The new Fund launched by the group will boost education, health and community projects in Kenya, Tanzania, Mozambique and Malawi, impacting the lives of 55,000 people.

EDP will support six sustainable and clean energy projects in East Africa through the A2E (Access to Energy) CSR Fund. In this first phase, 450 thousand euros will be applied to promote access to energy in remote rural areas without connection to the electricity grid, aiming to alleviate energy poverty in developing countries. These initiatives will impact 55 thousand people, of whom ten thousand will be impacted directly.

In total, 108 entities from around the world applied for the first edition of the Fund oriented for projects in Mozambique, Kenya, Tanzania and Malawi. The selected institutions, according to criteria such as social impact, partnerships, sustainability, potential for expansion and number of beneficiaries, work in the areas of education, health, water and agriculture, business and community, each one received financial support ranging from 25 thousand to 100 thousand euros and committing to implement their projects by the beginning of next year.

In Kenya, the Co-operative Bank Foundation and SAVIC Africa were selected. In Mozambique, support was given to UN-Habitat and Girl MOVE. In Malawi, the Energía Sin Fronteras Foundation was chosen and, in Tanzania, the Sustainable Investment and Development Initiative.

"This initiative reinforces once again EDP group's commitment to contributing to a more sustainable society, giving priority to the mitigation of electrical exclusion that still affects more than one billion people worldwide. Access to energy has the potential to play a revolutionary role in emerging countries, being an essential tool for a society to foster opportunities and equality", says António Mexia, president of EDP.

In addition to supporting social responsibility activities through this Fund, which has a global allocation of EUR 1 million and is expected to launch the second edition by the end of this year, EDP Group's A2E strategy also foresees the investment of EUR 12 million over the next three years in companies with sustainable solutions for universal access to energy. This bet was already materialized in 2018, with the first investment in the sector: the acquisition of a stake in SolarWorks!, a company with operations in Mozambique and that is dedicated to the commercialization of decentralized solar energy solutions.

Information on supported projects

The Co-operative Bank Foundation will install solar greenhouses with power of up to 100 kWp in irrigation systems in 12 schools in Kenya to ensure that there will be adequate supply of food throughout the year. In addition to access to energy for 6,000 people, the crops will be used to meet the nutritional needs of students, while the surplus will be sold in local markets enhancing agribusiness skills of students.

SAVIC Africa's OKAPI Green Energy project will build a 12 kWp photovoltaic mini-grid at Kakuma Refugee Camp in Kenya, with smart metering technology to provide electricity to 150 homes and 50 commercial clients, totaling 800 direct beneficiaries and 18,000 indirect ones. The goal is to improve access to health, education, income generation and entrepreneurship training.

The Girl MOVE Academy's "Energy for a Better Future" program will create a 30 kWp solar energy plant for ECOCampus and the institution's IT center in Mozambique, with the aim of increasing the number of training hours and contributing to the development of a new generation of female leaders.

UN-Habitat will build solar energy systems to supply 12 classrooms at two schools affected by natural disasters in Mozambique. In addition to promoting access to education for 1300 people, the initiative also covers the installation of emergency alert systems, internet access and charging stations, which could generate revenue for schools.

Energía Sin Fronteras Foundation will offer 25.9kWp photovoltaic panels to provide electricity for each of the five buildings at St. Mary's Rehabilitation Center in Malawi will be able to provide 24-hour medical care and clean water to 130 orphans with HIV as well as for outpatient and educational care for other children and for the elderly in the community. The project will impact a total of 2,800 people.

The Sustainable Investments and Development Initiatives (SIDI) will also allow 1500 fishermen and commercial and public facilities to access energy through a 10 kWp photovoltaic mini-network that will enable the generation, storage and distribution of power to a remote island in Tanzania, aiming to reduce poverty and to increase the annual income of this fishing community by 50%.

