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EXTERNAL

 

 

 

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.

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.

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.

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.

4 May 2020: The World Bank Group and the Cambridge Centre for Alternative Finance (CCAF), based at the University of Cambridge Judge Business School, have published a joint report that examines a wide range of financing solutions for delivering Off Grid Solar (OGS) electricity to more than 840 million people still living without access to reliable power.

The report, Funding the Sun – New Paradigms for Financing Off-Grid Solar Companies, explores an array of innovative as well as traditional financing solutions for providing electricity access to hundreds of millions of people, predominantly in sub-Saharan Africa. It also offers guidance for companies seeking to deploy their OGS solutions by outlining which financing option best suits their specific approach, the preconditions for each financing option, and the associated opportunities and challenges.

The recent Off-Grid Solar Market Trends Report 2020 by the World Bank Group and GOGLA (the OGS industry association) highlighted that, in order to achieve universal access to electricity by 2030, the OGS sector would need between $6.6 billion and $11 billion in additional funding.

“In the midst of challenging times, traditional financing channels can no longer suffice for covering the needs of the OGS market. This report presents a wide range of alternative technology-enabled funding options that can help companies not only survive in this new reality, but also thrive and catalyze universal access to electricity,” says Rohit Khanna, Manager of the Energy Sector Management Assistance Program (ESMAP) at the World Bank.

The report takes a holistic view of the suite of 17 financing instruments that could be applied to the OGS sector across four core areas: benefits, challenges, necessary market conditions, and policy/regulatory considerations. It provides a comprehensive review of established financing instruments such as grants, venture debt, securitization, convertible notes, mezzanine debt, and development impact bonds, as well as more innovative ways of raising finance such as reward- and equity-based crowdfunding, peer-to-peer lending, online debt-based securities, and government-issued mobile bond.

The study then considers how an array of ‘catalytic tools’ such as match funding, first-loss guarantee, tax incentives, and collateral buy-back facilities can further catalyze funding for the OGS sector. Finally, the report explores how blockchain technology and tokenization might contribute to the emergence of distributed ledger technology based OGS financing ecosystems.

“This report elucidates the potential role of financial innovation in widening energy access and achieving sustainability,” says Bryan Zhang, Executive Director, CCAF. “It also provides a practical roadmap and an array of options for entrepreneurs, firms and financiers navigating capital raises for off-grid solar in a testing and increasingly complex environment.”

 

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About the CCAF: The Cambridge Centre for Alternative Finance (CCAF) is an international interdisciplinary academic research institute dedicated to the study of alternative finance, which includes financial channels and instruments that emerge outside of the traditional financial system (i.e. regulated banks and capital markets). Examples of alternative channels are online 'marketplaces'​ such as equity- and reward-based crowdfunding, peer-to-peer consumer/business lending, and third-party payment platforms. Alternative instruments include SME mini-bonds, private placements and other 'shadow banking'​ mechanisms, social impact bonds and community shares used by non-profit enterprises, and alternative currencies such as Bitcoin.

 

1 May 2020: The government of Zambia has plans for an energy surplus over the next two years. To meet this goal, it is exploring renewable energy, such as solar power.

Zambia’s constant power cuts are now a thing of the past. Thanks to a robust hydraulic and solar power generation industry in recent years, the country is now self-sufficient in energy.  And, there is even better news for citizens of the South African nation- electricity production could soon be in surplus.

Zambia generates practically all its energy production from its own primary resources: biomass, coal and hydroelectricity, with flagship plants such as the power station near the Itezhi-Tezhi Dam, in the south-east of the country, taking center stage.

The $375 million Itezhi-Tezhi hydroelectric generating station became operational in 2016. The plant has a 120MW capacity and is the fruit of the first public-private partnership project in the Zambian energy sector. Its primary objective has been to produce enough power to end the crippling daily blackouts and meet consumer needs of the country’s 17 million inhabitants.

 

Zambia stopped electricity imports in early 2018

Itezhi-Tezhi power plant has already increased the country’s power generation capacity by 7.5% and supplied an extra 50,000 people with electricity. In the first quarter of 2018, and for the first time in its history, Zambia stopped importing electricity from neighboring countries such as Mozambique.

As far back as September 2017, national operator ZESCO’s head of power transmission, Webster Musonda, told Ecofin agency: “Zambia’s power generation capacity has improved and will now be able to largely meet its energy needs.” “Overall, we will be able to meet demand and routine energy imports will cease […] but we will continue to import energy to meet occasional peaks in demand.”

The country’s new hydropower stations at the Musonda, Lusawaki and Kafue Gorge dams are important developments and in September 2018 the government inaugurated a 50 MW power plant at a cost of $60 million. An even more ambitious programme is underway, involving the construction of mini solar plants with an eventual overall capacity of 600MW at an estimated cost of $1.2 billion.

The African Development Bank which is championing its High 5 development priorities, such as the “Light up and power Africa, initiative under which this project falls, contributed $55 million to the Itezhi-Tezhi plant.  Additional funding has been provided by international donors including the Netherlands Development Finance Company, the Development Bank of South Africa and Proparco France.

The Bank’s portfolio in Zambia currently includes 23 ongoing projects, amounting to an investment of one billion dollars, in three main sectors: transport, water and sanitation and agriculture.

 

Cross-border collaboration

A strong partnership with Zimbabwe has been the key to Zambia’s success. The two southern African neighbors are working on a major energy project on the Zambezi River, which marks their common border. The 2750 km long river is the fourth-largest on the continent.

The project, which has a projected output of at least 2400 MW, is to be built upstream of the Kariba dam, close to the famous Victoria Falls, at a cost of $3 billion.

Electricity output will be shared equally between Zambia and Zimbabwe, with excess production sold on to other member countries of the Southern African Development Community (SACD), according to the project’s initiators.

28 April 2020: RMI’s latest report highlights the importance of rural electrification as Ethiopia experiences threats to its economy and food security from locust infestations and cases of COVID-19.

