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8 May 2020: Off-grid expert BOS AG supplies energy solutions for cooperative health care projects. Since 2014, Balance of Storage Systems AG, BOS for short, has developed solutions for energy storage and distribution. The growing company from Neu-Ulm is currently investing its expertise and capacities in a humanitarian initiative project. Given the global corona crisis, various companies with their respective areas of expertise have joined forces around the project initiators Solarkiosk GmbH and UNITAR to together contain the effects of Covid-19 in Africa. Multi-stage measures will be taken to address the lack of appropriate health care in regions of developing countries, in particular through the use of mobile solar clinics and laboratories. The solar, storage and power supply systems from BOS AG form a key element in the effective implementation of these planned measures.

The coronavirus is primarily a health threat, the consequences of which are indirectly reflected in many areas worldwide. The economic consequences for industrial nations are serious, the global financial system is likely to be irreversibly damaged, and politicians and society alike are at a loss. In developing countries, on the other hand, Covid-19 remains primarily a health threat, which could have far-reaching consequences due to the lack of sufficient health infrastructure. The outbreak of the coronavirus will also have a drastic effect on existing issues such as hunger and poverty in these regions. Statistics show that the number of Convid-19 cases in Africa is still relatively low, but the WHO experts can foresee a great danger that the continent could soon become the next epicentre. Rapid and effective action is therefore required to address these risks in developing countries quickly.

 

Valuable experience used effectively

Since 2014, BOS AG has been developing products and services in the off-grid area, i.e. for gridindependent energy supply. In addition to solutions for private use, the team has focused since their inception largely on humanitarian areas of off-grid power supply and has provided refugee tents, health stations, markets or villages in Africa and Asia with practical energy solutions. For years, BOS AG has maintained a partnership with Solarkiosk Solutions GmbH from Berlin, which in turn has launched a comprehensive project with the United Nations Institute for Training and Research (UNITAR) to develop a rapid response solution to combat the spread of Covid-19 in Africa. The core element of the planned measures will be laboratories and clinics in the form of fast deployable socalled E-HUBBs. The ambitious project to support rural health care, which can be implemented in the short term, combines the technical know-how and manpower of the initiators and partners: Solarkiosk will provide the mobile E-HUBBsand the corresponding equipment, UNITAR will prepare the staff for the deployment with training courses, and other cooperation partners such as Siemens Healthineers, Nexol and Solarworx will contribute medical equipment, solar technology and supply solutions. Already well progressed in the planning phase, it became clear that the experience and powerful developments from BOS AG are of fundamental importance for the successful implementation of the initiative.

Benjamin Seckinger, CEO of Balance of Storage Systems explains: "We are overwhelmed by the commitment of our partners from Solarkiosk and see great potential in the project. Since the foundation of BOS, we have been investing heavily in rural power supply and energy solutions for health care in developing countries. Given the Covid-19 pandemic, we can effectively bring this experience to bear and make the most of our developments".

 

Medical technology, air conditioning, light - day and night

The rapid response program against corona is designed in several stages and benefit from well organised and coordinated interaction between the parties involved. The concept is holistic and operates at different levels, from online learning systems for training and warning purposes, through to the flexible rapid response teams, to mobile laboratories and clinics. The focus lies in the modular and flexible laboratory and clinic equipment of Solarkiosk. All stations are powered and operated with Off-Grid solar systems. The energy generated by photovoltaics is stored by the advanced battery system of BOS AG and distributed to the facilities. Thanks to established lithium battery technology, round-the-clock energy supply for the essential medical equipment is extremely reliable. The laboratory containers are primarily available for corona tests and allow access to real-time data for propagation. The PV clinics are planned with 90 beds, of which 10 are for intensive care patients and 80 each for patients with moderate and mild symptoms. The energy storage capacity of the BOS lithium batteries will mainly be used for night-time operation, ensuring the function of medical equipment as well as air conditioning of the entire facilities or refrigeration of medication. The use of the special equipment, the on-site staff will receive expert training by UNITAR representatives. Both the laboratories and the clinical facilities were designed to be sustainable, so that they can continue to be useful in the long term, following the corona crisis, for example in the fight against Ebola and HIV.

 

The project before implementation

The schedule of the project has been completed, the BOS team and all partners are waiting for the appropriate start signals from the responsible organizations. Thomas Rieger, CEO of Solarkiosk Solutions GmbH, knows that there is a high demand for all scheduled products and services and will need to be managed accordingly "Since we designed and built our first solar-powered health centres in refugee camps, we have experienced how important a functioning health care system can be for those who are still dying of preventable diseases. We have seen how solar energy can be used to support the sustainable development goal number 3: - To ensure a healthy life for all people of all ages and to promote their well-being - with this technology and we are especially pleased that we can realize this project together with our long-standing partner, BOS AG. In addition to this challenge, in the current situation, one is confronted with difficult conditions of various kinds, such as logistical difficulties or an uncertain situation on site. Those responsible are prepared and devoted to the successful implementation of this project and reducing the Covid-19 threat to the most vulnerable people in the world.