• The Government of Madagascar is aiming to double the country’s electricity production by the year 2030 and to increase the electrification rate from the current 15% to 50%. The additional power should come mainly from renewable energy sources.
• The RLSF will play a vital role by bringing the public and private sectors together to boost the success rate of more renewable energy projects in Madagascar
• The RLSF will not only protect Independent Power Producers (IPPs) in Madagascar against the risk of delayed payments by the public off-taker, the National Water and Electricity Company of Madagascar - JIRAMA, but will also increase the success rate of renewable energy projects as it will help reduce the cost of project financing.

ANTANARIVO, 15 April 2019 – At a signing ceremony held today, the Government of Madagascar and the African Trade Insurance Agency (ATI) signed an agreement that allows Independent Power Producers (IPPs) in the country to now access the Regional Liquidity Support Facility (RLSF). With the help of the Facility, the Government of Madagascar is hoping to develop its renewable energy sector.

RLSF is a joint initiative of ATI, and KfW with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ) with initial capacity of USD 63.2 million. Under the program, RLSF provides insurance protection to new small and mid-sized renewable energy projects (up to 50 MW and possibly 100 MW under exceptional circumstances) in Sub-Saharan Africa. RLSF focuses on small and mid-sized projects because they are widely seen as a more efficient way to rapidly increase energy access across Africa due to their ease of implementation and cost effectiveness.

RLSF will protect the IPPs in Madagascar against the risk of delayed payments by the public off-taker, the National Water and Electricity Company of Madagascar - JIRAMA. This type of guarantee is a common requirement from lenders that fund projects. Many renewable energy projects have failed to access funding and in turn reach financial close because this type of guarantee was not available. RLSF hopes to change this by providing the required guarantee in cooperation with the Letter of Credit issuing bank, ABSA Bank Ltd for an amount equivalent of 3 to 6 months’ worth of the IPP’s revenue generated from the power plant. This arrangement removes the financial burden from national utilities, such as JIRAMA, that are often asked to provide such liquidity protection.

Madagascar becomes the 6th country to sign onto RLSF joining Benin, Burundi, Malawi, Uganda and Zambia. RLSF was launched in 2017 as part of a global push, led by the UN’s Sustainable Energy for All initiative, to create viable green energy solutions in order to reduce harmful carbon emissions.

QUOTE from Hon. Vonjy Andriamanga, Minister of Water, Energy and Petroleum, Madagascar

“Specifically, the government plans to increase access rates and to fully exploit its renewable energy potential by targeting hydro, solar, wind and biomass resources. For instance, the northern and southern regions of the country have a potential renewable energy capacity of about 7,800 MW for electricity production of which only 2% of it is currently utilized. RLSF is an important tool in supporting the development of energy projects that will help the government achieve its strategic objectives in line with the Energy Performance Contract. Under this Contract, the government aims to increase the national electrification rate to 50% by 2030 largely thanks to renewable energy sources.”

QUOTE from His Excellency, Herald Gehrig, German Ambassador to Madagascar

“In line with the development cooperation program “Sustainable Power Supply”, GIZ and KfW are working together to reduce such challenges. The Technical Cooperation focuses on the improvement of framework conditions for investments in renewable energy so as to attract investors while the Financial Cooperation compliments the private sector capital with grant funding. This hedging of investment risks through RLSF, thanks to our partnership with ATI, offers a valuable solution for Malagasy IPPs. Further, through the PERER Project (Promotion of Rural Electrification through Renewable Energy), GIZ will support the Ministry of Finance with a financing contract of 3.9 million Euros to supplement the funds raised. This is an additional solution to help mitigate risks of renewable energy projects.”

QUOTE from Toavina Ramamonjiarisoa, Chief Financial Officer, ATI

“We are hopeful of opening up great opportunities for the private sector by offering such instruments to circumvent financing hurdles and thus mobilize capital in the renewable energy sector. This partnership with the Government of Madagascar through the RLSF perfectly illustrates our mandate – to help our member countries create an enabling environment for investors by supporting their strategic development objectives. In this specific case, these government objectives include among other things, the increase of the national electrification rate, the energy transition towards renewable energy sources and the strengthening of the public-private partnership. We also hope that this important step is only the beginning of cooperation between Madagascar and ATI that we wish to extend to other strategic sectors of the country.”