Rocky Mountain Institute (RMI) today (28 April 2020) launched a new report that shows how electricity can unlock billions of dollars in new value across six agricultural processing or small business opportunities in some of Ethiopia’s most important crops, while saving money for farmers who switch to electricity from expensive alternatives such as diesel.

In collaboration with the International Food Policy Research Institute (IFPRI); the Ethiopian Ministry of Water, Irrigation and Energy (MoWIE); and Agricultural Transformation Agency (ATA), RMI’s Capturing the Productive Use Dividend: Valuing the Synergies between Rural Electrification and Smallholder Agriculture in Ethiopia report outlines the synergies between rural electrification and agricultural productivity, processing and businesses, and the value that can flow from closely linking the two. By mapping key value chains and opportunities, this report demonstrates the economic case for a national program to promote the productive uses of electricity.

“There is a huge opportunity for Ethiopia to capture an economic dividend and accelerate progress toward national development goals, capturing the benefits of electrification for rural smallholders,” said Francis Elisha, principal at Rocky Mountain Institute.

In the midst of current widespread global economic disruptions caused by COVID-19, compounded by the mounting threat of desert locust infestations, Ethiopia faces numerous threats to national food security including disrupted trade and import channels, food price spikes, water supply risks, and delayed or compromised harvest yields. Ongoing efforts to transform the agriculture sector in Ethiopia therefore continue to be critical.

RMI’s research explores the opportunity for mutually assured success among agricultural transformation and rural electrification efforts. These solutions can be deployed in rural areas on and off grid, thereby creating millions of dollars in new revenue for the utility, helping defray the costs of rural electrification and reducing the subsidy needs for minigrids.

The report outlines value streams for different actors in the productive use space:

  • Rural smallholders can use electricity to unlock or accelerate revenue streams from agricultural productivity and processing worth $4 billion by 2025.
  • Making the switch to electricity saves communities another $120 million in fuel costs, while unlocking an annual revenue stream of $22 million for the utility.
  • Providing the appliances for this market is a $380 million business opportunity for local manufacturers, importers and distributors.

“In agriculture, electricity can unleash higher farm income and productivity by enabling irrigation, cold storage and post-harvest processing and handling. Thus, it is time for Ethiopia to invest in electrifying farms, in addition to lighting residences, through electric motor pumps and storage facilities with innovative financing mechanisms such as pay-as-you-use and pay-as-you-store options,” said Dawit Mekonnen, research fellow at the International Food Policy Research Institute (IFPRI).

Working alongside electrification efforts, a national productive use program could offer huge benefits and position Ethiopia as a leader in the sector, setting a model that other countries will no doubt follow.

To download the report, visit http://rmi.org/insight/ethiopia-productive-use

 

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About Rocky Mountain Institute: Rocky Mountain Institute (RMI)—an independent nonprofit founded in 1982—transforms global energy use to create a clean, prosperous, and secure low-carbon future. It engages businesses, communities, institutions, and entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift from fossil fuels to efficiency and renewables. RMI has offices in Basalt and Boulder, Colorado; New York City; the San Francisco Bay Area; Washington, D.C.; and Beijing.

About The International Food Policy Research Institute: The International Food Policy Research Institute (IFPRI) seeks sustainable solutions for ending hunger and poverty. IFPRI was established in 1975 to identify and analyze alternative national and international strategies and policies for meeting the food needs of the developing world, with particular emphasis on low-income countries and on the poorer groups in those countries.

24 April 2020: Blockpass has formed an alliance with Liquidstar, “the Uber for Electricity”, to provide digital identity solutions for off-grid energy provision in developing countries, with initial focus on COVID-19 relief in Nigeria and other pilots in Africa.

Liquidstar has developed a Decentralized Autonomous Utility (DAU) management system utilizing Waypoints, container-housed charging stations, that deploy smart batteries for off-grid electricity provision. From the source-agnostic Waypoints, service providers branded as ‘Power Rangers’ manage the rental and deployment of blockchain-enabled batteries to shared mobility and delivery services, homes and offices. Power Rangers are local businesses or entrepreneurs who recharge, deliver and pick up batteries, as well as handle payment administration.

Blockpass’ digital identity SaaS, KYC ConnectTM, is a core element of Liquidstar’s DAU management stack, providing digital identity profiles for members of the DAU ecosystem. The partnership in the energy sector is a testament to Blockpass’ ability to provide KYC, AML and digital identity solutions to a range of businesses and organizations that need digital verification of trust in an increasingly remote world of COVID-19. Through the Blockpass identity app, end-users have control of their identity, easily create a verified portable identity and reuse it to onboard with any service instantly.

“Blockpass plays a critical role in Liquidstar, enabling the first physical world implementation of end to end Human+Company+Device identity to power Liquidstar’s Decentralized Autonomous Utility platform, ” noted Conor Colwell, Co-Founder of Liquidstar.

Blockpass CEO and Co-Founder Adam Vaziri added, “We are excited about being involved in enabling Liquidstar’s decentralized utility management platform to verify the identities of off-grid ecosystem participants. In an increasingly remote world, there is a strong need to establish trust via reusable and verifiable digital identity.’

In response to the COVID-19 pandemic, Blockpass and Liquidstar are working with Vista Advisory Partners, Feed the Streets Lagos, Afara Group, Ample and GCIF to provide masks, food, water, and sustainably generated power to those who need it the most. Funds, which can be donated via a project GoFundMe page, will also go towards inventory management, transportation of those goods, proper protection for those delivering the goods, and platform costs.

Liquidstar also starts a funding round April 25th through equity crowdfunding platform Birchal, and is accepting expressions of interests on its fundraising page.