 

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About BOS Balance of Storage Systems AG: BOS Balance of Storage Systems AG is a German high-tech company based in Neu-Ulm. The company was founded in July 2014 and has 20 employees. CEO and co-founder of the company is Benjamin Seckinger. BOS aims at becoming the leading company in decentralised energy supply with a focus on lithium - lead acid (Li-Pb) hybrid charging technology for solar systems that supports intelligent load management. Their key markets are located in rural and semi-urban areas in Africa, South East Asia and Latin America with insufficient access to modern energy services as well as market segments in industrialized countries that require decentralized power supply.

18 May 2020: A new report by Energy 4 Impact shows that, with the right encouragement, ordinary people are keen to invest in energy projects to help low- and middle-income countries meet SDG7 – universal energy access. Blended finance – a combination of donor funding and investment-based crowdfunding – is a valuable way to boost funding.

Since their launch in 2017, Energise Africa – an online impact investment platform that enables everyday people to invest in energy access businesses operating in sub-Saharan Africa – has raised over £14 million in debt to support energy access. Over 450,000 people now have access to clean energy as a result of financing raised on the platform.

Funding from UK aid, Virgin Unite and Good Energies Foundation helped to catalyse investment with £10.55 million of funding raised from the crowd and £3.5 million of funding coming in the form of donor match funding. Donor match funding can also act as first-loss capital, and as borrowers repay their loans the funding can be redeployed to catalyse investment in other energy access businesses.

In fact, thanks to this innovative form of funding, Energise Africa has raised more than double the target set at launch from 1,400 individual investors. The average investment was £1,100 per campaign and 9 out of 10 investors had invested in multiple campaigns.

More than one-third of investors on the platform are women, compared to one-fifth of investors on other platforms.

Energise Africa has also doubled their intended impact, with twice as many solar home systems deployed and  beneficiaries reached than targeted. Energise Africa has launched over 95 campaigns, resulting in over 90,000 solar home systems being installed.

The Energise Africa: Investment & Impact Report shares the impact of the platform on energy access and the findings during Energy 4 Impact’s analysis of all investment transactions on the platform over a 20-month period from 2017 to 2019.

The research shows that the introduction of match funding helped to boost investment and the launch of the first time investor guarantee (which guarantees up to £100 of an investors first investment) increased the number of new investors. So far, Energise Africa has catalysed more than three times the grant amount received in co-investment from the crowd.

 

Why is this investment so crucial?

There are still millions of people in sub-Saharan Africa who don’t have access to clean energy and use polluting and inefficient fuels, such as kerosene or paraffin, to light their homes.

Having access to reliable, clean energy requires an ecosystem in which energy access businesses can thrive. But for many energy access businesses, access to capital is the number one impediment to growth.

Thanks to the work of Energise Africa and other platforms, crowdfunding is now helping many of these enterprises to accelerate the distribution of clean   energy solutions to businesses and households in sub-Saharan Africa.

Take solar energy firm Simusolar, for instance. Simusolar sells and finances productive-use equipment, such as solar irrigation systems and fishing lights, to meet the needs of rural smallholder farming and fishing communities in Tanzania.

Founded in 2014 with funding by founders and friends, it later raised grant funding through DOEN Foundation to roll-out pay-as-you-go (PAYG) customer financing, but nevertheless faced the challenges of lack of early-stage working capital and accounts receivable financing, slowing the company’s growth.

Simusolar first used crowdfunding in 2017, securing $350,000 (£282,000) in debt through other peer-to-peer lending platforms.

Having built a track-record of sales growth and loan repayments – with sales of £250,000 in 2017 and £540,000 in 2018 –  the company was on course to obtain a larger lending facility through the Energise Africa crowdfunding platform in 2018. Simusolar borrowed £700,000 on the Energise Africa platform, through five bond issues to retail investors. The Energise Africa loans resulted in more than 7,000 fishing lights and 114 solar water units purchased by customers.

Energise Africa is now financing 11 borrowers active across 13 countries.

 

So what encourages people to invest in crowdfunding?

According to the report, people like the fact that the money invested is going to help environmental and social causes, while retaining a potential for income return. A real win-win for the investor.

The research shows that the promise of match funding led to an increase in investment, and that the first time investor guarantee also boosted investment, especially around the £100 level, the level of the guarantee.

In the four months after the launch of the first time investor guarantee in July 2019 there was a 65% increase in first-time investors compared to the four months before, with a huge 80% increase in investments of £100.

Campaigns with match funding and first-loss appear to increase both the amount raised and the number of investments per day, however it is still early days and only a handful of campaigns of this type were tested.

