innovative “energy-as-a-service” model to provide clean 24/7 power to rural customers, without requiring diesel back-up or the use of fossil fuels. The company currently serves power to more than 7,000 in Zambia across 11 microgrids, and is busy scaling a 150-microgrid portfolio that will bring power to ~130,000 Zambians in the coming years. It is also a founding member of the Zambia Chapter of the Africa Minigrid Developers Association.

EDF’s investment in Standard Microgrid cements its leadership position in off-grid electrification and marks the Group’s very first investment in a microgrid operator. With this transaction, EDF expands its foothold to the Zambian market which complements the company’s existing positions in solar home systems and solar irrigation in Togo, Cote D’Ivoire, Ghana, South Africa, Senegal, and Kenya. Now with active positions in each of the three methods of electrifying the unelectrified -- main grid, microgrid, and solar home systems -- EDF has a hand in the full suite of rural electrification solutions.

Brian Somers, CEO of Standard Microgrid, comments: “EDF has been in the power business for more than 70 years, and with more than 160,000 employees and a strong footprint in Africa market, EDF represents the perfect partner to support Standard Microgrid’s ambitions. Scalability and replicability are essential to durably changing rural electrification outcomes; we believe that Standard Microgrid’s remotely operated and locally managed platform is well adapted to such scale, and we look forward to working with EDF to continue to bring productive, clean, reliable power to rural Zambia and beyond.”

Xavier Rouland, EDF’s Off-Grid Department Director, comments: “EDF is very happy to invest in such a leading and innovative microgrid company. With SMG, EDF is now able to offer a full range of solutions for the key challenge of rural electrification in Africa. This demonstrates once again EDF’s commitment to develop low-carbon energy for Africa, from large powerplants and utility scale IPPs to solar off-grid solutions for residential customers. This is also a first achievement for EDF in Zambia and our ambition is to announce as soon as possible various other projects that we are currently working on in the country, especially in the hydropower and solar fields.”

Standard Microgrid used Shearman & Sterling for legal services and Stadia Capital Advisory as transaction financial advisor. EDF used Gide Loyrette Nouel and Musa for legal services.

 

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About Standard Microgrid: Standard Microgrid is a solar microgrid developer focused on providing advanced energy services to Africa’s rural poor. It has offices in Lusaka, Zambia and Johannesburg, South Africa, and relies on an energy-as-a-service model to enforce energy efficiency and deliver high-value, low-cost power to customers together with around-the-clock power availability without reliance on fossil fuels. Standard Microgrid’s partners include the Swedish International Development Agency, the DOEN Foundation, US Trade and Development Agency, USAID, and Microsoft.

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, 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. 

31 July 2020: Equator Energy, the largest owner and operator of B2B solar power plants in East Africa, reports a successful first quarter of solar power generation in Puntland, Somalia, delivering cleaner, cheaper electricity to domestic and industrial consumers.

In March 2020, Equator commissioned two solar power plants totalling 1.6 MW of installed solar capacity. These run in parallel to diesel generators and are located in two major cities in Puntland. Both systems are fully financed and owned by Equator, operating under power purchase agreements with Puntland’s largest privately-owned independent power producer (IPP), Ente Nazionale Energia Electrica (ENEE).

Each plant replaces 25 % of the cities’ power requirement with cheaper, cleaner solar energy. Together, the systems save 7,000 tonnes of CO2 per year, equivalent to the per capita annual emissions of ca. 27,000 people in sub-Saharan Africa. With the cost of diesel-generated electricity in Puntland currently between 0.40 - 0.80 USD per kWh, cheaper solar power also allows ENEE to reduce tariffs. Further savings also allow for investment in upgrading and expansion of the grid network, fuelling regional economic growth.

“Thanks to Equator’s investment-free service, we have been able to benefit from solar savings without having to divert capital away from developing our grid infrastructure,” says ENEE CFO Bashir Muse. “We are now less reliant on diesel and are pleased to see that our generators are requiring less maintenance. Equator has also enabled our technical team to gain much needed experience in solar technology, as well as providing continuous remote support to our staff. We hope that cleaner and cheaper solar energy will help us expand our customer base and enable our local economy to continue growing.”

The plants are designed, financed, constructed, operated and maintained by Equator, who have a diversified portfolio of grid-tied, diesel-hybrid and off-grid solar power plants across Africa. Equator’s fully-financed business model means clients avoid the significant up-front costs of solar, while still benefitting from cheaper, cleaner solar energy in the long-term.

This project is Equator’s first operation in Puntland, a state in the north-east of Somalia with a population of 3.5m people. The region has one of the highest daily averages of solar radiation in the world yet relies almost entirely on diesel-powered electricity generation; the Puntland government estimates that over 100,000 litres of imported diesel fuel are burned every day. The cost of fuel makes up c60% of power providers’ revenues, making reinvestment into more efficient, sustainable systems very difficult. 

In addition to the environmental cost, many IPPs operate inefficient systems, with poor-quality infrastructure. Along with a lack of scaled, interconnected grids, this leads to substantial distribution losses of up to 40% - nearly four times higher than the average rate of loss across African countries.

“This project was our first in the region and we are delighted with how smoothly it has progressed,“ says, Sebastian Noethlichs, CEO Equator. “Once our equipment was on site, the two modular installations took our team just under three weeks to complete. Puntland is an extremely exciting market for Equator Energy. With such compelling solar yield and widespread use of expensive diesel generated power, solar can deliver exceptional financial and environmental savings to companies like ENEE. We are excited about expanding our footprint with ENEE as they continue to grow in the years to come.”

 

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Equator is a privately owned, fully integrated developer, investor and operator of solar power plants, specialising in emerging and frontier markets. Based in Nairobi, Equator operates and develops grid-, diesel- and battery-tied solar power plants throughout Africa. It currently owns and operates over 10 MW of solar projects across more than 25 projects in four countries.

Equator is a joint venture between two companies: Maris and Nvision Energy. Maris is an investment holding company with more than 100m USD under management, focused on sub-Saharan Africa. Nvision.Energy is a solar developer and EPC, with more than a decade of experience delivering solar projects across Europe and Africa. 

28 July 2020: Millions of people, small holders and entrepreneurs in remote villages across Uganda are set to access reliable and cheap electricity for the first time under a new off-grid solar scheme agreed between ENGIE, through its Solar Home System company Fenix International and the European Investment Bank, one of the world’s largest financiers of renewable energy.

“Access to affordable and clean energy is important to fight poverty, create jobs and empower women and girls. The European Investment Bank is pleased to agree new support for scaling up off-grid solar deployment in East Africa under this new partnership with ENGIE.  Over a million people across Uganda will be able to access electricity for the first time that will power communications, provide light and make cooking easier. This scheme will also reduce use of kerosene, charcoal and candles to help families save money, reduce pollution and reduce the risk of accidents. Unlocking sustainable economic and social development through off-grid solar is key for Africa’s future and the EIB is pleased to back this project in Uganda.” said Ambroise Fayolle, European Investment Bank Vice President.

“At ENGIE, we see the massive potential of the off-grid electrification sector as a way to bridge energy gaps across Africa, faster and more affordably. Every day families across Africa are able to access electricity for the first time using off-grid solar technology provided by ENGIE Africa. Our new partnership with the European Investment Bank in Uganda will allow Fenix to provide ultra-affordable PAYGO systems to millions of people in villages across the country. This will provide access to clean solar power and financial empowerment. Providing access to energy in Africa is a huge undertaking but I firmly believe that universal access to energy is achievable in the foreseeable future, through smart investments in a combination of national grid extension, solar home systems and mini-grids. With our off-grid platform, we are industrializing and scaling up the development of a wide range of decentralized solutions, with a sustainable business model.  As of now, ENGIE is providing decentralized electricity to more than 4.5 million people in 9 countries through solar home systems from both Fenix and ENGIE Mobisol, as well as mini-grids from ENGIE PowerCorner.” said Yoven Moorooven, CEO of ENGIE Africa.

The European Investment Bank has agreed to provide a USD 12.5 million loan to support the deployment of 240,000 high-quality solar home systems in Uganda  by Fenix International, a subsidiary of ENGIE.

Solving the last mile challenge to provide power in remote communities across Uganda

Only one in five Ugandans living in remote and rural communities has access to reliable electricity. By scaling up adoption of off-grid solar technology this new initiative will provide economic, social, education and health opportunities for families and entrepreneurs who cannot be connected to the national electricity network.

Customers will also be able to benefit from Fenix International’s service centres that provide support in 30 languages across Uganda.

Supporting private sector growth and sustainable development in Uganda

Following the new agreement between Fenix and the European Investment Bank households, entrepreneurs and small holders across Uganda will be able to access electricity for mobile phones, solar lighting, refrigeration, radio and television. This will help farmers to sell produce, create new markets for traders and improve health.