 

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About Liquidstar: Liquidstar offers a new category of energy distribution, utilizing Waypoint charge stations to deploy smart batteries for beyond-the-grid electrical power distribution. Liquidstar’s vision is to leapfrog off-grid markets to the ‘wireless’ battery powered sustainable ecosystems of the future – solving energy access challenges for the powerless 1.1 billion and providing electricity for essential services during grid destroying disasters. The core Liquidstar software platform strings together various innovation layers provided by expert partners to manage the delivery of source-agnostic electricity through Power Ranger operators. Liquidstar has active pilots in Nigeria and Benin, with Indonesia, Australia, Lebanon, and others in development.

About Blockpass: Blockpass is a unique, reusable digital identity (DID) solution for any organizations that participate in regulated industries and in the increasingly remote business environment where trust needs to be verified digitally. Blockpass offers an alternative process to cumbersome, repetitive and expensive Know Your Customer (KYC) and Anti-Money Laundering (AML) checks through a seamless merchant dashboard that is setup immediately with pay-as-you-go and no initial fee. Blockpass’ KYC ConnectTM platform enables businesses to select requirements for customer onboarding that can include ID authentication, face-matching, address checking, AML ongoing monitoring and/or screening of sanctions lists, politically exposed persons (PEP), and adverse media. Through Blockpass, end-users easily create a verified portable identity that they can control and re-use to onboard with any service instantly.

21 April 2020: Leading off-grid utilities provider, Winch Energy, has unveiled the Winch Clinic, a mobile health facility fully powered by renewable energy. The new clinic has been designed to overcome the barriers of time, affordability and reliability, which can prevent vulnerable populations across the developing world from accessing healthcare.

Quick to install in a matter of weeks, the modular building provides healthcare to urban, rural and remote communities. The 20-40 foot containers can be configured to include four or eight full-service rooms and easily expanded as demand increases. Depending on requirements, the rooms can be arranged to serve as a dispensary, consulting room, surgery room, Intensive Care Unit (ICU), examination room or an office for doctors and other healthcare professionals. 

Unreliable electricity access leads to the spoiling of medicine and vaccines as well as the inability to use equipment and interruptions to medical procedures. The Winch Clinic uses, as its base, the Winch Remote Power Unit (“RPU”), which have been successfully deployed in five African countries and operating for over four years. The units have an average design life of 35 years and are successfully and reliably operating in the most remote and harsh environments in Africa.  

Equipped with photovoltaic (PV) solar panels and an integrated battery generator, the Winch Clinic is able to run 24/7, supporting air conditioning, ventilation and air filtering, lighting, and water pumping and purification facilities, which are essential for hygiene, as well as ventilators and other specialist devices. A number of power supply options are available, ensuring the Clinic can also power medical equipment and other appliances, VSAT Internet connections, a drone charging platform for the delivery of supplies, and, if necessary, lodgings for medical and administrative staff required to provide care to patients.

The Winch Clinic can be a permanent fixture but also serve temporary communities or support existing healthcare facilities in times of increased demand as it can swiftly be deployed and redeployed as needed. 

For Government Buyers, long term and affordable export credit facilities are available for all Winch Energy products. Long term financing with repayment periods of up to 18 years are achievable, with fixed rate funding that is lower than can be obtained from the commercial bank market.  

Nicholas Wrigley, CEO of Winch Energy Limited, commented: “Healthcare is fundamental for the communities to develop and thrive, yet too often people are unable to access the services they need due to lack of infrastructure. We have designed the Winch Clinic to be self-contained, cost-effective and powered by clean, renewable energy so it can be swiftly installed exactly where people have the greatest need – particularly important for developing communities in Africa, Asia, Latin and South America.

“The recent COVID-19 pandemic has only further highlighted the importance of providing healthcare facilities that can reliably run day and night to treat patients and prevent the spread of disease. We are pleased that we have been able to bring forward the launch of the Winch Clinic and introduce it at a time when governments and health organisations are calling for clinics that can quickly be deployed and adapted for testing and treatment in response to the virus.”

8 April 2020: REDAVIA, a global market leader of cost-effective, reliable, and clean solar power for businesses, has created a new concessionary solar power program, the COVID-19 Resilience Lease, in order to stand by Ghanaian and Kenyan businesses in this difficult time of economic uncertainty. 

COVID-19 has disrupted African businesses significantly. In this challenging time, REDAVIA enables sound businesses to reduce their operating costs with a free solar plant leasing service. REDAVIA has introduced the COVID-19 Resilience Lease, which provides solar power plants to business customers for six months, completely for free.

After these six months, customers can choose to roll-over this Lease into a regular REDAVIA solar plant lease or request REDAVIA to re-deploy the plant. This offer is available to selected long-term sustainable Ghanaian and Kenyan companies on a first-come, first-served basis, while supplies last.

Mankoadze Fisheries Limited in Tema, Ghana, was first to sign on to the REDAVIA COVID-19 Resilience Lease. Godfried Kwame Anafi, Director of Mankoadze Fisheries Limited (MFL), is eager to see the restart of his company’s cold store and resumption of service to the corporate and independent fishing customers as soon as possible. REDAVIA will lease MFL the solar plant six months for free, so MFL’s system-critical business gets through the crisis successfully.

The Royal Senchi Hotel & Resort has also joined this unique REDAVIA program. The hotel has been especially hard hit by the pandemic and saw its occupancy rates drop precipitously. Big losses in revenue made lowering utility costs a top priority for hotel management. Gerard Schraven, General Manager, said, “REDAVIA’s solar plant will enable us to keep our energy cost as low as possible when the hotel re-opens after this global health crisis.”

Erwin Spolders, CEO & founder of REDAVIA, confirmed, “REDAVIA understands the economic implications of this pandemic, and we pledge to be a true friend to our business partners in this time of need.”

 

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About The Royal Senchi Hotel and Resort: The Royal Senchi Hotel and Resort is the first 4-star luxury resort in Ghana. It stands on 35 acres of lush greenery with a magnificent view of the Volta River. It offers a unique blend of fauna, flora, traditional architecture, and modernity of the highest standards.