Tax incentives also make a difference. The UK has been a good example of the type of tax regime that encourages people to invest in crowdfunding schemes. The report shows the majority of investors (94%) are from the UK, and 41% of investments were made through the UK’s innovative finance tax efficient savings scheme (IF-ISA). 87% of investments are by people aged 45 years and older.

Energy 4 Impact’s Davinia Cogan, says:

"Match funding from donors such as UK aid has been an important factor in attracting investors. Not only are donors  catalysing investment in energy access companies today, as these funds are repaid by borrowers they can be used again and again to co-fund future campaigns by energy access businesses. This can be a highly efficient way to deploy philanthropic funding".

Energy 4 Impact is now looking at ways to further increase investment and investor involvement through additional techniques, and raising brand awareness through online campaigns.

"Energise Africa is an easily accessible online platform through which people can invest money, create impact and take practical action on climate change. It’s a win-win-win for the investor, the environment and people in sub-Saharan Africa who need greater access to affordable clean energy",

said Lisa Ashford, CEO Energise Africa Director.

18 May 2020: The ARE Awards 2020 pay tribute to the most effective initiative and/or project implemented across six categories, as a means to highlight the clean energy access results achieved by the most passionate and innovative actors in the sector, as well as to further increase their impact by sharing latest knowledge to new stakeholders. Universal, reliable, affordable, and sustainable energy access for all is essential to empower people worldwide to decide the course of their lives – be it through education, health and socio-economic development.

After careful analysis of the 77 applications received, the ARE Jury, formed by volunteering experts from AfDB, IRENA, GET.invest, REEEP, REN21, SACREEE SEforALL TAF, UNIDO UNIDO) and led by Claudio Pedretti (ARE President) as chair, is delighted to make the final results public to the world.

The ARE Awards 2020 Ceremony will take place at the 6th ARE Energy Access Investment Forum in Lusaka (Zambia). Originally planned for 18-19 March 2020, the event will now take place on 23-24 September 2020 in response to COVID-19.

 

Category 1. Multilateral / International Organisations

IDCOL - Solar Mini-Grid Projects (Bangladesh)

Bangladesh’s national strategy calls for universal access to electricity by 2021. In order to achieve this goal, IDCOL introduced their solar mini-grid initiative for the off-grid coastal islands and floodplain settlements which will not be serviced by the central grid for the next five to 10 years. Since 2016, IDCOL has overseen and financed the installation of 19 solar mini-grid projects, generating 4 MWp gridquality electricity to 16,000 people living in last-mile communities and allowing for a reduction of 1,250 tonnes of CO2/year. IDCOL plans to install 50 additional solar mini-grids by 2025.

 

Category 2: Public Bodies & Non-Profit Organisations

We Care Solar - Light Every Birth (Liberia, Uganda, Zimbabwe, Sierra Leone)

We Care Solar’s Light Every Birth initiative is ensuring that every health centre has access to clean energy for safe childbirth by making solar power simple and accessible to last-mile health centres. We Care Solar has already equipped more than 4,100 health centres with their Solar Suitcases, providing medical lighting and power for communication and medical devices, preventing 41,319 tonnes of CO2, aims to reach 8,300 health facilities in five countries in the next five years, serving 17 million mothers and newborns.

 

Category 3: Win-Win Partnerships

Mlinda - Rural Electrification Project (India)

Mlinda’s Rural Electrification Project (REP) involves installing solar energy based mini-grids in rural and tribal areas, ensuring sustainable rural socioeconomic development and livelihoods. Mini-grids can power productive loads which contribute to increased income, along with domestic loads. Productive uses of clean energy can also support the financial sustainability of the mini-grid business models as they enhance economic and social development impacts and lowers payment risks from customers. Mlinda has commissioned a total of 40 mini-grids, powering over 5,407 households and 1,090 productive loads.

 

Category 4: Best De-Risking & Finance Scheme

EDFI - EDFI ElectriFI (multiple countries)

The EU launched ElectriFI, the Electrification Financing Initiative, as an innovative financing tool to respond to the climate financing challenges by bridging the gaps in structuring and financing, stimulating the private sector and mobilising financiers. ElectriFI is an impact-investing facility with a mandate to invest in early stage, private companies and projects that increase/improve access to and supply of sustainable energy in developing countries. After four years of operation, ElectriFI manages EUR 220 million.

 

Category 5: Best Start-Up

ANKA Madagascar - Agribusiness Energy Nexus Business Model (Madagascar)

ANKA carries a business model that integrates PV powered mini-grid electrification with the development of commercial-scale agribusiness opportunities. AgriGrid is meant to span the enhancement of yields, creation of new food and agricultural products through value-addition, creation and facilitation of market linkages, and optimise PV mini-grids across Madagascar until 2022, empowering more than 220,000 people.