Increased provision of reliable and affordable energy will create new opportunities for women and girls and reduce exposure to indoor pollution from current kerosene use.

“The European Union is committed to supporting sustainable economic and social development across Uganda. This new cooperation initiative between the European Investment Bank and Fenix International, a subsidiary of leading European energy company ENGIE, demonstrates the value-added of European engagement with Ugandan partners to advance the country's development vision. Harnessing renewable energy through innovative off-grid solar technology, combined with productive uses of power in rural areas, is a direct demonstration of the European Union’s green deal for Africa, providing new opportunities for millions of Ugandans.” said Attilio Pacifici, European Union Ambassador to Uganda.

Unlocking financial empowerment and overcoming currency barriers

Provision of a PAYGO model will allow families who would be unable to afford the upfront costs of solar home systems to repay the cost of equipment over years at less than USD 20 cents a day. The new European Investment Bank financing will also allow repayment of equipment purchased in US dollars in Ugandan shillings. Previously currency fluctuations hindered provision of affordable clean energy solutions to Ugandans without access to foreign currency.

“Providing hundreds of thousands of new solar home systems through the PAYGO model will allow our Ugandan team to transform communities across the country. We are proud to be the latest national off-grid power operation to be supported by the European Investment Bank and we will work tirelessly to illuminate homes and provide clean power until all of Uganda can access electricity.” said Daniel Willette, Managing Director Uganda (Fenix)

Customers will also benefit from cheaper costs and easier repayment through use of mobile banking. This will also provide other financial products and allow customers to expand existing equipment as needed.  

Building on the EIB’s renewable energy track record in Uganda and across Africa

Over the last decade the European Investment Bank has provided more than EUR 5.4 billion for clean energy investment across Africa.

In recent years the European Investment Bank has been a leading financial for the Bujagali hydropower project in Uganda, the Lake Turkana Wind Farm, Olkaria Geothermal plant and the Radiant and Eldosol solar schemes, as well as financing last mile connections in Kenya. The EIB is also supporting studies to harness hydropower to transform clean energy in Burundi and the Great Lakes region. 

ENGIE is the largest independent electricity producer in the world, and one of the major players in natural gas and energy services. The Group has more than 50 years of experience on the African continent and has the unique ability to implement integrated solutions all along the energy value chain, from centralized electricity production to off-grid solutions (solar home systems, mini-grids) and energy services. ENGIE Africa employs nearly 4,000 people, and has 3.15 GW of power generation capacity in operation or construction.  It is a leader in the decentralized energy market, providing clean energy to more than 4.5 million people through domestic solar installations and local microgrids.

28 July 2020: The World Bank Board of Directors approved today a total of $300 million in International Development Association (IDA) credits and grants to support reforms that will help promote electricity trade in West Africa. 

The West Africa Regional Energy Trade Development Policy Financing Program (West Africa Energy DPF) seeks to remove barriers to electricity trade, which will lower electricity costs for consumers, support the competitiveness of firms and improve resilience and reliability of supply. Currently, only 50 percent of the population in West Africa have access to electricity, and those who do, pay among the highest prices in the world – more than double those of consumers in East Africa. In addition, due to operational deficiencies, electricity services are unreliable, with an average of 44 hours of outages per month. 

Over the past decade, member countries of the Economic Commission of West African States (ECOWAS) have been working -- through the West Africa Power Pool (WAPP) -- towards a fully integrated power market. Within a few years, they will have completed the primary interconnectors that will link them together. The West Africa Energy DPF supports a policy reform program being implemented by Burkina Faso, Côte d’Ivoire, Guinea, Liberia, Mali and Sierra Leone, to facilitate trade in cleaner low cost electricity generated from gas, hydropower and renewable energy across borders. This will replace the more expensive electricity generated from inefficient small-scale oil-fired and diesel generation and improve the reliability of electricity services.  

“West Africa has huge potential for clean and green energy generation, which countries can unlock and pool together to bring lower cost electricity to communities and help create jobs,” says Ousmane Diagana, the World Bank Vice-President for Western and Central Africa. “The West Africa Power Pool has done the fundamental work of interconnecting national grids, and it is now time to realize the full strength of the regional power market. Coordinated policies paired with effective institutions and regulatory frameworks will help improve trust in the electricity trade and usher in a new era of affordable and reliable energy in West Africa.”  

The new operation supports a regional energy reform program set out in three pillars. The first aims to increase confidence in the enforcement of commercial arrangements by supporting payments and enforcement mechanisms relating to energy trade. The second supports the implementation of least cost investment decisions that consider regional options and that promote competition. The third supports transparency, by addressing creditworthiness of national power utilities and keeping the market informed on key investment decisions that impact demand and supply.  

“This is a landmark program for achieving our goal of having a regional energy market and I want to thank the World Bank support,” says Jean-Claude Kassi Brou, President of the ECOWAS Commission. “The West Africa Power Pool will continue to make strides and with this support, it can help member countries work together on the key coordinated policy reforms needed to deliver regional electricity trade – and therefore access more affordable and reliable electricity. By better using energy resources in the region, we expect the resulting efficient and resilient power systems to make our economies much more productive and inclusive. ECOWAS will continue to be a strong partner in realizing this goal.”

The West Africa Regional Energy Trade Development Policy Financing Program is the first World Bank operation to use the IDA Regional Window for a DPF program. It allows the World Bank to support reforms in order to reach a common objective across several countries in a coordinated manner. It represents a watershed on the regional integration agenda in West Africa by supporting the operationalization of the ECOWAS Directive on the Securitization of Cross-Border Power Trade, which was adopted in December 2018 and aimed at creating a regional power market. Across the ECOWAS region, the economic benefits of the regional power market are evaluated at $665 million per year with a reduction of one third in the average cost of electricity generation in the region.  

 

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About International Development Association (IDA): The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $21 billion over the last three years, with about 61 percent going to Africa.

27 July 2020: Ignite Power is pleased to announce a strategic fund-raising and collaboration with the Development Bank of Rwanda (BRD), the World Bank, and the Swedish International Development Agency (SIDA), enabling the further expansion of the company’s operations in the country. The new agreement will reinforce Ignite Power's efforts to provide solar solutions at the most affordable price possible, allowing millions of rural customers to enjoy clean, sustainable power in their homes for the first time.

Although numbers of people without access to electricity in the country have dropped drastically over the past decade (from over 90% of the population in 2010 to 47% in 2020), more than 6 million Rwandans still lack access to electricity in their homes. This prevents economic development and proper education for children who are unable to do homework after dark. Living without power also means using an open fire and combustible fuels (wood, coal, and charcoal) for cooking and lighting purposes, leading to massive fire hazards and severe indoor air pollution. Home electricity has become even more important during the COVID-19 outbreak with millions of people who have had to stay home during the lockdown not being able to charge their cell phones or listen to the radio.

Earlier this year, before the COVID-19 outbreak, Ignite Power launched its Extreme Affordability Program, breaking affordability records by allowing families living in remote villages to enjoy solar home systems for less than $1 (Rwf 860) per month. Since its launch and despite COVID-19, the company has successfully reached the first milestone of the program, connecting more than 7,000 Ubdehe 1 households to power. These households are added to the hundreds of thousands of people throughout Rwanda (and over 1.4 million across Africa) attaining electricity through solar home systems distributed and financed by the company.

“This structured deal is the sort of transaction that could bring the impact industry, and in this case, the distributed solar energy sector, to scale. This is the focus of our 'Billions 2 Trillions' initiative: bringing catalytic capital into these hugely important impact investments that attract institutional capital by creating a very compelling new asset class that will impact the lives of millions more people”, says Seth Merrin, Ignite Power’s lead investor.

In 2017, the World Bank and BRD signed a $48.9 million Scaling-Up Renewable Energy Program (SREP) financing agreement, aiming to increase electricity access through off-grid solutions and to facilitate the private-sector participation in renewable off-grid electrification.

“We are pleased to make our inaugural transaction of Window 4 of the Rwanda Renewable Energy Fund with Ignite Power”, says Kampeta Sayinzoga, CEO of BRD. “We trust that this financing and partnership will empower Ignite to ensure affordability, reliability and scalability of their business model. Together we will increase energy access in Rwanda to meet the Government of Rwanda’s target of universal access”.

“Facilitating private sector investment in off-grid electrification is one of the World Bank’s priorities in the energy sector in Rwanda”, says Joern Huenteler, Task Team Leader of the Rwanda Renewable Energy Fund project for the World Bank. “The new household connections financed under this first loan by the Rwanda Renewable Energy Fund to Ignite Power will be an important contribution towards achieving universal access to affordable, reliable and clean electricity—a prerequisite for Rwanda to achieve its vision of becoming an upper-middle-income country by 2035”.