About Mankoadze Fisheries Limited: Mankoadze Fisheries Ltd. is a Ghanaian-owned business. The company owns and operates, among others, a 3000 tonne cold storage facility off Harbor Road in Tema. It provides cold-storage services to the Tema-based fishing fleet and to corporate fish importers and canneries. As such, Mankoadze is a system-critical link in the fish cold-chain to Ghanaian and West-African consumers.

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

 

6 April 2020: Swiss impact asset manager responsAbility Investments and EDFI ElectriFI today announced their cooperation in the field of climate finance in emerging economies. Under the agreement, EDFI ElectriFI is providing additional first-loss capital for a responsAbility-managed energy debt fund targeting universal access to clean power. By further strengthening the Fund’s capital structure, responsAbility aims to mobilize additional private capital in line with SDG7.

The recently launched USD 200 m private debt fund addresses the lack of access to clean power globally with a strong focus on Sub-Saharan Africa and South and Southeast Asia. Incorporated in Luxembourg as a 10-year closed-ended structure, the blended finance vehicle targets companies that provide solutions to households without access to electricity and to businesses looking for cleaner, cheaper and more-reliable energy. Over the lifetime of the Fund, portfolio companies are expected to provide clean power to more than 150 m people, add 2,000 MW of clean energy generation capacity and reduce CO2 emissions by 6 m tonnes.

EDFI ElectriFI joins reputable public and private investors who have helped launch the Fund. By strengthening the first-loss tranche of the blended finance structure, it aims to leverage public funding to attract additional private sector capital for this important investment theme which supports the Sustainable Development Goal 7: ensure access to affordable, reliable, sustainable and modern energy for all.

Antoine Prédour, Head of responsAbility’s Climate Finance Initiatives, explained: “With the current pandemia threatening capital flows into emerging markets, it is more important than ever to raise capital and bridge the financing gap towards universal access to clean energy. Having launched the first investment fund of this scope to address both the home solar and the commercial and industrial (C&I) solar sectors, we are excited to receive the support from EDFI ElectriFI which will help us to further develop this high-impact investment universe.”

Speaking on behalf of EDFI ElectriFI, Senior Investment Officer Lionel Dieu said: “With a previous private debt fund targeting access to clean power at the origin of this new Fund, responsAbility has clearly established itself as a leading private investor in the field of energy access. The ElectriFI junior instrument unlocks more DFI funding in more senior tranches and de-risks other investors’ financing, allowing the company to extend financing to the Commercial & Industrial (C&I) and Solar Homes Systems’ sector.” Jean-Denis Collin, Regional Manager, EDFI ElectriFI, added: “With this concrete commitment, ElectriFI is strengthening the partnership with responsAbility and looks forward to exploring co-investment opportunities in the future.”

 

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About responsAbility Investments: A leading impact asset manager with a 17-year track record, responsAbility manages USD 3.5 bn of assets invested in 450 fully ESG-managed high-impact companies across 90 emerging economies. Since the company's inception in 2003, responsAbility-managed funds have disbursed USD 10 bn in private debt and private equity to companies in the sectors of climate finance, sustainable food and financial inclusion whose business models directly support the United Nation's Sustainable Development Goals (SDGs).

About EDFI ElectriFI: EDFI ElectriFI is an impact-first investment facility, investing in early stage private companies and projects that increase or improve access to and supply of sustainable energy in developing countries. ElectriFI is funded by the EU, Power Africa, and Sweden and combines a global facility as well as five Country Windows established in closed collaboration with EU delegations and with the support of national governments.

 

6 April 2020: Aksa Energy, a Turkey-based Independent Power Producer (IPP) operating in 5 countries across 2 continents, has donated 2.5 million Ghanian Cedis to the COVID-19 National Trust Fund created by the Office of the Presidency of Ghana to fight against COVID-19. The Company has been producing electricity for Ghana since 2017.

A special ceremony was held on April 6 at the Office of Presidency (Jubilee House) for the donation. Aksa Energy West Africa Coordination Director Murat Captug and the Turkish Ambassador to Ghana Ozlem Gulsun Ergun Ulueren were hosted by Akosua Frema Osei-Opare, Chief of Staff of Ghana. At the ceremony, Murat Captug presented Akosua Frema Osei-Opare a donation cheque of GHS 2.5 million on behalf of Aksa Energy.

Speaking of the donation Murat Captug, West Africa Coordination Director of Aksa Energy said: "As a global company operating in 5 countries across 2 countries, we are committed to increasing the welfare and life quality of local communities in the regions where we operate, both by meeting their urgent demand for electricity and through social support programmes. Today the whole world is struggling with COVID-19. As Aksa Energy Ghana, we are aware of our responsibilities to Ghana, and therefore we are very pleased to make a donation to the fund to support the Ghanaian government in its fight against COVID-19. We hope life returns to normal for the whole world soon. Aksa Energy will continue to work, produce and build a better future together with Ghanaians."

 

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About Aksa Energy: Established in 1997, Aksa Energy is a subsidiary of Kazanci Holding A.S., a conglomerate with interests in electricity generation, gen-set production, electricity distribution, natural gas distribution, agriculture, and tourism.

Headquartered in Istanbul, Turkey; Aksa Energy is a publicly-listed Independent Power Producer (IPP) operating across 5 countries on 2 continents. To date, the Company has built and operated more than 30 power plants using various energy sources such as coal, fuel oil, natural gas, biogas, wind and hydroelectricity.

Aksa Energy carries out project development, design, procurement, engineering, logistics, installation, commissioning, maintenance and operation activities of all its power plants with its in-house teams.

Aksa Energy builds and operates power plants in energy-strapped territories in order to meet the urgent demand for electricity. In addition to its power plants in Turkey and Turkish Republic of Northern Cyprus; Aksa Energy boasts nearly 500 MW of installed capacity in Africa with a 370-MW power plant in Ghana, 40 MW in Mali and 66 MW in Madagascar. Aksa Energy has also rehabilitated a 24-MW power plant in Madagascar and operates it under an Operation & Maintenance contract for the country.