 

Category 6: Best Women Empowerment Initiative

EarthSpark International - Scaling Smart, Solar, Energy Access Microgrids (Haiti)

EarthSpark’s ecosystem has paved the way to the commercialisation of Haiti’s first privately owned, PV smart grid, avoiding around 13.9 tonnes of CO2/grid/year, displacing hazardous household air pollutants and improving access to education and other community services. The grid model involves women in infrastructure planning, employment and training, local SME support, domestic energy use, and community resource availability. EarthSpark has two live grids directly benefiting 3,000 people and plans to scale its micro-grid portfolio to 24 grids over the next four years.

Mr. Marcus Wiemann, Executive Director of Alliance for Rural Electrification: “We would like to thank all applicants, which have made this year’s ARE Awards a real competition amongst the most important players committed to making universal energy access a reality by 2030 for the remaining 840 energy deprived people, mostly living in rural communities. Once more, and in respect of the new-established categories covering Women Empowerment, De-Risking and Financing Schemes and Win-Win Partnerships, we have been really impressed by the passion expressed and quality of the applications received from all Awards participants from all around the world. We are hopeful that these awardwinning solutions will serve as solid best practice examples for new projects coming in the near future!”

 

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About Alliance for Rural Electrification (ARE): The Alliance for Rural Electrification (ARE) is an international business association representing the decentralised energy sector working towards the integration of renewables into rural electrification markets in developing and emerging countries. ARE enables improved energy access through business development support for more than 100 members along the whole value chain for off-grid technologies.

Welsh company Dulas’ pledge support during the COVID-19 crisis

Solar powered medical refrigerator supplier Dulas, based in Machynlleth, Wales, has pledged to do what it can to support global vaccination through the COVID-19 crisis.

The outbreak of Coronovirus has placed the greatest strain on healthcare systems in living memory, and the consequences go far beyond the spread of the virus itself. A devastating report by Gavi, The Vaccine Alliance, estimates that at least 13.5 million people in some of the poorest nations will miss their routine vaccinations due to programme delays and disruptions.

So far, 14 major vaccination campaigns against polio, measles, cholera, HPV, yellow fever and meningitis have been postponed, as have four national vaccine introductions. To address this severe setback, Gavi has released substantial and immediate resource  to ensure programme continuity.

The industry has pulled together to attempt to bridge the gap in vaccination coverage, and Dulas, one of the oldest businesses in the sector, has taken prompt action to safeguard production and service.

Dulas has its roots in ethical, humanitarian business and has deployed its innovative medical equipment to nearly every country in the developing world in a bid to save lives. Dulas’ solar power systems and vaccine refrigerators have supported recovery through many global disasters, including the 2011 Philippines typhoon and the devastating 2016 Ebola outbreak in Africa.

The company’s life-saving off-grid medical equipment is needed now more than ever, and despite the global backdrop, Dulas’ manufacturing plant in the UK is working hard to ensure that there is no slow-down in our order fulfilment.

There is currently no confirmed vaccination against COVID-19, but teams of scientists around the globe are working hard to develop a vaccine. When that breakthrough comes, if the resulting vaccine needs refrigeration, it is certain that Dulas’ equipment will play a key role in preventing the spread of the virus. The company has been a vital component and pioneer of the cold chain industry since 1982.

In addition to manufacturing and supplying vaccine and blood storage, there is also increased international demand for respiratory and general medical equipment. Dulas designs and supplies solar systems to provide uninterrupted power to health centres to enable the use of ventilators, oxygen concentrators and lights. The company’s refrigerators can also be supplied with ‘Solar Sockets’ that harvest excess energy from the refrigerator solar systems, diverting the power to other useful items, such as mobile phones, laptops or lamps, without affecting the performance of the refrigerator whatsoever.

Ruth Chapman, Dulas’ Managing Director, states that, “we’ve increased production in our manufacturing plant and worked with our suppliers to ensure we can meet demand. We have significant experience of working in countries with challenging conditions and getting cold chain equipment and power supplies to those who urgently need it. We are ready to do this and will work closely with charities and government organisations to mobilise immediate care.”

Gavi’s CEO Dr Seth Berkley, states that “the legacy of COVID-19 must not include the global resurgence of other killers like measles and polio”. The team at Dulas are doing their utmost to ensure that this worst-case scenario for global vaccination rates doesn’t happen.

The company will be liaising closely with UNICEF and Gavi and communicating with their partners across the globe to take their technology wherever it’s needed over the coming months.

Building Energy’s management, in partnership with Inspired Evolution’s Evolution II Fund, has successfully closed a buy-out of Building Energy’s Africa and Middle East business to launch the newly branded Red Rocket. The new joint venture will see the re-capitalisation and positioning of Red Rocket to become one of Africa’s leading emerging renewable energy independent power producers (IPPs). Evolution II holds a majority shareholding in the reconfigured IPP platform and is advised by Inspired Evolution, an Africa-focused investment advisory firm that specializes in clean energy infrastructure and resource efficiency investments.