”Sweden is a strong believer in the importance of partnerships between the public and the private sector to mobilize capital and innovation to meet the sustainable development goals”, says Christina Wedekull, Head of Development Cooperation at the Swedish Embassy in Kigali. “This collaboration is an excellent example of how the public and private sector can work together and how innovative instruments, such as Sweden’s guarantee facilities, can mobilize investments to increase access to affordable and clean energy for low-income households in Rwanda”.

 

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About Ignite Power: Ignite is the fastest-growing Pan-African developer of Digital Distributed Infrastructure projects, providing all communities, even in the most remote locations, with state-of-the-art, designed-for-solar. affordable solutions to their every-day needs, impacting millions of people. By massively reducing the cost of essential services such as power, water, and medical services, Ignite is leading Africa into a more sustainable and inclusive future.

24 July 2020: Can for-profit businesses provide sustainable solutions to the world’s most intractable social challenges? The question has been debated by business experts and international development professionals since the start of the twenty-first century, when the idea of social-benefit corporations first began to emerge.

Silicon Valley author Dorcas Cheng-Tozun, in partnership with d.light co-founders Ned Tozun and Sam Goldman, offers a clear answer in LET THERE D.LIGHT: yes. But the path to build a business that creates positive social and environmental impact on a global scale is filled with uncharted territory, unknowns, and unexpected challenges that test the courage and tenacity of individual leaders and their teams.

LET THERE D.LIGHT is the story of how d.light evolved from a class project at Stanford University to a multinational business that has brought solar energy to 100 million people around the world, most of whom previously relied on kerosene lamps, generators, and other unreliable and polluting sources of energy. It captures the personal drive and sacrifice of the co-founders and employees, the mistakes and circumstances that almost destroyed the company, and the valuable lessons learned in designing, manufacturing, and distributing new technologies to base-of-the-pyramid families around the world.

In her heartfelt foreword, Jacqueline Novogratz, the founder and CEO of impact investor Acumen, writes, “d.light’s story stands as a primer for anyone interested in the hard, sometimes thankless, but ultimately deeply meaningful and productive work of social change. And Ned Tozun and Sam Goldman will stand forever as two of the most successful role models I have ever met.”

This in-depth case study offers invaluable insights about topics such as customer-centered design, innovation, leadership, and working in emerging markets. It also includes a new, expanded vision for d.light by Tozun and Goldman in the afterword.

The book has been endorsed by renowned business author, blogger, and podcaster Seth Godin, who called it “a unique book about a unique company that is changing the world.” According to James Patell, emeritus professor and co-founder of the Design for Extreme Affordability Program at Stanford University, “The d.light founders, together with the organization and products they have built, are exemplars of the very best that the Stanford Design for Extreme Affordability Program has produced.”

The book is available for sale on Amazon in paperback and as an ebook.

 

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About d.light: Founded in 2006 at Stanford University, d.light is a global leader in solar energy, dedicated to providing the most reliable, affordable and accessible solar lighting and power systems for people living in the developing world. d.light provides distributed solar energy to households and small businesses in 70 countries, impacting the lives of 100 million people. For further information, visit www.dlight.com.

About the Author: Dorcas Cheng-Tozun is an award-winning writer, international communications consultant, former Inc.com columnist, and the author of Start, Love, Repeat: How to Stay in Love with Your Entrepreneur in a Crazy Start-up World. She served as the first director of communications for d.light and has written frequently about social enterprise and the intersection of business and family life. Her work has appeared in The Wall Street Journal, Inc.com, Christianity Today, the Unreasonable blog, The Entrepreneurial Leader, and dozens of other publications in the U.S., Asia, and Africa. A Silicon Valley native, Dorcas has also lived in mainland China, Hong Kong, and Kenya with her husband and two young sons. Visit www.chengtozun.com to learn more.

 

23 July 2020: Bboxx, a next generation utility, has forged a major partnership with CANAL+, the international leading pay-TV company, to provide customers with greater access to television content, news and entertainment. The new bundled offer means customers can buy a Bboxx solar home system with a television and get access to more than 100 channels and radios, such as A+, France 24 or Trace Africa, added to a selection of local channels, at an affordable price.

Bboxx manufactures, distributes and finances decentralised solar powered systems in developing countries. It is using electricity as the entry point to deliver additional services to customers and is now partnering with CANAL+ to improve customers’ experiences.

Through this partnership, Bboxx and CANAL+ have a common ambition to largely provide the underserved African households with both access to electricity and to quality TV content thanks to the bundled offer.

This is the first time CANAL+ is adapting its business model to the pay-as-you-go (PAYG) model used by Bboxx’s Solar Home Systems (SHSs), integrating their services with Bboxx’s Internet of Things (IoT) technology. As a result, the service is more affordable and accessible to underserved communities.

The partnership is targeted at rural, peri-urban and urban communities that are living off-grid or without a reliable grid connection, and the roll-out in Africa will begin in the Democratic Republic of Congo (DRC) and Togo. Through this deal, Bboxx and CANAL+ services will be accessible by several hundred thousand people in the next few years.

To date, Bboxx has positively impacted the lives of over 150,000 people in these two markets through access to energy. In the DRC, Bboxx signed a memorandum of understanding in January 2020 with the DRC Government to expand energy access to millions of citizens. While in Togo, Bboxx entered a joint venture with EDF two years ago and has worked with the Togo Government on their national electrification strategy since 2017.

Mansoor Hamayun, CEO and Co-Founder of Bboxx commented: “Our latest partnership with France’s leading pay-TV company Canal+ is an exciting milestone with significant synergies in terms of offering and customer base. It enables us to provide additional value-added services that improve the quality of life for our customers.

During Covid-19, Bboxx has been experiencing strong demand for energy – an essential need. Alongside this, the pandemic has meant more people are staying at home than ever before, so having access to news and entertainment to stay informed on current affairs while keeping entertained has never been so important. As we continue our ambitious journey, we look forward to growing alongside our international partners on our mission to transform lives and unlock potential through access to energy.”

David Mignot, CEO Africa at Canal+ commented: “We are delighted to partner with an established next generation utility like Bboxx to extend our footprint to new customers, and make television accessible to the greatest number of people by removing the barrier of access to electricity.

This is another stepping-stone in our strategy to continue expanding our services to customers in Africa, where there is significant demand for both national and international media, information, and entertainment. As we progress, we also hope to strengthen our partnership and expand our work with Bboxx across additional markets in the future.” 

As a trusted partner for customers, Bboxx is bringing more services into people’s homes for the first time. This new deal comes as Bboxx celebrates its 10th year in business, having positively transformed the lives of over one million people across Africa and Asia through access to energy. Bboxx also recently announced the launch of its new global brand at Group level, as part of its investment in the next phase of the company’s growth.

 

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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. You can find further information about Bboxx on its website at https://www.bboxx.com/.

About CANAL+ Group: CANAL+ Group is a leading media company and pay-TV operator. It is also a leading player in free-to-air television with three national channels, C8, CSTAR and CNEWS, and an ads sales agency. CANAL+ Group has a wide international footprint with a presence in Europe, Africa and Asia. CANAL+ Group totals 20.1 million subscribers worldwide, including 8.4 million in mainland France. With STUDIOCANAL, CANAL+ Group is also a European leader in the production, acquisition and distribution of feature films and TV series. CANAL+ Group is wholly owned by worldwide integrated content, media and communication group, Vivendi.

In Africa, CANAL+ has been present on the continent for more than 25 years and today covers more than 25 countries through 13 subsidiaries and more than 50 partners and distributors. With its “LES BOUQUETS CANAL+” (more than 220 channels, radios and services), the group is the leading pay TV satellite operator in French-speaking Africa. CANAL+ publishes 23 channels for the continent and has launched A+, the African series channel, as well as NOLLYWOOD TV and NOVELAS TV. The group also produces 100% African programs dedicated to its subscribers on the continent.

21 July 2020: A new briefing released by Oil Change International details how the growth of distributed renewable energy in Africa has so far failed to include locally-owned companies and initiatives. The sector has been growing rapidly since 2013 — especially for companies focused on “pay-as-you-go” solar home systems — but finance has overwhelmingly only been accessible for multinational companies that are based in Europe or North America or led by entrepreneurs from these regions, meaning profits are largely not remaining in Africa.

“As governments and public finance institutions around the world prepare historic stimulus packages in response to COVID-19, we have an important opportunity to grow distributed renewable energy in Africa”, said Thuli Makama, Senior Advisor at Oil Change International, “But we need this funding to help start locally owned renewable energy initiatives instead of just flowing to a handful of overseas companies”.