Aksa Energy commissioned its power plant in Ghana in March 2017 after a speedy construction phase of only 9 months, and engine conversion to dual fuel (HFO/natural gas) at the Plant is underway.

3 April 2020: Azuri Technologies is helping to off-grid children across Kenya to continue education while schools remain closed.

Kenyan schools have been shut down as a measure to contain spread of the Coronavirus. With more than 15 million primary and secondary students at home, the Ministry of Education announced it would broadcast lessons up to eight hours daily through dedicated radio and television channels.

Azuri solar-powered satellite TV is helping rural children across the country to access the new education channels and ensures they are equally benefiting from the national initiative as fellow students in urban areas, connected by the grid.

Thanks to off-grid systems like AzuriTV, rural households can access Edu TV Channel 029 featuring daily lessons including English, Kiswahili, Maths and Science, along with hygiene and nutrition lessons being broadcast to help inform students and families on best practice to help defeat the spread of Coronavirus.

“Azuri is committed to supporting off-grid households through this challenging time and we want to do all we can to ensure that children in rural Kenya are not left behind in terms of learning progress due to the crisis facing the nation and the world,” said Azuri CEO Simon Bransfield-Garth.

Azuri-powered off-grid households can also access learning via Radio Taifa, with lessons broadcast throughout the day, Monday to Friday.

“The children miss their friends and being at school, but thanks goodness they can continue with their education from home. Thankfully we have Azuri solar TV and they can watch and learn the same as if they were at school,” said Hellen Awour, mother of 4 from Ngunya, Siaya, Kenya.

Rose Adeny, from Kolwenge, Siaya in Kenya, who has 3 school children at home added: “Because we have Azuri solar at home, we are able to listen and stay up to date with the news and government information being shared, but just as important, the children can continue their studies and not be left behind.”

Azuri has been operating in sub-Saharan Africa since 2012 with presence in Kenya, Tanzania, Uganda, Zambia and Nigeria.

Azuri has coupled off-grid solar with energy-efficient smart TVs, rechargeable radios, satellite entertainment, and a range of other appliances and services to bring modern digital technology to off-grid households.

18 March 2020: Tembo Power has signed a Joint Development Agreement with Metier, an independently owned private equity fund manager, for its Kaptis project, a 14.7 MW run of river hydropower project in Kenya, together with its partner WK Construction, a leading contractor in the field of hydropower in sub-Saharan Africa. This agreement now allows the partners to appoint lenders and prepare for financial closing, expected this year, and to start construction.

“Tembo Power is delighted to partner with Metier, a reputable and experienced infrastructure fund manager in Sub-Saharan Africa, supported by the main development finance institutions active in the renewable energy field. Such agreement demonstrates the thoroughness of Tembo Power’s development approach, its compliance with the most stringent international standards, and paves the way for extended collaboration with Metier and other key players in the industry.” – Raphael Khalifa, Founder, Tembo Power.

Tembo Power started the development of Kaptis (14.7 MW), in Western Kenya, in 2013 after its Kenyan partner Humphrey Mulindi identified the site and conducted preliminary investigations to assess its actual potential. Since then, the company has expanded its Kenyan portfolio with additional 17 MW, 17 MW and 24 MW hydropower projects, that are currently in development, in order to bring sustainable hydropower to Western Kenya, currently fed by power imports from Uganda, and diesel power generation. The project has been developed jointly by Tembo Power and WK Power, the investment arm of WK Construction, a leading pipeline and water works contractor in South Africa.

Metier has demonstrated success in private equity, alternative assets and related advisory services, with specific experience in the renewable power and infrastructure sectors in sub-Saharan Africa. The project will form part of the Metier Sustainable Capital International Fund II, which recently achieved a first close of USD113m. Metier has committed to provide financial support prior to actual financial closing of the project as well as to subscribe to a 40% stake in the project. WK Power will hold 20%, while Tembo Power shall retain 40%. Equity has been fully secured and development financeinstitutions are being appointed for senior debt. WK Construction will be the preferred EPC contractor for the Kaptis project. Tembo Power will benefit from the already existing relationship between Metier and WK Construction, which successfully constructed and commissioned the 5.25 MW Sindila hydropower project in Uganda last year.

“The signature of the JDA marks the next positive step in our relationship with Tembo Power. We are excited about the prospects of the Kaptis project as well as the broader Tembo Power portfolio which fits in well with the fund’s strategic focus on small to medium scale renewable energy projects across the continent and we are looking forward to making an investment into the Kenyan energy sector and delivering clean energy in support of the Kenya Power and Lighting Company’s power supply objectives.” - Michael Goldblatt, Principal, Metier Sustainable Capital International Fund II.

Tembo Power’s objective is to develop, finance and operate power generation assets in sub-Saharan Africa, and is currently raising $100 million for its first batch of projects totaling 187MW across Kenya, Burundi and the Democratic Republic of Congo. Run of river hydropower is the one of the most environmentally friendly energy technologies globally. Projects between 10MW and 50MW offer inexpensive and reliable electricity in areas where the national electrical utilities need it most.

 

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17 March 2020: The African Development Bank and the Government of Nigeria have launched the National Electrification Project (NEP), to address critical energy access deficits by channeling private sector investments into mini grid and off-grid solutions.

The project, which will be implemented by Nigeria’s Rural Electrification Agency, is a boost to efforts to achieve the target of universal energy access by 2030.

Joint financing of $200 million from the Bank and Africa Growing Together Fund (AGTF) will de-risk and scale-up private sector investment in the off-grid sector, nurturing a business ecosystem conducive to the rapid electrification of Nigeria’s off-grid communities.   

Speaking at the launch held Tuesday, Nigeria’s Minister of State for Power, Mr. Goddy Jedy Agba, thanked the African Development Bank for investing in the project, and highlighted its transformative potential.