The ground-breaking partnership brings together two seasoned professional teams with deep sector experience and proven renewable energy project development and auction conversion success to ramp up Red Rocket’s activities across Africa. The buy-out deal leverages the resources of multiple Development Finance Institutions (DFIs) and international investors together with local leading South African investment institutions active across Africa, secured via Inspired Evolution and Red Rocket’s existing relationships, to strengthen and forge stronger partnerships for its African expansion.

Red Rocket’s management skills set offers unique agility and differentiated bid strategies with best-in-class demonstrated renewable energy bid success and subsequent implementation of the projects. The team combines proven renewable energy technology selection with technical project development optimisation and innovation to offer full integration through its IPP platform solutions. The hands-on active value creation from Inspired Evolution complements Red Rocket’s capabilities to deliver on its African IPP expansion plans.

Red Rocket is an integrated renewable energy IPP that develops, designs, constructs, operates, and owns utility-scale grid-connected renewable energy projects (wind, solar, hydro and biomass) with operations in multiple countries across Africa. Founded in 2012 and headquartered in Cape Town, the company now known as Red Rocket was originally set up as the Africa and Middle East business unit of Building Energy’s global operations.

Its portfolio comprises 377 MW of projects in operation, under construction and awarded under public and private bids. The Group is also developing a portfolio in excess of 2 GW of additional best-in-class wind, solar, hydro and biomass projects to bid under future rounds of South Africa’s renewable energy independent power producer procurement programme (“REIPPPP”), and other procurement programmes across various African countries.

Matteo Brambilla, Chief Executive Officer of the Red Rocket Group, said: “We are pleased to be partnering with Inspired Evolution who bring sector expertise and proven project finance return performance to augment our efforts in building Red Rocket into one of Africa’s premier long-hold utility-scale IPP platforms offering least-cost clean and reliable energy to African customers. Our auction successes under the REIPPPP in South Africa and in select countries across Africa are testament to the innovation we continually apply to our renewable energy public and private bid strategies”.

Christopher Clarke, Managing Partner at Inspired Evolution, said: “Backing a commercially-astute professional team with demonstrated bid success to accelerate the deployment of utility-scale clean energy infrastructure in targeted countries across Africa, contributes to our mission. We share the vision with management for Red Rocket to continue to improve its competitiveness with agility and innovation to become a credible high-impact IPP platform of choice”.

 

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About Red Rocket Group: Red Rocket Group has been headquartered in Cape Town since 2012 and over the years the company has become one of the most innovative IPPs in Africa. Red Rocket’s growth strategy is based on pursuing a balanced portfolio of renewable assets both in terms of geography, market maturity as well as currency exposure (ZAR, USD, EUR). From a technology perspective, Red Rocket is and will remain active in wind, solar, hydro and biomass. Today the group has over 75 employees located in South Africa and Uganda.

About Inspired Evolution and Evolution II Fund: Inspired Evolution, investment advisor to Evolution I and Evolution II Funds, is a specialised clean energy infrastructure and resource efficiency investment advisory platform with offices in Cape Town, London, Nairobi, Abidjan and Mauritius. Inspired Evolution has been involved in financing the development and operations of more than 1.2 GW of renewable energy infrastructure generation projects across Sub-Saharan Africa. Evolution II Fund’s investors include the African Development Bank,  CDC Group, Cyane Holdings Ltd, European Investment Bank, the Dutch Development Bank FMO, the Finnish Fund for Industrial Cooperation, the European Initiative on Clean, Renewable Energy, Energy Efficiency and Climate Change related to Development SICAV, SIF – Compartment Global Renewable Energy and Energy Efficiency Fund, Swedfund International AG, KLP Norfund Investments AS, Morgan Stanley Alternative Investment Partners, Swiss Investment Fund for Emerging Markets managed by Obviam and a US healthcare system.

2 June 2020: Renewvia Energy Corporation, a global solardeveloper, and All On, a Nigerian off-grid impact investor, today announced apartnership to electrify rural communities unserved by conventional utilitiesin the Niger Delta region of Nigeria. The agreement includes a commitment of$1.2 million from All On to enable Renewvia to develop and operate solar minigridsto bring clean energy, and ultimately spur economic development in the region.

The first two minigrids have been commissioned and are operatingin the villages of Akipelai and Oloibiri, to support the surroundingcommunities. Renewvia’s minigrid in Oloibiri will power the new Oloibiri Healthfor Life Medical Center (H4LC) and Knowledge Management Institute, one of thehub health facilities funded by the Shell Petroleum Development Companyof Nigeria (SPDC) under the flagship Oloibiri Health Program. The program is a localgovernment-wide health system strengthening partnership with the Bayelsa Stategovernment. It will provide reliable, consistent power, at a reasonable cost,to enable frontline healthcare workers to provide affordable, accessible andquality assured health care to Ogbia communities.