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Press Contact:

Ekira Nyaga

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Mob. +254 719 014 259

Press release 2019/15/04/Antanarivo

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Note to Editors:

About KfW

KfW is one of the world´s leading and most experienced promotional banks. Established in 1948 as a public law institution, KfW is 80 per cent owned by the Federal Republic of Germany and 20 per cent by the federal states (“Länder”).

KfW Development Bank is Germany’s leading development bank and an integral part of KfW. It carries out Germany´s Financial Cooperation (FC) with developing countries on behalf of the Federal Government. The 600 personnel at headquarters and 370 specialists in its 68 local offices cooperate with partners all over the world. Its goal is to combat poverty, secure the peace, protect the environment and the climate and make globalisation fair. KfW is a competent and strategic advisor on current development issues.

www.kfw-entwicklungsbank.de

About The African Trade Insurance Agency

ATI was founded in 2001 by African States to cover the trade and investment risks of companies doing business in Africa. ATI provides Political Risk, Surety Bonds, Credit Insurance and Political Violence and Terrorism & Sabotage cover. As of YE 2017, ATI has supported USD35 billion in trade and investments across Africa in sectors such as agribusiness, energy, exports, housing, infrastructure manufacturing, mining and telecommunications. Since 2008, ATI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s.

www.ati-aca.org 

5th April 2019: GridX Africa Development, in association with Solar Africa, has completed a state-of-the-art solar-battery system at Singita Faru Faru Lodge, in the western corridor of the Serengeti, Tanzania. The new energy system replaces existing diesel generation, with 90% of power to the lodge now sourced from renewables. The solar-battery project is the first of its kind in Tanzania and the first Tesla battery commissioned in Tanzania. 

Solar Africa provided upfront financing and the system is being managed by GridX Africa and Solar Africa as part of a holistic operations and maintenance program. The system is entirely off-grid and provides a reliable 24/7 power solution for Faru Faru’s operations. 

The installation comprises 189 kWp of ground-mounted solar PV integrated with 174 kW / 522 kWh Tesla PowerPack. Tesla’s battery system in this project is a prime example of how battery technology can be combined with renewable power generation to provide a long-term energy security solution at an economically viable cost. 

Chalker Kansteiner, founder of GridX Africa, said: “GridX Africa is very pleased to have led the development of the Faru Faru project - providing a positive outcome for our client, the environment, and the commercial and industrial power industry in the region.” 

Faru Faru’s solar-battery system displaces over 100,000 litres of diesel each year, reducing annual diesel power generation costs through decreased fuel consumption, logistics, and generator maintenance cost savings. The completion of this system highlights the complete alignment between conservation, tourism, and renewable energy, based on all parties’ shared vision for sustainable outcomes. 

The solution provided by GridX Africa supports Singita’s commitment to sustainability and reinforces its position as a leading conservation brand.  Singita’s single-minded 100-year purpose is to protect and preserve large areas of African wilderness for future generations. 

Luke Bailes, CEO and Founder of Singita, said: “Sustainability – operating in an environmentally conscious way at every level of the business – is a key component of conservation success, alongside maintaining the integrity of our reserves and their ecosystems, and working with local communities. The health and survival of each of these is crucial to the survival of the whole.” 

GridX Africa develops, finances and operates solar projects throughout sub-Saharan Africa, with more than five additional projects expected to be completed during 2019 for clients in a range of sectors. .

ABOUT GRIDX AFRICA:

GridX Africa’s mission is to implement sustainable power systems that address Africa’s unmet energy demands, helping to unlock the continent’s potential by providing African companies with reliable and economically efficient power alternatives. Utilising new approaches to power supply issues and marrying development, conservation and business are key to the work of GridX, contributing to solving energy and environmental issues not only in Africa, but across the world.

GridX Africa also aims to have a positive impact on local communities and the environment, for example through skill transfer programs, catalysing investment and job creation.

www.GridXAfrica.com

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