“Imagine the impact a project like the NEP will have when it is replicated across rural communities in the country,” he said.

The Bank’s Acting Vice President for Power, Energy, Climate Change and Green Growth, Wale Shonibare, outlined the expected development outcomes of the project.

“Over 500,000 people will have access to approximately 76.5 MW of increased installed power of which 68 MW will be solar generated,” he said.

Eight universities will have access to reliable energy, he added, and 150 female students will receive training on renewable energy solutions. In addition, 20,000 micro, small and medium-sized enterprises (MSMEs) will be supplied with appliances and equipment.

Ebrima Faal, Senior Director for the African Development Bank in Nigeria, said the NEP and other Bank-supported energy projects had been carefully designed to ensure that Nigerians have better access to reliable, affordable and safe power.

The NEP is aligned with the African Development Bank’s New Deal on Energy for Africa, the High 5 priorities and the Bank’s Climate Change Action Plan. The project is also aligned with the Federal Government of Nigeria’s Rural Electrification Strategy and Implementation Plan (RESIP) and the Power Sector Recovery Programme, which has the objective of increasing private investments in the energy sector.

16 March 2020: The African Development Bank, the European Commission, KfW, the Clean Technology Fund, Norfund, and other investors have committed nearly $160 million to the first close of the Facility for Energy Inclusion or FEI.

FEI is a targeted $400 million fund to improve energy access across Africa through small-scale renewable energy and mini-grid projects. Spearheaded by the African Development Bank, FEI serves as a financing platform to catalyze financial support for innovative energy access solutions. The Bank, as the Facility’s anchor sponsor, has put up $90 million in financing. That sum includes $20 million that the Bank is providing in its capacity as the implementing agency of the Clean Technology Fund.

“After three years of hard work, we are pleased to see the second and larger piece of our energy access debt funding platform — FEI — up and running on the back of very significant commitments from our partners. We look forward to seeing FEI catalyze financing for new energy sector business models and accelerate our efforts to electrify Africa,” said Wale Shonibare, African Development Bank Acting Vice-President of Power, Energy, Climate & Green Growth.

In addition to the Bank’s commitment, the European Commission committed €25 million to the Fund, the Norwegian Investment Fund — also known as Norfund — committed $23 million, and German Development Bank KfW committed €25 million. FEI will also include a $10 million Project Preparation Facility (PPF) from the Global Environment Facility that will provide reimbursable grants for transaction advisory to facilitate financial close.

“Norfund is pleased to participate in this new facility which makes debt financing available to smaller scale renewable power projects in Africa. We anticipate that the facility will be successful in attracting private capital to this segment of the market”, says Mark Davis, Executive Vice President, Clean Energy at Norfund.

“With our investment in this flagship fund, KfW on behalf of the German Government emphasizes its commitment to work with other development finance institutions to improve access to clean energy in Africa. Our junior equity investment aims at mobilizing public equity and private debt investors to scale up the financial means available for innovative renewable energy projects like new mini-grids to electrify Africa” said Babette Stein von Kamienski, Head of Division Infrastructure, Southern Africa at KfW.

The Facility supports small-scale Independent Power Producers (IPPs) delivering power to the grid, mini-grids and captive power projects. Projects in sub-Saharan African countries where electricity access rates are comparatively lower receive priority. Other eligibility criteria include the requirement to use renewable energy technology, to have capital expenditure of less than $30 million and generation capacity below 25MW. Initial pipeline projects have been identified in Burundi, Cape Verde, Madagascar, Malawi and Mozambique.

FEI is managed by LHGP Asset Management, part of Lion’s Head Group, a fund manager focused on bringing innovative financial solutions to emerging markets and selected through an international competitive process. “As Fund Manager, we are excited that the limited partners have given us a flexible mandate to provide tailored financing solutions to this exciting industry which has the potential to make green growth a reality in Africa. By focusing on smaller renewable energy producers, FEI will contribute to the electrification of Africa, in particular in more remote and traditionally neglected parts of the continent,” says Clemens Calice, Co-CEO of LHGP Asset Management, the Fund Manager of FEI.

The Facility’s first close was reached on 3 December 2019.

3 March 2020: Umeme Limited, Makerere University, The Rockefeller Foundation, and Power for All –a global charity dedicated to accelerating the end of energy poverty–and a coalition of energy companies launched an integrated energy pilot to test new ways of accelerating energy access, stimulating customer demand and improving grid performance in Uganda that will primarily benefit poor and rural areas. 

The coalition, known as Utilities 2.0, has named the pilot “Twaake” (or “Let’s light” in Luganda).

The pilot areas include Kiwumu, Nyenge and Namasumbi villages in Mukono District. The pilot will establish whether appliance financing can accelerate the productive use of electricity as well as establish whether the integration of utility operations with distributed renewable generation (DRE) can create more economically viable connections, faster.

The pilot is designed to support Uganda to achieve universal energy access before 2040. Today, one-fourth of Ugandans have energy access with poor and rural areas suffering the biggest shortages. Simultaneously, energy off-take has failed to keep pace with Uganda’s generation growth, leading to increased pressure to stimulate energy demand across the country, to ensure profitability and long-term sustainable demand growth. Based on grid economics across Africa, traditional grid extension can’t solve these pressures alone.

“Umeme is committed to exploring new ideas, approaches, and technologies that can deliver value to our customers and the public. We believe that this pilot will reveal new ways in which we can deliver on our mandate and support the government agenda of accelerating access to clean energy,” said Umeme CEO Selestino Babungi. 

“For too long centralized grid-based utilities and decentralized renewable energy companies have worked in silos,” said Power for All’s CEO Kristina Skierka. “Neither traditional utilities nor DRE providers can end energy poverty alone. By working together, we can leverage comparative strengths and achieve Sustainable Development Goal 7 (SDG 7).”

In addition to Umeme, the Utilities 2.0 Uganda pilot involves several private sector companies, including Fenix International, East African Power (EAP), Equatorial Power, EnerGrow, and NxtGrid/ZOLA Electric.