“Renewvia Energy is thrilled to partner with All On to bringreliable, clean energy to communities who need it most,” said Trey Jarrard,CEO, Renewvia Energy Corporation. “We have connected hundreds of households in Akipelaiand Oloibiri to our minigrids, and we expect to see measurable economic benefitsfor these communities in the near future.”

The solar minigrids in Akipelai and Oloibiri utilize lithium ion battery storage toprovide reliable power throughout non daylight hours and are designed to scaleas individual and communal power demand increases, without any financial burdento the community. These minigrids will immediately help over 400 households andmultiple small- and medium-businesses scale activities and drivecommunity-level economic growth.

“We are happy to announce this partnership in line with ourmission to increase off grid energy access to unserved and underservedcommunities in Nigeria with a focus on the Niger Delta,” said All On CEO, WiebeBoer. “We are particularly pleased that one of the first minigrid projectsunder this partnership is supporting health care providers during this time ofcrisis.”

 

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About Renewvia Energy Corporation: RenewviaEnergy Corporation is a top 500 Global Solar Developer headquartered in theAtlanta, Ga. It designs, installs, owns and operates commercial and communitysolar power systems across three continents and provides a complete range ofsolar energy solutions including turnkey solar installation, integratedfinancing and solar consulting services.

About All On: All On, an independent impact investing company, was seeded withfunding from Shell, and works with partners to increase access to commercialenergy products and services for unserved and underserved off-grid energymarkets in Nigeria, with a special focus on the Niger Delta. All On invests inoff-grid energy solutions spanning solar, wind, hydro, biomass and gastechnologies deployed by both foreign and local access-to-energy companies thatcomplement available grid power across Nigeria and help bridge the significantenergy gap.

3 June 2020: The Covid-19 pandemic has hit renewable energy companies worldwide and its effects put at risk what the community has ardently worked for in the past years: affordable, reliable, sustainable and modern energy for all. While first repercussions are clear, future impacts and their temporal extent are yet unknown. To prepare and accompany project and business developers in these challenging times, GET.invest – supported by the European Union, Germany, Sweden, the Netherlands, and Austria – has launched several tools: a Covid-19 window for acute and finance-related business advisory, a business continuity checklist and scenario modelling tool for companies to adjust their planning, and a database listing business advisory and financial support available across the sector. As a European programme, the emphasis of all tools is on reducing the impact of the viability gap and supporting a “green recovery” of an even stronger decentral renewable energy sector.

Companies operating in the African and Caribbean region can now apply for the recently launched Covid-19 window within the GET.invest Finance Catalyst to receive business advisory for acute and critical finance-related problems. Dedicated advisors with extensive experience in renewable energy project, business development and finance provide advice on strategy including business continuity; business and financial structuring as well as financial modelling; access to finance support; and transaction advisory. For instance, advisory topics could include assistance with reviewing of business planning in light of a viability gap caused by Covid-19, understanding and where required re-negotiating existing financial obligations as well as introductions to available relief and emergency funds. A business continuity checklist and a scenario modelling tool developed by the advisors are freely available from the GET.invest website. To provide effective support, GET.invest coordinates closely with other partners, including the Covid-19 relief fund.

In collaboration with PFAN, GET.invest has created the Covid-19 Support Database which currently lists about 100 references of business advisory and financial support options offered by associations, impacts funds, international associations and programmes across the sector.

In parallel to its Covid-19 response, GET.invest continues its standard services of market information, a funding database, (virtual) business-to-business events, as well as regular, long-term support to bring clean energy business opportunities to fruition.

 

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About GET.invest: GET.invest is a European programme which supports investments in decentralised renewable energy. The programme targets private sector business and project developers, financiers and regulators to build sustainable energy markets in developing countries. Services include market information, a funding database, matchmaking events and access-to-finance advisory. The programme is supported by the European Union, Germany, Sweden, the Netherlands, and Austria, and works closely with initiatives and business associations in the energy sector. It is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). Find out more at www.get-invest.eu.

7 June 2020: MIGA, a member of the World Bank Group, has issued guarantees in support of the construction, ownership and operation of two solar photovoltaic power plants (Aggeneys and Konkoonsies II) in South Africa’s Northern Cape, and two wind power plants (Golden Valley and Excelsior) in the Eastern and Western Capes.

When operational later this year, the new plants will have a combined installed capacity of 288 MW, and the electricity will be sold to Eskom under 20-year PPAs signed in 2018.