“Mini-grid and off-grid renewable energy is more cost effective and resilient than both grid-based renewable energy and off-grid fossil fuels”, said Bronwen Tucker, Research Analyst at Oil Change International, “Growing a locally owned distributed renewable energy economy is more important than ever. The pandemic has laid bare the need to build energy systems that are resilient to future crises, including the global market shocks and natural disasters we can expect to see intensify as climate impacts escalate”.

The briefing, Distributed Funds for Distributed Renewable Energy, also includes data showing international public finance for projects in Africa has overall been dramatically misaligned with energy access and climate change priorities. Only about 1-2% of international public finance for energy has gone to energy access for distributed renewable energy since 2014, and fossil fuels received more than 3.5 times the support than all kinds of renewable energy did from 2016 to 2018.

In addition to echoing long standing calls for international public finance institutions like multilateral development banks and development finance institutions to stop funding fossils and invest in renewables for energy access, the briefing outlines three new areas of recommendations for how these institutions can support the growth of locally owned distributed renewable energy initiatives:

  1. Supporting the entry of local finance institutions into the distributed renewable energy sector;
  2. Facilitating coordination, research and planning between international public finance institutions, local banks, and distributed renewable energy providers, and,
  3. Increasing support for distributed renewable energy, with an emphasis on community-owned and cooperative models.

The briefing, titled “Distributed Funds for Distributed Renewable Energy: Ensuring African Energy Access Finance Reaches Local Actors”, can be found here: http://priceofoil.org/distributed-renewable-2020.

 

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About Oil Change International: Oil Change International is a research, communication, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the coming transition towards clean energy.

16 July 2020: Loan financing stemming from the EEP Africa Catalyst window will accelerate REDAVIA’s C&I Solar Leasing Model with SMEs in Ghana and Kenya.

NDF launched the EEP Catalyst window in 2019 as a pilot to provide follow-on debt financing to successful companies from the EEP Innovation grant portfolio. EEP Catalyst is an evolution of the EEP Africa platform that builds on a decade of grantmaking and a portfolio of close to 250 early stage clean energy companies to enable scale up of commercially viable clean energy solutions.

“This first EEP Catalyst loan to REDAVIA is a clear demonstration that we can deliver on the new NDF Strategy and its commitment to deliver flexible financing and catalytic impact. It has all the ingredients that define NDF’s added value in the Nordic climate financing landscape. It demonstrates our unique mix of financing instruments and capacity to blend and match solutions to support our partners, public or private. We are proud to be standing with our partners and supporting the emergence of a greener economy, precisely at this time of Covid-19.” – Karin Isaksson, Managing Director, NDF

EEP Catalyst is designed to finance the scaling of the next generation of clean energy market leaders in Africa. Flexible early stage debt is still scarce in the sector and expansion stage loans are needed to support innovation and unlock commercial capital. 

“EEP Africa is one of REDAVIA’s longest funding relationships and this transaction proves again that long-term, trust-based relationships are the key to meeting today’s challenges. This crucial funding enables REDAVIA to continue to support companies in Ghana and Kenya with affordable, clean power so these businesses build local wealth and increase employment sustainably.” – Erwin Spolders, CEO, REDAVIA

The loan represents a financing commitment of EUR 1.5 million and supports scale up of REDAVIA’s solar power leasing model toward commercial and industrial (C&I) and SME clients in Ghana and Kenya. 

“The relationship with REDAVIA started with a grant in 2015; now we are leveraging that good experience and pivoting to a lender role. This new injection of financing enables REDAVIA to accelerate the clean energy transition in the commercial and industrial sector and scale up solar farm installations in Ghana and Kenya. It culminates a multi-year vision to establish a follow-on debt financing window under EEP Africa. We are now positioned to provide capital more dynamically to match the growth and evolving needs of companies in the portfolio.” – Charles Wetherill, Fund Manager, EEP Africa, NDF

REDAVIA’s clients in Ghana and Kenya benefit from a cost-effective, reliable and clean energy solution with minimal upfront investment and no technical skills required, supporting the reduction of carbon emissions and increasing the impact on a sustainable society.

EEP Catalyst financing will enable REDAVIA to scale up its operations and contribute to green jobs and green growth by installing 1.26 MWp and generating 1700 MWh/year of clean energy. The shift among SME and institutional clients to lower cost, clean energy consumption will lead to savings of USD 20,000/year in energy expenditures and reduce or avoid 730 tCO2e/year in GHG emissions.

 

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About NDF: NDF is the joint Nordic international finance institution (IFI) focusing on the nexus between climate change and development in lower-income countries and countries in fragile situations. Since the introduction of the climate mandate in 2009, NDF has built a track record of adding value by financing climate mitigation and adaptation projects in close interaction with its extensive network of strategic partners. NDF provides financing on concessionary terms in the form of grants, loans, and equity with an active portfolio valued at over 300 million EUR. NDF engages in both the public and the private sector, and uses financial instruments flexibly, alone or in various combinations, to match the needs of the project. 

Financing for this loan stems from EEP Africa, a multi-donor fund hosted and managed by NDF with funding also from Austria and Finland, that provides early stage grant and catalytic financing to innovative clean energy projects, technologies and business models in 15 countries across Southern and East Africa.

About REDAVIA: REDAVIA offers solar power for businesses in West and East Africa. The REDAVIA system is based on a pre-configured model, including high-performance solar modules and electrical components. It is easy to ship, set up, scale, and redeploy. Businesses benefit from a cost-effective, reliable, clean energy solution with minimal upfront investment or technical skills.

9 July 2020: Ignite Power announced the launch of the world’s first-ever designed-for-solar remote medical system as part of its product offering across Africa. This marks the culmination of two years of R&D, which the company accelerated over the last few months to be able to support rural medical teams responding to the COVID-19 crisis.

The spread of the Coronavirus throughout Sub-Saharan Africa has drawn stark attention to the various problems of rural health services across Africa. With under-developed infrastructure, the lowest number of doctors per capita in the world (as low as 2.2 per 10,000 people, less than ⅙ of the global average) and over 90% of properly trained medical staff working in the big cities and hospitals, morbidity and mortality from both communicable and non-communicable disease is the highest in the world. According to the World Bank Group, the sub-Saharan population accounts for only 11% of the global population, but bears 24% of the world’s disease burden. Achieving the level of health-care services demanded by the UN’s Sustainable Development Goals, would require an estimated investment of $25-$30 billion in the next decade, with every 10% increase in life expectancy estimated to increase economic growth by 0.4% per year.

There are 98,745 documented remote health centers in Sub-Saharan Africa, currently serving over 600 million people - 6,000 people on average per health center. The majority of the centers are severely understaffed, underequipped, and lacking the most basic infrastructure, with only 28% having access to “reliable electricity” (according to McKinsey). Due to these deficiencies, entire communities are insufficiently diagnosed and treated, with hospitals often hours and even days away. Sub-Saharan Africa is the only region in the world where communicable diseases are still a bigger mortality cause than non-communicable ones. Without a scalable, technology-based solution, bridging those gaps will remain impossible.  

Advanced diagnostics is an essential precursor to medical innovation and data-driven decision making – as was painfully apparent throughout the Covid-19 crisis. Yet the Sub Saharan region has limited access to the information needed to take the sector forward, leading to the substantial gap between developed and developing countries growing even wider.

The solar sector has been highly influential in the entire Sub-Saharan Africa region over the past decade, revolutionizing many developing economies. Using an available, affordable, and safe resource - sunlight - Ignite and other companies have connected millions of people to affordable and sustainable electricity for the first time, bringing them into the global economy and establishing powerful new business models.

Now, Ignite is making the inevitable connection between the solar and health sectors, and bringing designed-for-solar medical technology to all communities, creating an even bigger impact on the lives of millions.

Introducing the Designed-For-Solar Medical System (DSMS)

The DSMS is the world's first designed-for-solar medical system, providing the most remote health centers with reliable electricity, connectivity, and advanced, solar-based technologies, allowing for much better diagnosis and treatment. 

On top of the advanced solar systems, which allows for reliable and sustainable electricity at all locations, the DSMS includes the following technologies:

  • The SDS-16, which conducts a wide range of non-invasive blood tests and allows for fast, smart and affordable detection. The device provides laboratory-grade results on the spot, while eradicating the need for costly and lengthy laboratory tests. 
  • The Energy-Efficient X-ray Diagnostics Kit (SDS-X1), which provides high-quality imaging and interpretation on the field, addressing Covid-19, TB, and medical related emergencies. 
  • The SDS-US1, which allows remote medical teams to run advanced ultrasound tests while enjoying support and analysis, addressing pregnancy-related risks, heart and lung conditions,  and more.    
  • Advanced Connectivity Solution (via a strategic partnership with SpaceCom, a leading operator of communication satellites), enabling full online connectivity to all clinics and health centers, allowing for training, consultations, and guidance at all times. 