The work is being funded by The Rockefeller Foundation as part of its Power Imitative to end energy poverty.

“This pilot is an important demonstration of how utilities can integrate distributed energy technologies into their service areas,” said Clare Boland Ross, Managing Director of The Rockefeller Foundation’s Power Initiative. “We need to see more pilots like Twaake that can help other progressive governments, incumbent utilities and off-grid companies explore an integrated electrification approach, advancing a blend of grid-extension and off-grid electrification, which can help serve the needs of poor and rural areas.”

Power for All will provide regular updates on the progress of the Uganda demonstration, and also expects to expand the initiative to other countries with like-minded utilities. If you are interested in joining the Utilities 2.0 consortium, please email This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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About Power for All: Power for All is a global coalition campaigning to accelerate the end of energy poverty by scaling distributed renewable energy solutions. The campaign represents more than 300 business, finance, and civil society organizations focused on decentralized renewables, including household and business solar, mini-grids and productive use appliances.

About Umeme: Umeme Limited is Uganda’s leading electricity Distribution Company, listed on the Uganda Securities Exchange and cross-listed on the Nairobi Securities Exchange. The Company operates a 20-year electricity distribution concession that started in March 2005. Umeme is mandated to operate, maintain and upgrade of electricity distribution infrastructure, electricity retail and provision of related services.

About The Rockefeller Foundation: The Rockefeller Foundation advances new frontiers of science, data, and innovation to solve global challenges related to health, food, power, and economic mobility. As a science-driven philanthropy focused on building collaborative relationships with partners and grantees, The Rockefeller Foundation seeks to inspire and foster large-scale human impact that promotes the well-being of humanity throughout the world by identifying and accelerating breakthrough solutions, ideas, and conversations.

2 March 2020: NEoT Offgrid Africa (NOA) has closed a receivables securitization program with Zola Electricity Côte d'Ivoire (ZECI - a joint venture between EDF and Zola Electric) which aims to equip more than 100,000 households with solar home systems in Côte d'Ivoire, mainly in rural and peri-urban areas. NOA, majority-owned by Meridiam, is the first investment platform to set up a receivables securitization program in the financing of off-grid energy projects in Africa. Its objective for this deal is to reach a portfolio worth 40 million euros.

Through this innovative financing mechanism, NOA enables ZECI to focus on the commercialization and deployment of clean energy supply solutions in remote areas. With its securitization program, NOA bears financial risks related to the “rent-to-own” scheme whereby customers can become owners of the solar kits at the end of the rental period. In order to reach a mostly unbanked population, payments are made via a mobile money platform.

NOA is leading the financial structuring of the entire project. As part of this operation, NOA has mandated Crédit Agricole CIB (CACIB), Société Générale CIB and Société Générale Côte d'Ivoire (SGCI) to arrange the financing, whereby SGCI has extended a loan in local currency (XOF) whose committed amounts will vary monthly depending on the characteristics of the client portfolio. The loan is guaranteed by the African Development Bank (AfDB) and CACIB, while the Grameen Crédit Agricole Foundation will be in charge of monitoring the social and environmental performance of the project.

Solar energy is particularly suited to the African continent, being able to operate outside the transmission and distribution grids, thus making it possible to supply isolated households as well as entire cities. In its study "The Grid won't connect Africa but solar can", the consulting firm Kleos Advisory estimates that nearly 120 million households (approx. 600 million people) on the African continent do not have access to energy. With each household spending an average of $200 per year on energy services, the market for companies offering off-grid solar solutions for individuals is estimated at $24 billion.

“NEoT Offgrid Africa is really proud to have set up this first of a kind innovative financing scheme, stated Philippe Ringenbach, managing director of NEoT Capital. Financing needs for energy access in Africa are huge, but most of the times very challenging for private investors. This deal will surely position NOA as a key player for financing SHS and other off grid solutions (such as mini grids and C&I installations), enabling to provide much more energy access to people and industries in Africa.”

“We are delivering sustainable and resilient infrastructures and especially supporting energy transition and access to energy in Africa, as illustrated by the 15 projects we are developing, financing and managing on the continent, added Mathieu Peller, Meridiam COO Africa. With this project, led by NOA, we are contributing to the emergence of alternative financing methods and innovative solutions in the African energy sector, where demand, particularly in the offgrid sector, is very high.”

 

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About NEoT Offgrid Africa: NEoT Offgrid Africa (NOA) is an investment platform designed to support Africa's energy transition by addressing the issues of energy access and zero-emission mobility. Founded and owned by Meridiam (as majority shareholder), EDF and Mitsubishi Corporation, NOA provides its customers with innovative financing solutions to remove barriers to upstream investment, deployment of new technologies and commercial risk management. NOA is managed by NEoT Capital, which brings together a team experienced in financial structuring and clean energy solutions, and relies on international strategic partners to provide the financial and operational support needed to develop a carbon-free world.

About Meridiam: Meridiam is currently developing and financing 15 projects in Africa. All together amounting to more than EUR 3 billion of capital expenditures. Meridiam is strategic partner of 2020 Africa France Summit to be held in Bordeaux from 4 to 6 June 2020. Meridiam was founded in 2005 by Thierry Déau, with the belief that the alignment of interests between the public and private sector can provide critical solutions to the collective needs of communities. Meridiam is an independent investment Benefit Corporation within the meaning of French law. It specializes in the development, financing, and management of long-term and sustainable public infrastructure projects and assets in the three core sectors: mobility, energy transition and social infrastructure sectors. With offices in, Addis Ababa, Amman, Dakar, Istanbul, New York, Luxembourg, Paris, Toronto and Vienna, Meridiam currently manages 7 billion Euros of assets, and more than 75 projects and assets to date. Meridiam is certified ISO 9001: 2015, ISO 26000 Advanced by VigeoEiris and operates on a proprietary methodology in relation to ESG and impact based on UNSDGs.