MIGA’s guarantees are covering 90 percent of BioTherm’s equity investment for up to US$46.9 million in the photovoltaic solar plants and US$68.9 million in both wind production plants. The guarantees provide protection against the risks of Transfer and Inconvertibility, Expropriation, Breach of Contract, and War & Civil disturbance for up to 15 years.

BioTherm, the South African headquartered Independent Power Producer (IPP), which currently owns 394 MW of renewable projects in construction and operations in South Africa and Kenya, is wholly owned by global investor Actis. MIGA currently supports Actis on projects across multiple countries, providing about $900 million in guarantees. The guarantees in South Africa are part of Actis’ overall risk management strategy in the energy sector.

“We are pleased to continue working with seasoned investors and promote investments across Africa despite the strained global environment,” MIGA Executive Vice President Hiroshi Matano said. “Increasing renewable energy capacity to serve demand and diversifying South Africa’s energy mix this project also helps reducing GHG emissions.”

The two solar plants are expected to create up to 1,100 temporary jobs during construction, helping alleviate the Northern Cape’s unemployment rate of 28.9 percent. During operation, the project will create 160 jobs, 75 percent of which will be for local communities. The projects are compliant with Broad-Based Black Economic Empowerment (BBBEE) policies, and are 2.5 percent-owned by local community trusts.

The Excelsior wind plant will consist of 13 turbines, while Golden Valley will be made up of 48 turbines. Both wind plants will create 1,050 jobs during construction and 150 during operation.

“MIGA’s political risk insurance plays an important role in attracting institutional capital to renewable projects across our markets with high growth potential,” Actis Energy & Infrastructure Director Colin FitzRandolph explained. “Actis is pleased to build on our strong relationship with MIGA to deliver additional renewable power to the South African grid and to foster partnerships in the local communities surrounding the projects.”

Energy shortages are a major constraint to growth for South Africa, and by some estimates, load shedding in 2019 could have reduced economic growth by 1.1 percent of GDP and cut about 125,000 jobs. Supply constraints also affect neighboring countries that are interconnected through the Southern Africa Power Pool (SAPP), and represent 80 percent of the pool power demand and installed capacities.

These projects are part of the Round 4 bid window of South Africa’s Renewable Energy Independent Power Producer Program (REIPPP), which is delivering low-cost renewable energy to fuel South Africa’s development. To date, REIPPP has procured 6.4 GW of renewable energy and attracted more than US$13.5 billion (ZAR 200 billion) in investment into South Africa. By 2030, South Africa’s REIPPP is expected to secure up to 19 GW in renewable energy installed capacity for the people of South Africa.

Wind and solar power currently represent 8 percent of South Africa’s total installed capacity. 

 

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About MIGA: MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders.

Since its creation, MIGA has issued over $55 billion in guarantees across 114 developing countries.

10 June 2020: Three exciting days of live conference sessions, technical presentations, networking opportunities and an exclusive Utility CEO Forum will form part of the programme of the upcoming Virtual Future Energy East Africa from 1-3 September 2020.

Due to the COVID-19 pandemic, the organisers of this long running regional conference and exhibition have decided to cancel the live event that was scheduled to take place from 1-2 September in Nairobi. However, the event will proceed with a fully-fledged programme online. This will be the 22nd edition of Future Energy East Africa.

“While Africa is currently still dealing with a rising curve in Coronavirus infections,” says managing director David Ashdown, “it is now more important than ever for the utility and energy industry to gather and share information, best practice and, most critically, continue doing business. It is key to address the sector’s current COVID-19 challenges, but also to get ready for post-COVID realities. Just as technology has played an enormous role in keeping a lot of businesses going with lockdown restrictions, including the event sector, as well as in the fight against the pandemic, it will also play a crucial role in the post-pandemic era”.

Seamlessly running online event

“Last month, we organised a hugely successful Virtual African Utility Week and POWERGEN Africa after postponing the live event in Cape Town to November. We were the first in the sector to pull this off and the attendee numbers and level of engagement speak for themselves, 3,642 registrations and 7,015 matchmaking recommendations, showing clearly that that the industry is eager to engage, ask questions, find solutions and close deals.”

He adds: “our media division has been organising webinars for years and we were able to partner with them and seamlessly run the event online, managing to deliver a meaningful audience on a digital platform. As event organisers we have also heeded the attendees’ feedback and the upcoming Virtual Future Energy East Africa will be even more interactive and the content will be of interest to the sector’s full value chain, from utilities and regulators to project developers and technology and service providers.”

Virtual Future Energy East Africa will take place during the same week as the originally scheduled live event, but instead of two days, will run a three-day programme from 1-3 September.