All devices are designated for the specific needs of remote medical teams, powered by solar energy and allow for remote support and guidance.

The DSMS devices provide vital data and analysis, based on AI algorithms, supporting local teams by raising “red flags” on patients showing suspicious indicators for a wide range of communicable and non-communicable diseases, including COVID-19. Taking only 4 minutes per test, a basic health center can diagnose up to 240 patients per day, providing them with targeted treatment, and reducing hospital patient load during the pandemic and far beyond. Accumulating to a maximum of over 7,000 examinations per month per device, every health center can serve the entire community.

“We believe that medical services are as essential as water and electricity and deserved by all, regardless of their location and financial status”, said Yariv Cohen, Ignite Power CEO. “By utilizing the most advanced technology and tailoring it to the needs of remote medical teams, we can bridge the infrastructure gap that prevents hundreds of millions of people throughout Africa from receiving the medical treatment they deserve”. 

Ignite has the capacity to deploy thousands of systems in the near future, and is aiming to impact the lives of tens of millions of people, providing host governments and health providers with real-time access to critical insights that can help with pandemic response and healthcare planning. 

“We are proud to introduce such an innovative solution, which we believe could create an impact on a vast scale", says Cohen. “Microsoft CEO, Satya Nadella, recently estimated that the Covid-19 pandemic drove ‘2 years of digital transformation in 2 months.’ That has certainly been our experience; we are looking forward to utilizing this momentum to revolutionize the healthcare sector in emerging countries, leading to a healthier future for both African rural populations and, at the same time, the solar sector”.

 

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About Ignite Power: Ignite is the fastest-growing Pan-African developer and financier of distributed infrastructure projects, providing all communities, even in the most remote locations, with state-of-the-art, technology-based solutions to their every-day needs, impacting millions of people. By massively reducing the cost of essential services such as power, water, and medical services, Ignite is leading Africa into a more sustainable and inclusive future.

9 July 2020: WaterGen and Ignite Power signed an MoU to provide remote communities in sub-Saharan Africa with clean water in an affordable, sustainable manner.

WaterGen is happy to announce a strategic collaboration agreement with Ignite Power, aiming to provide the most remote communities in sub-Saharan Africa with clean water in the most affordable, clean, and sustainable manner. Under the agreement, the companies will upgrade the technology developed by WaterGen to be powered by solar energy, allowing for timely deployment, everywhere.

As of today, over 300 million people in sub-Saharan Africa live with no access to clean, safe drinking water, leading to severe health issues and preventing economic development. It is estimated that over 80% of diseases in developing countries are caused by water-related issues, and 1 of 5 deaths under the age of 5 could have been prevented by access to clean water. In addition, in 2 out of 3 homes with no access to water, water supply is the sole responsibility of women and girls, drastically affecting gender inequality. According to the UN, over 40 billion hours are spent each year in sub-Saharan Africa collecting and transporting water.

The current partnership agreement aims to disrupt this reality. By providing access to WaterGen’s advanced technology to last-mile communities throughout Africa, powering it with solar power, and utilizing PAYGO model (enabling payment over time for the system and service), the project’s objective is to remove the main barrier of access to water today (an upfront, high cost), and provide communities with affordable, sustainable access to clean water for the first time.

WaterGen’s patented technology creates high-quality drinking water out of the air, using the revolutionary GENius heat-exchange technology, turning air into pure drinking water efficiently and economically. With a unique design and non-conductive structure, GENius is the world’s most energy-efficient heat exchange module of its kind; It produces up to five times more water per kilowatt than any other technology on the market. Utilizing Ignite’s vast operations in the region, deep understanding of last-mile communities, and technical know-how, the collaboration allows for wide-range deployment throughout the SSA region.

7 July 2020: Following the postponement of aef to October 2020, organisers hosted the digital content and networking platform ‘aef2.0’ for Africa’s energy community over the previous dates of the Forum, between 30th June – 3rd July.

Under the theme ‘Investment & Impact: Out of Response and Into Recovery,’ aef2.0 examined the effect of Covid-19 on Africa’s energy sector, responses happening across the value chain and predictions for the long-term impact on investment and project development.

Over 2000 attendees joined a series of digital panel discussions and debates featuring key stakeholders such as Power Africa, Aggreko, IFC, The African Development Bank, IEA, Siemens, Wärtsilä, Nedbank, Actis, Absa, DFC, SEforAll, and more.

4,559 messages were exchanged on the platform which allowed participants to schedule private one-to-one video meeting meetings throughout the week, with 562 meetings requested.

Panel discussions covered key topics such as how best to build resilience in live energy projects, the achievement of Sustainable Development Goal 7 (SDG7) by 2030 and the impact on energy end users such as healthcare and agriculture. Country spotlight sessions also examined the unique impact of the pandemic on energy developments in Ghana, Kenya and Morocco.

The event was designed to maintain momentum both in knowledge sharing and business development, as well as to provide deeper clarity on the direction of the sector.

 

For more information about the Africa Energy Forum in October:

Head of Marketing: Amy Offord

Event dates: 20-22 October 2020

Event location: Rai, Hall 8 – Amsterdam, the Netherlands

Organisers: EnergyNet

Email: This email address is being protected from spambots. You need JavaScript enabled to view it. | Tel: +44 (0)20 7384 8068

Visit: www.africa-energy-forum.com

1 July 2020: Businesses in Africa suffer from the world’s highest costs of electricity. Solar PV on the user’s site can slash energy costs, improve competitiveness and create hundreds of thousands of jobs, but government regulations are holding investments back.

There will be no sustainable post-Corona recovery without addressing perhaps the largest handicap of doing business in Africa. Businesses of Africa are penalized twice in terms of electricity, firstly by paying more for the world’s highest electricity costs, and secondly for having to pay for diesel back-up power when the grid is not working.

Starting with grid, it is upsetting to note that in most of the East and West African countries for which we have comparative data, businesses pay 25 to 100% more for the electricity from the grid than businesses pay in other parts of the world. The world average end-user tariff for businesses in 2019 was $0.12 per kWh. The same year businesses in Kenya paid $0.18 per kWh, and those in Uganda $0.16 per kWh. In West-Africa, the tariffs paid businesses there ranged from $0.16 per kWh in Nigeria to $0.24 in Senegal and Guinea respectively. The business tariff in Ghana was $0.19 and in Ivory coast $0.17 per kWh. In addition to the costs of electricity from the grid, businesses in Sub-Saharan Africa spend on average more than 30 % of total energy cost on fuel for back-up generators, at a cost of 0,40 $ per kWh or more depending on local conditions and logistics. 

Solar competitive 

The good news is that businesses easily can reduce their energy cost by enabling solar PV installations on their factory rooftop or ground. From our experience and analysis, businesses in Sub-Saharan Africa can reduce their daytime electricity costs by 25 – 50 %, subject to local variations in yield, costs and execution models. Access to third-party financing is regularly cited as the main barrier to rapid deployment of on-site solar in Africa. 

Finance for on-site solar energy generation is today available, including from the impact equity fund managed by Empower. But for businesses to reap the benefits, governments have a vital role to play:

  • Net-metering: Many companies don’t operate 24/7. All over the world, energy-users get paid for electricity they don’t use but inject back to the grid, but this is not yet possible in Sub-Saharan Africa. The absence of net-metering makes investments in on-site solar PV much less attractive, and leads to waste of valuable, clean electricity.  
  • Long-term contracts: In most parts of the world, the standard business model for on-site solar PV is long-term so-called private Power Purchase Agreements (PPAs) between the user and the third-party solar power provider/investor. With the PPA, the buyer is obliged to pay only for electricity that is actually generated and delivered, without having to worry about operation and maintenance. Unfortunately, with the exception of Kenya and Nigeria, PPAs are not yet allowed in most parts of Sub-Saharan Africa. (Ghana is a case “in between”, as only larger industrial users are allowed so sign private PPAs). As a consequence of these prohibitive regulations, businesses seeking third-party financing for its solar power supply must rely on rental or lease contracts, a structure generally seen as less attractive for off takers and investors.

To conclude, the regulatory environment across Sub-Saharan Africa punishes companies who seek to replace polluting fossil fuel with solar, and awards companies who continue to rely on polluting diesel back-up power. Governments can boost the competitiveness of their industry and accelerate electrification by opening their energy markets to allow for on-site solar PV generation.  Scaling local solar generation is furthermore a cost-efficient roadmap for addressing several UN Sustainable Development Goals. For every million dollars invested in on-site solar generation in Sub-Saharan Africa, 15-30 000 tons of CO2 will be saved over the next 30 years, and 50-100 jobs created. The Corona-pandemic is a crisis, but it is also a unique opportunity for Africa to put competitiveness and sustainable industrialisation on top of the agenda.