27 February 2020: The Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI-OGEF), managed by Lion’s Head Global Partners (LHGP), today announced a $10 million debt investment in d.light, a leading innovator of solar energy products.

“Last month at Davos we announced that d.light has officially impacted the lives of 100 million people. With this investment by FEI-OGEF, we will be in a position to bring reliable solar energy to millions more,” said d.light CEO Ned Tozun.

Commenting on the investment, Harry Guinness, Fund Manager for FEI-OGEF at Lion’s Head said, "d.light has built impressive PayGo SHS operations in Kenya and Uganda that leverage the firm’s diverse and high quality product line, robust supply chain infrastructure, innovative and effective retail model and best practice customer management systems. OGEF is excited to help the company scale up operations in critically underserved markets to maximise energy access impact. Our investment provides the working capital needed to scale up activities in particular in Nigeria, Tanzania, Zambia, and Ethiopia.”

“The majority of d.light’s customers in Africa have been able to leap-frog the grid entirely, which is particularly important as the world continues to grapple with the dangerous consequences of climate change” Tozun said. “Already d.light products have off-set the equivalent of the combined annual carbon footprints of Kenya and Uganda. We are excited to be working with investors like FEI-OGEF who realize the value and the opportunities of the solar energy market”.

 

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About d.light: Founded in 2006 at Stanford, d.light is a global leader in solar energy, dedicated to providing the most reliable, affordable and accessible solar lighting and power systems for people living in the developing countries. d.light currently provides distributed solar energy to households and small businesses in 70 countries and has impacted over 100 million lives. Innovative funding models have made d.light easily affordable, while sustainable designs have established confidence in the sustainability of solar energy. For further information about d.light visit www.dlight.com.

About the Off-Grid Energy Access Fund: The Facility for Energy Inclusion’s Off-Grid Energy Access Fund (FEIOGEF) offers flexible financing solutions to companies in sub-Saharan Africa that provide affordable renewable energy to communities living off the grid. The Fund invests via a range of debt instruments, including receivables lending, inventory finance, other working capital lending and unsecured corporate debt, in order to increase the availability of local currency debt and build the capacity of local capital markets. FEI-OGEF is sponsored by the African Development Bank, and received catalytic investments from the Nordic Development Fund, European Union, All On and KfW,which unlocked additional capital from public and private sector investors including the Global Environment Facility, Calvert Impact Capital and Prudential Insurance.

About Lion’s Head: Lion’s Head is a specialized investment bank based in London, Lagos, Nairobi and New York, which provides financial advisory and investment management services across a range of sectors, including agriculture, energy, financial services, and infrastructure with a focus on innovative ways to increase capital markets engagement for businesses and governments in sub-Saharan Africa. As a Fund Manager, Lion’s Head has approximately $500m AUM. In addition to the Off-Grid Energy Access Fund, Lion’s Head is the fund manager for the parallel FEI On Grid facility, offering debt on a project finance basis to developers, IPPs and other renewable energy platforms in Africa, and the African Local Currency Bond Fund, created by KfW and supported by FSDA and various DFI and private investors to anchor public debt issuances.

20 February 2020: Azuri Technologies announced its  Brighter Lives Initiative, aimed at bringing more rural women into the off-grid solar sector.

Azuri hosted its inaugural Women in Solar event at the British High Commission last night, where Azuri CEO Simon Bransfield-Garth launched the new initiative. The initiative will provide employment and training to 250 new female recruits.

Women currently make up 35% of Azuri’s rural workforce in Kenya. Azuri’s CEO said the company is committed to increasing female representation, with the objective that 50% of all new hires in 2020 will be women.

“At Azuri, we are committed to equality, fairness and respect and we recognise the solar energy sector offers women a source of well-paid employment with strong opportunities for career advancement,” explained Azuri CEO Simon Bransfield-Garth.

“We understand that empowering women brings huge benefits to our business and on the social front is critical to eradicating poverty and accelerating economic development.”

Azuri’s Brighter Lives initiative includes tailored recruitment specifically targeting rural women who are largely under-represented in the workplace. The company will deliver an enriched training curriculum across its regional training centres, which offer a flexible working environment with additional guidance given on balancing work with family duties and unlocking financial services previously unavailable to them.

The British High Commissioner, Jane Marriott said, “Today’s launch of Brighter Lives Initiative is a significant step towards supporting tackle some of the barriers women face. I am confident this Initiative will light the path for many more women to step up and change Africa’s future for the better.”

New recruits will be equipped with an Azuri Smartphone to help manage and track tasks and access learning and coaching tools. Female agents will also be invited to join internal social networks where they can connect with other women to learn, share and grow in their roles and responsibilities.

Through a partnership that commenced in 2018, leading consumer goods company Unilever’s Sunlight Brand will also add a boost to this initiative and reinforce its synergy with Azuri. The two firms came together to bring solar to millions of off-grid homes across Kenya, , offering modern goods and services to enhance family life.

Justin Apsey, Unilever East Africa CEO, commented, “Unilever welcomes Azuri’s Brighter Lives Initiative as we expand our Azuri-Sunlight partnership in rolling out renewable energy and sustainable solutions that respect gender equality. By creating and supporting opportunities for women in society and the economy, there couldn’t be a better way to lead in creating a brighter future for all Kenyans as we turn the world into a more prosperous place to live for everybody.”

The Brighter Lives Initiative also boasts a Mentorship Programme that supports women in developing their leadership potential.

Azuri’s Women in Solar Event, hosted at the British High Commission in Nairobi, was attended by representatives from the off-grid solar industry  who heard from women directly benefiting from off-grid solar, be it through employment opportunities, or freedom to enjoy other activities.

Azuri has been operating in sub-Saharan Africa since 2012 and has sold more than 200,000 systems to date.

In Kenya alone, Azuri has already invested around KES 2Bn to date with access to a further KES 2Bn in debt funding.

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