Highlights of Virtual Future Energy East Africa will include:

  • Conference: 1-3 Sep 2020

           - Keynote

           - Country focus roundtables

  • Utility CEO Forum: 2-3 Sep 2020
  • Matchmaking: 1-3 Sep 2020

           - Throughout the three-day event programme

  • Training sessions: 1-3 Sep 2020

Value added exposure

“The Virtual Future Energy East Africa will provide a mix of free and premium sessions,” David Ashdown explains, “ensuring that all levels of attendee can get the most value from in-depth content. It is our way to offer both our long time partners and friends as well as new acquaintances the opportunity to stay connected. For those industry leaders who want to join us in a commercial capacity for extra exposure to this fast growing regional energy market, we also have some exciting opportunities available to add value to their participation.”   

Multi-award winning events

Future Energy East Africa is organised by Clarion Events Africa, a multi-award-winning Cape Town-based exhibition and conference producer across the continent in the infrastructure, energy and mining sectors. Other well-known events include African Utility Week and POWERGEN Africa, Future Energy Nigeria, Nigeria Mining Week, East & Central Africa Mining Forum and DRC Mining Week. Clarion Events Africa is part of the UK-based Clarion Events Group’s Clarion Energy Series, which runs over 40 events that cover the oil, gas, power and energy sectors, making it one of the group’s largest portfolios.     

 

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Future Energy East Africa dates and location:

Virtual conference and matchmaking: 1-3 September 2020

Venue: Online

16 June 2020: “Nuru is thrilled to be partnering with Gaia Impact Fund to bring millions of people renewable energy in the Democratic Republic of Congo”, says Jonathan Shaw, CEO of Nuru.

Nuru, which recently commissioned a 1.3MW minigrid in Goma, DRC, aims to provide electricity to 5 million people by 2024 through solar hybrid minigrids. DRC represents more than half of the population of Central Africa and has also one of the lowest electrification rates, at just 15%. While minigrids have an increasing role to play as the least-cost solution in the future electricity mix in countries such as DRC, they have been a largely underfunded segment of energy access markets. Against this backdrop, Gaia Impact Fund is happy to announce its first investment in the minigrid sector.

Hélène Demaegdt, President of Gaia Impact Fund, comments: “We are very proud to commit alongside Nuru, which has a first-to-market position in DRC and is in the process of deploying one the largest offgrid solar-based minigrid pipelines in Africa. All the connections created by Nuru’s projects are essential to address the needs of under-served urban areas and to displace diesel generation”.

By offering a stable and reliable electricity supply, at a cheaper price than existing (and non-renewable) sources of energy, Nuru aims to directly serve commercial and industrial off-takers as well as to sell power to households, SMEs and institutions.

“We are impressed by Nuru’s capable local team, successfully commissioning one of Africa’s largest minigrids in DRC’s complex and unstable environment”, says Guilhem Dupuy, Investment Director at Gaia Impact Fund. “We look forward to supporting Nuru to realize its scale up ambitions and to deliver on its mission in the country, alongside the impressive pool of investors and partners already committed around Nuru”.

Gaia’s investment comes along with Energy Access Ventures (EAV), a leading investor in smart infrastructure in Africa and an active shareholder in the company. Nuru is also supported by ElectriFI, a flexible financial facility funded by the European Union.

Jonathan Shaw adds: “Throughout the investment process, the team at Gaia Impact Fund demonstrated the agility, creativity, and commitment Nuru needs from its shareholders to navigate the unique challenges and opportunities that the DRC offers. We are excited to begin this journey with Gaia Impact Fund”. 

 

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About Nuru: Nuru (Swahili for “light”) is a mini-grid developer providing energy access through solar-hybrid systems in Democratic Republic of Congo (DRC). With the national electrification rate at just 15%, Nuru provides more affordable and reliable power for longer in the absence of the grid to Commercial & Industrial clients, Households, SMEs and Institutions that rely heavily on expensive diesel gensets for their power needs. The company was founded by Jonathan Shaw (CEO) who is backed by a local team with a deep understanding of the DRC business context, political landscape and regulatory environment.

About Gaia Impact Fund: Gaia Impact Fund is a French impact fund dedicated to energy access entrepreneurs. Gaia invests in startups and SMEs operating in Sub-Saharan Africa and South-East Asia, and active on various segments: solar kits, productive uses of electricity, minigrids, commercial & industrial solar installations, cleantech. Gaia Impact Fund was created by a team of entrepreneurs specialized in renewable energy and social impact investing. Since 2017, Gaia has supported 8 innovative companies in emerging countries and is actively pursuing its investment strategy with strong social and environmental impact.

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.

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.

 

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.

 

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.

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: 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.

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.

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

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.

STRATEGIC PARTNERS

Spintelligent
SAAEA
Pennwell
ALER

MEDIA PARTNERS

Renewables Now

EVENT PARTNERS

Africa Energy Forum
Future Energy East Africa
Future Energy Nigeria
Electricx
POWER-GEN Africa
Africa Energy Indaba 2020

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