For the longer version please see the article ESI Africa has published: https://www.esi-africa.com/industry-sectors/generation/solar/op-ed-solar-to-spur-continents-post-pandemic-bounce/

1 July 2020: Five years into the African Development Bank’s (AfDB.org) ambitious New Deal on Energy for Africa (NDEA), the Bank’s investments are set to provide electricity access to around 13 million people and deliver about 55,000 km of distribution lines, and 6,700 km of transmission lines, of which 3,200 km are for regional interconnections.

The NDEA called for a substantial increase in investments to realize the Bank’s High 5 priority to “Light Up and Power Africa,” which aims to mobilize finance and expertise to expand access to reliable, sustainable energy for more than 200 million Africans through investments in power generation, inter-connections, transmission and distribution. This effort is critical to unlocking Africa’s vast economic potential, enabling the growth of value-adding industries and services, and, most importantly, unleashing the ingenuity of the continent’s 1.3 billion people.

The strategy was grounded in the recognition that partnerships are central to its success. In collaboration with African countries, the Bank’s interventions have ranged from setting up the right enabling policy environment, supporting utilities, to increasing the number of bankable energy projects. Additionally, the Bank is accelerating major regional projects and driving integration through the Program for Infrastructure Development in Africa, whilst also supporting bottom-of-the-pyramid energy access programs.

Priority was given to investments in low-carbon technologies, set to contribute to over 2 GW of additional generation capacity by harnessing the large, hydro, solar, geothermal and wind resources of the continent. Yet this is only the beginning, as much of the work to date has been centered on setting up the right frameworks to mobilize different partners and alternative forms of capital to tackle the various challenges in the sector at country, sub-regional and regional levels.

Indeed, mobilizing partnerships and rolling out countrywide energy transformation are continuous works in progress. In 2019, as testament to the Bank’s efforts in enhancing dialogue and consensus, the G5 Heads of State endorsed the Bank’s Desert to Power initiative, intended to build the world’s largest solar zone across the Sahel by adding up to 10 GW of solar generation capacity through public and private interventions. The Yeleen Solar Program in Burkina Faso – the first of dozens of similar projects expected to flourish across the Sahel region – will provide energy to 150,000 households in rural areas through solar mini-grids and solar home systems, and an additional 52 MW of grid-connected solar generation, enough to power 30,000 new households.

Achieving the objectives of the New Deal on Energy for Africa will require a significant increase in private sector investments. The Bank catalyzes more private investments into independent power producers and off-grid projects through partnerships with project developers, commercial banks, private equity funds, institutional investors and other development finance institutions. Over the past five years, the Bank’s interventions reached $1.5 billion in private sector operations, corresponding to 1.7 GW additional generation capacity through independent power producers.

In addition to mobilizing concessional resources through bilateral and multilateral sources – notably from the European Union, Green Climate Fund and Climate Investment Funds – the Bank hosts the Sustainable Energy Fund for Africa (SEFA), one of the largest multi-donor technical assistance and concessional capital funds in the continent, designed to catalyze private sector participation in renewable energy.

In 2019, the Bank converted SEFA into a special trust fund to widen its interventions into green mini-grids to accelerate energy access to underserved populations; green baseload to support clean generation capacity; and energy efficiency to optimize energy systems and reduce energy intensity. SEFA is expected to contribute to the electrification of more than 7 million households by 2030.

The Bank is also actively supporting the mobilization of commercial capital through blended finance solutions. The Facility for Energy Inclusion, which was operationalized in 2019, is a $500 million investment platform organized around two funds – off-grid and on-grid – to provide flexible debt products, including in local currency, to emerging business models in the small-scale renewable energy space. The Facility for Energy Inclusion will contribute to more than 3 million new connections by 2030.

To enhance institutional performance and improve the enabling conditions to attract much needed investments, the Bank has also implemented initiatives such as the Electricity Regulatory Index to monitor and benchmark regulatory performance against best practices, the Sustainable Utilities Transformation Agenda, to build sustainable utilities and energy institutions, and the Africa Energy Portal to provide accurate, up-to-date data on Africa’s energy sector.

In 2019, the African Development Bank reported that an additional 96 million African households (bit.ly/2CYZW0I) had gained access to electricity between 2015 and 2019, with countries like Rwanda on track to achieve universal access by 2025. Despite this encouraging progress, close to 600 million Africans still lack electricity access and achieving universal access goals under SDG7 still requires greater and swifter efforts to meet the demands of Africa’s growing population.

Addressing electricity access remains a costly enterprise, with the International Energy Agency placing the price tag at around $120 billion annually through 2040, four times higher than current levels (bit.ly/37TlIfS).

While our direct financial contribution is modest by comparison, we are confident that its judicious application to catalytic power projects, innovative financial structures, sector reform processes and acceleration of decentralized solutions will get us far in our mission.

Dr. Kevin Kariuki is the Vice President, Power, Energy, Climate Change & Green Growth, at African Development Bank.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

 

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About the African Development Bank Group: The African Development Bank Group (AfDB.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states.

30 June 2020: As countries continue to rebuild from the COVID-19 pandemic, a new guide by Sustainable Energy for All (SEforALL) shows how clean energy investment can support countries to ‘Recover Better’, and use this unique moment to reset their economies and close energy access gaps.

According to The Recover Better with Sustainable Energy Guide for African Countries that was released by SEforALL today, countries that commit to an ambitious recover better strategy today can deliver long term economic growth, new jobs, and sustainable energy for all in the long-term.  

This is particularly key for Africa after COVID-19 has highlighted the deep regional divide on energy access progress. Africa is a region full of promise and a growing economic powerhouse, yet this progress is stifled without access to sufficient, reliable and affordable energy.    

The latest data on Sustainable Development Goal 7 (SDG7) – access to affordable, reliable, sustainable and modern energy for all by 2030 – shows that progress in Africa is still off track to meet global targets. 565 million people still lack access to electricity, and a further 900 million lack clean cooking solutions. The pandemic risks setting progress even further behind.    

By acting on the enabling measures put forward in The Recover Better with Sustainable Energy Guide, countries across Africa will benefit from increased GDP, affordable energy provision, and improved agriculture, gender and health outcomes. This re-set can also spark progress at the speed and scale needed to meet SDG7 and help put the global economy on a trajectory in line with the Paris Agreement and Sustainable Development Goals.  

“COVID-19 has changed the world as we know it. As countries rebuild economies from the impact of the pandemic, they are faced with a unique, once in a generation opportunity to ‘Recover Better’ with sustainable energy”, said Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy. “There has never been a better time to invest in clean, efficient renewable energy. Countries that recover better with sustainable energy will see the pay off in the form of resilient economies, new jobs, and faster energy development. By making this investment, African countries can develop a competitive advantage.”  

Speaking on the launch of the guide, Professor Yemi Osinbajo, SAN, Vice President of the Federal Republic of Nigeria, said: “COVID-19 has presented a unique opportunity to accelerate transition to that clean, affordable, reliable and renewable energy source offered by the sun. Nigeria is committed to the full utilization of this abundant solar energy source. The Federal Government has already removed fossil fuel subsidies and included 5 million solar connections in our post-COVID economic sustainability plan – first steps to new jobs and a cleaner, healthier environment. We commend Sustainable Energy for All for producing this practical ‘Recover Better’ guide that will help African governments close the energy access gap and deliver economic growth for the benefit of our people.”

The global economy is increasingly being powered by clean and efficient sources of energy. According to research, dollar for dollar investments in clean energy creates three times the number of jobs compared to fossil fuels. Every 1,000 customers connected to decentralized energy solutions - solar home systems or solar mini-grids - supports approximately 25 jobs.  

Also speaking in support of the guide, Amina J. Mohammed, Deputy Secretary-General, United Nations, said: “Access to sustainable energy is pivotal to achieving the Sustainable Development Goals and Paris Agreement. As we work to recover better from the impacts of COVID-19, African countries have the opportunity to drive faster progress on the energy transition with efficient, renewable energy that protects the most vulnerable, delivers sustainable growth and supports climate action.”

Riccardo Puliti, World Bank Global Director for Energy and Extractive Industries and Regional Director for Infrastructure in Africa, said: "Access to energy is crucial for Africa to recover from the ongoing health, economic and social challenges caused by the pandemic. We welcome this new guide from Sustainable Energy for All that outlines ways in which African countries can seize this unique moment, and in return, unleash economic growth with clean, sustainable energy."    

As countries seek to recover better, SEforALL has highlighted key policy measures that governments should adopt to ensure a successful energy transition in this period. This includes:

  • Ease of doing business: Governments should create a supportive business environment that ensures investments are driven as fast as possible, including significantly reducing red tape, reducing the number of permits required and time it takes to get permits/waivers (if available) for renewable energy and clean cooking equipment and appliances.
  • Set robust policies and empower national institutions to drive development: Governments need to work now to establish or empower institutions such as regulators and rural electrification agencies to ensure the right frameworks are in place to successfully drive the development of renewables, increased electrification and access to clean cooking.
  • Eliminate fossil fuel subsidies: With the price of oil the lowest it has been for 18 years; governments must take this opportunity to eliminate fossil fuel subsidies. When the price of fossil fuels rises again, governments should refrain from re-introducing the subsidy.
  • Move towards cost-reflective tariffs: The natural tendency for countries will be to cut the cost of electricity, but this should be avoided. The reality is that electricity is largely consumed by wealthier residentials or by industrial/commercial clients. Governments should allow cost-reflective tariffs that allow utilities to perform better and increases investments in energy access and clean energy.

Other key elements outlined in The Recover Better with Sustainable Energy Guide for African Countries include: Invest in robust data, declare a moratorium on new coal-fired power, invest in energy efficiency and also invest in people so they can fully take advantage of new clean energy jobs.  

SEforALL has developed The Recover Better with Sustainable Energy Guide for African Countries to support African countries as they develop their post COVID-19 recovery plan and stimulus packages. The guide is part of a series which includes guides for countries the Caribbean region and Southeast Asia region due to be released soon. More information can be found here.

30 June 2020: The World Bank Board of Directors approved today a total amount of $425 million in International Development Association (IDA)* financing to support the provision of infrastructure finance in Eastern and Southern Africa. The Regional Infrastructure Financing Facility project (RIFF) aims to expand long-term finance to private firms in selected infrastructure in the power sector, as well as in the transport, logistics and social sectors. This is the first regional facility of this kind in Africa. 

Eastern and Southern Africa  suffers from ailing infrastructure, especially in the power sector. Effective power generation in the region is less than the installed capacity by 20-30 percent due to drought, lack of maintenance, and general system losses of electricity in both transmission and distribution. Such deficits cause about 2 percent loss of GDP growth in most of the countries, impeding a large number of the region’s population from access to energy. Heavy public financing of infrastructure contributes to rising debt vulnerabilities and, before the outbreak of COVID-19, nearly half of the countries in the region were in debt distress. 

“The COVID-19 pandemic threatens the development gains made over the past years”, said Ms. Deborah Wetzel, World Bank Director of Regional Integration for Sub-Saharan Africa, the Middle East, and Northern Africa. “The new operation will help address the long-term infrastructure funding gap through a regional approach focused on private financing, with the objective to mobilize about $975 million of private finance in addition to the funds provided by IDA. This requires a broader approach, including an enabling environment for private capital mobilization, sound public debt management, bankable projects, long-term finance, and risk mitigation”.

Through the Trade Development Bank (TDB) –a commercially-driven regional development bank--, the RIFF will provide long-term infrastructure finance that would contribute to job creation and would present cross-border benefits in terms of trade and investment flows or transfers of technology. It will facilitate access to debt financing for SMEs in infrastructure value chains and off-grid, by helping them to keep running and expanding to underserved markets. In the context of the COVID-19, the RIFF’s focus on off-grid solar solutions will contribute to preserve households’ livelihoods by supporting micro-entrepreneurial activities that play a critical role in income generation in poor communities.

The Project harnesses a regional approach to address the financing needs of private sector infrastructure companies, by building capacity in regional institutions, TDB and the Common Market for Eastern and Southern Africa (COMESA), to provide a longer and sustainable source of infrastructure finance and to support the enabling environment for infrastructure finance. Infrastructure is expected to be a key driver of economic recovery post COVID-19.

This is the first time IDA and the Multilateral Investment Guarantee Agency (MIGA) –the political risk insurance and credit enhancement arm of the World Bank Group— are jointly supporting a regional development bank. MIGA is providing TDB a first-of-its-kind credit enhancement of EUR 334.4 million on a ten-year loan from private commercial banks, that will help TDB expand trade finance activities. The two operations are complementary and cover TDB’s two main business lines (infrastructure finance and trade finance).

 

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $21 billion over the last three years, with about 61 percent going to Africa.

 

30 June 2020: Ministers from African countries representing about two-thirds of the continent’s energy consumption met with global energy leaders today to consider the policies and investments that can enable Africa’s energy sector to best support responses to the dual challenges of the Covid-19 pandemic and global economic recession.

Chaired by Mouhamadou Makhtar Cissé, Senegal’s Minister of Petroleum and Energy, and Dr Fatih Birol, the IEA’s Executive Director, the virtual roundtable meeting brought together 10 ministers from Africa, including the Minister of Mineral Resources and Energy of South Africa, which holds the 2020 African Union presidency, as well as ministers from Nigeria, Egypt, and Morocco, among others. 

The Ministerial roundtable also included leaders from the African Union, the United Nations, the European Commission, the International Monetary Fund, the World Bank, OPEC, the European Union, Power Africa, and the International Renewable Energy Agency.

Discussions focused on three key areas for Africa’s energy future: electricity, oil and gas, and sustainable, inclusive transitions. Participants stressed the need for sound government policies and enhanced investments to support economies and develop resilient and sustainable energy systems.

As Africa’s energy sector faces the dual impacts of the Covid-19 pandemic and global economic recession, participants agreed that sound government policies and enhanced investment are more important and necessary than ever to enhance the continent’s economic transformation; ensure sufficient, affordable, reliable energy for all citizens; and drive inclusive, just and sustainable, energy transitions. (See the Chair’s Summary)

“With its young and dynamic population, Africa has an increasingly important role in the world’s energy future. The region has long been a key part of the IEA’s work, but I am delighted that our engagement with African governments, institutions and energy companies continues to grow stronger. Today’s high-level ministerial meeting is a clear example of those deepening relationships,” said Dr Birol. “I would like to thank my co-chair, Minister Cissé, for his leadership throughout. With the challenges posed by the Covid-19 crisis, the IEA is more committed than ever to working with African countries to help them achieve more secure and sustainable energy systems for all their citizens.”

This year began with a lot of optimism across Africa’s energy sector, but continued energy progress is now uncertain as Africa – like the rest of the world – faces the wide-ranging impacts of the Covid-19 crisis. Sub-Saharan Africa is expected to enter into recession in 2020 for the first time in 25 years as a result of the crisis. Many African economies also have limited fiscal capacity and are heavily indebted, undermining their ability to absorb these economic shocks. The energy sector has not been spared.

"We will not have harmonious economic and social development in our African countries if we do not address the issue of reliable and affordable energy, especially in rural areas. The potential of the continent is enormous," said Minister Cissé. “Africa needs structural energy investments in order to develop its full potential. Africa needs be supported to participate actively in the energy transition by respecting its global environmental commitments."

"Today's highly successful Ministerial Round Table is a milestone in the new cooperation between Senegal and the IEA. The conversations during this event showed that the best way forward for the energy sector in Africa is to work together," he concluded.

Participants stressed the following top recommendations:

  • An efficient secure, affordable and sustainable power sector is vital to Africa’s economic recovery and transformation, and its ability to enhance resiliency to other challenges over time;
  • Enhancing investments in new grids, (national and mini-grids) and in the off-grid sector as well as in generation facilities are essential to ensure a resilient and reliable power sector that can drive economic recovery;
  • Setting bold energy sector priorities and plans today can enable much-needed investments to stimulate broader economic growth tomorrow, including creating employment opportunities, supporting new skill development, unleashing the creativity of African entrepreneurs across the African continent and creating wealth;
  • Africa’s oil and gas exporters, who have been severely impacted by the crisis, can seize the opportunity to re-evaluate their strategies to generate the most value and jobs across their economies and to promote broader economic diversification;
  • To secure energy supplies and development in many Africa countries, increase oil storage capacities and product stocks; upgrade refineries to produce higher quality products that are less polluting; and build local capacity and skills through training;
  • Lower oil prices, in particular liquid petroleum gas (LPG), could open the door to advance clean cooking access; LPG services could also create jobs;
  • Maintaining focus on universal access to electricity and modern cooking is essential, especially in Africa; African governments and other partners should continue to work together to ensure progress toward SDG7;
  • Enhanced regional and international cooperation can play an important role in helping to build robust, affordable, sustainable and resilient energy systems across the continent.

The outcomes of this ministerial roundtable will be shared with key global decision-makers, governments, international financial institution, business leaders including for the IEA Clean Energy Transitions Summit, on 9 July 2020 and AUC-IEA Ministerial Forum in South Africa, in November 2020. The outcomes will also help guide and inform the IEA’s increasing efforts in Africa, including helping to inform key decision-makers from governments, companies, investors and organizations.

29 June 2020: Today the Global Warming Policy Foundation (GWPF) is launching its Energy Justice project, seeking to highlight how reliable energy access is central to the problems of people and businesses in the developing world, and showing how it must be central to any attempts to change things for the better.

Energy Justice is centred around a new website, that will highlight our research into some of these areas through reports and videos. To kick off the project, GWPF has designated this “Energy for Africa” week.

In all the discussions about the developing world, about its poverty and its stuttering progress towards a developed future, it is all too easy to forget the ordinary people and their suffering.

So the first paper commissioned as part of the project attempts to put a human face on the question of energy access. Entitled, Heart of Darkness: Why energy poverty is a security issue, this is a deeply personal view of the problems of energy access in Sub-Saharan Africa by journalist Geoff Hill.

From blanket hawkers on the street corners of Johannesburg, to a nyaradzo – a countryside funeral, Hill shows how lack of energy blights the hopes for Africa’s people, tempting the young away from the countryside, to emigrate, or sometimes even to take up lives of crime.

He also shows how new research into clean coal, often driven by Africans themselves, may offer a way out, while also highlighting Africans’ suspicions of the renewable energy “solutions” foisted on them by aid organisations and Western campaigners.

The project will continue with papers on the problems of South Africa’s energy utility Eskom, as well as a series of short videos, highlighting Africa’s energy poverty amidst  Western obstruction.

 

22 June 2020: Efficiency for Access Collaborates with Rural Senses and SVT Group to Develop an Impact Assessment Framework for High Performing Appliances.

Furthering its commitment to a responsible acceleration of clean energy access in off-grid communities, Efficiency for Access will partner with Rural Senses and SVT Group to develop an impact assessment framework for high performing appliances. The project, which is expected to last until August 2021, aims to standardise the way the impact of high performing appliances is planned, measured and reported.

Every year, tens of thousands of high performing appliances such as fans, TVs, fridges, and water pumps, are distributed across off-grid communities in developing countries. These appliances will significantly impact social, environmental and financial ecosystems. Interconnected factors in manufacturing, distribution and operation can dramatically affect the type and magnitude of these appliances' impact, whether positive or negative, on people and the planet.

The project will be led by Rural Senses, which specialises in data collection and AI-powered data analysis with the support of SVT Group, which develops globally accepted impact frameworks. Efficiency for Access will oversee the project and lead the process of creating consensus around the new framework.

The project will leverage existing evidence together with independent field research to map appliances’ impact in five areas: accessibility, durability and performance, economic, social and environmental. Impact indicators will be developed through modelling the ways in which different communities are impacted by appliances. The indicators will be used by distributors, manufacturers, project developers, donors and policy makers to enable evidence-driven decision-making throughout the supply chain.

In addition to the indicators that will be available for immediate use, the project will also investigate methods to improve data collection and analysis mechanisms. This will enable the use of indicators that the industry may be still unable to report on but are nevertheless important to capture holistic impact. "The framework will promote evidence-based policy and funding and, most importantly- it will allow to increase the benefits and mitigate the risks to local off-grid communities, as the sector grows" Says Dr. Stephanie Hirmer, Technical Director at Rural Senses.

The advanced impact modelling combined with simple indicators and improved data flows will result in an impact assessment framework which balances rigour and ease of use.

 

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About 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 Energy Saving Trust, which specialises in energy efficiency product verification, data and insight, advice and research.

About Rural Senses: Rural Senses is a social enterprise that originated from research conducted at the University of Cambridge, which provides data collection, AI-enhanced data analysis and research to maximise the impact of development interventions. Rural Senses uses ethical, unbiased and verifiable beneficiary data to measure needs and impact in humanitarian and development settings faster and at scale. The company was founded by Yau Ben-Or and Dr Stephanie Hirmer in 2018.

About SVT Group: SVT Group is an impact strategy and management firm founded in 2001 and based in Silicon Valley, U67S. SVT designs and implements systems to measure, manage and communicate social and ecological impact, reduce risk, and identify direct streams of previously hidden value for client organizations. Systems designed by SVT have assessed the social and environmental value of over $9Bn across a variety of asset categories for clients including Yo Yo Ma, Fair Trade USA, Beneficial State Bank, and CalPERS’ Environmental Investment Advisor. SVT is a “best for the world” certified B Corporation.

 

16 June 2020: The projects will be implemented in Mozambique, Kenya, Tanzania, Nigeria and Malawi, and are expected to benefit more than one million people. The overall amount to be invested through the A2E Fund stands at €500,000.

EDP will sponsor eight sustainable and renewable energy projects in five African countries through the A2E (Access to Energy) Fund. Totaling half a million euros, the financing aims to promote access to clean energy in particularly remote and underprivileged areas and to help tackle energy poverty in that region.

For this second edition of the fund, EDP has received 160 applications and selected eight proposals to be implemented in Mozambique, Kenya, Tanzania, Malawi and also Nigeria, which now joins the four countries covered last year. As in the previous edition, the A2E Fund invests in projects covering five priority areas - education, health, agriculture, companies, and local communities - and underscores evaluation criteria such as social impact, partnerships, sustainability, expansion potential, and financial viability.

Ranging from the installation of solar panels to the creation of innovative irrigation systems, all projects are based on sustainable rules and the goal of improving the lives of local communities - it is estimated that the sponsored initiatives will benefit - directly and indirectly - more than one million people in the five countries. With three projects, Kenya stands out in the list of selected organizations: KarGeno, Dadreg, and Centrum Narovinu. It is followed by Malawi, with two organizations: aQysta and Unicef. Mozambique is represented by VIDA, Nigeria by the Don Bosco Salesians, and Tanzania by the Aga Khan Foundation.

Aimed at both profit and nonprofit organizations, the A2E Fund follows up on the program launched in 2018, which in that first edition received as many as 108 applications from four countries and provided €450,000 for new projects in areas and populations in need. As in the first year, the fund continues to provide each selected project with financial support ranging from €25,000 to €100,000.

With this second edition of the A2E Fund, EDP strengthens its commitment to sustainability and to tackling poverty and electric exclusion, which still affect the lives of millions of people, especially in remote and underprivileged rural communities in developing countries. This financial support is part of a global strategy for Sub-Saharan Africa, which has led the company to invest in several projects in that region. Such is the case of the 2018 investment on Mozambique-based company SolarWorks!, a firm that creates decentralized solar energy solutions, and, more recently, of the bet on Rensource, a Nigerian startup that develops and manages solar energy systems.

What each of the 8 projects does:

  • KarGeno has submitted a sustainable irrigation project in Mabinju, Kenya. The project plans to install ten drip irrigation systems with a solar pump, thus supplying ten groups of farmers, and two water tanks for each group. The project will benefit 1/3 of the families with agricultural plots.
  • Also in Kenya, Dadreg has applied with a 15 kWp solar energy system for a community training center in Nairobi. This system will allow 980 young people from an underprivileged neighborhood to get professional training for paid jobs. It will also contribute to reducing energy costs by 70%.
  • Centrum Narovinu has submitted a project for a 20 kWp solar system that will supply the 'Island of Hope', a community center on Rusinga Island, Kenya. The institution, which welcomes orphans and vulnerable children, includes a kindergarten, a primary school, a secondary school, an orphanage, a medical clinic, and a computer lab.
  • UNICEF has applied with a project to install two 1.8 kWp solar energy systems for water pumping in two schools and neighboring communities in Malawi. The system will provide local communities with access to drinking water.
  • aQysta's 'Easi-Water, Easi-Pay' project plans to install 50 hydroelectric power pumps and 50 irrigation kits to support the work of 250 small farmers in three Malawian districts. Thanks to this system, local farmers will have access to irrigation during the dry season.
  • VIDA plans to install solar panels for a water pump irrigation system in Mozambique. The project also involves the lighting of a training center and a crafts workshop in Matatuine district, providing easier access to information on forestation processes, agroforestry systems, food security, and how to boost honey production.
  • The Aga Khan Foundation proposed the creation of the 'Mwanza Solar Switch', a 39.6 kWp solar system for the Aga Khan Hospital in Tanzania, and 26 solar water heating devices. The goal is to avoid the frequent power outages, cut on the electricity bill, and replace the diesel consumption of backup generators.
  • The Don Bosco Salesians Center in Nigeria plans to install a 10 kWp solar system to supply its Vocational and Professional Education Center. The project also includes the creation of a workshop to train electricians and experts on solar systems for electricity production.

You can learn more about the projects selected by the A2E Fund here.

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