EEP and AECF bring together investors and renewable energy businesses

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PRESS RELEASE 

11th December 2018, Nairobi, Kenya – The Africa Enterprise Challenge Fund (AECF) and the Energy and Environment Partnership Trust Fund (EEP Africa) are hosting an investor forum that brings together financiers and companies from across the world to find investment opportunities in renewable energy businesses operating in Africa. The forum is an investor to business (I2B) match-making platform that assists small and medium-sized enterprises (SMEs) broker deals that will expand and grow their businesses and contribute to the transformational agenda in Africa.

“World’s economy is driven by SMEs, entrepreneurs and start-ups. Most financiers and donors recognise the importance of the early-stage investment market in the creation of new jobs especially for women and youth and the development of the private sector in the clean energy sector in sub Saharan Africa“ Christian Fellner, Ambassador of Austria.

The private sector is the key engine for job creation accounting for 90% of all jobs in the developing world with SMEs accounting for the majority of these jobs. Despite the important role they play, SMEs cite access to affordable financing as a major hindrance in their operations and growth.

“Financing energy programmes is limited by domestic constraints and more comprehensively by context challenges that hinder an enabling private sector investment. Currently, energy access financing is beginning to penetrate the hard to reach markets – in rural, transitioning and fragile markets. Businesses working in such markets need to mobilise additional financing to sustain growth. Development capital blended with commercial funding can therefore provide the total financing needed by the projects to create transformative impact,” Paula Kermfors, Senior Programme Manager, Embassy of Sweden.

“From our experience the main gap in accessing finance for most SMEs is mainly due to the limited scope of financial products available that are suitable for businesses targeting the rural communities in Africa. This has meant that at their growth stage most businesses struggle to get financing for their businesses,” Daniel Ohonde, CEO, The AECF.

At the same time, investors have indicated difficulties in finding businesses that they can invest in.

“There is limited information available on the renewable energy sector at the country level and existing pipeline ready for investment. Platforms like our Investor Forum are needed to provide investors the opportunity to meet potential businesses face-to-face, make real connections to companies and the people driving the businesses and assess prospective returns for renewable energy projects across the African continent,” Lauri Tuomaala, EEP Head of Portfolio and Finance.

The Investor Forum is a one-day workshop that brings together over 40 investors and project developers from across the world to unlock additional investments in the renewable energy sector. The investors are provided access to a selected and pre-screened pipeline of clean energy businesses that have been funded by the AECF and EEP. The businesses present at the forum were selected based on technology and readiness for follow-on investment.

About Energy and Environment Partnership (EEP) Trust Fund
EEP Africa is a multi-donor trust fund providing early stage grant and catalytic financing to innovative clean energy projects, technologies and business models. Since 2010 EEP has channelled more than EUR 57 million to 200+ projects with positive impacts on lives and livelihoods in 15 countries in Southern and East Africa. EEP is hosted and managed by the Nordic Development Fund (NDF). Funding partners for EEP are Austria, Finland and NDF. Implementation support is provided by KPMG.

For more information:
Lauri Tuomaala
Email: info@eepafrica.org

About The AECF
AECF is an Africa-based USD $356 million Enterprise Challenge Fund that works with the private sector on a risk sharing basis across 26 African countries to reduce poverty. It provides catalytic funding as grants or zero interest loans to private sector businesses that have a positive impact on the rural poor in Sub-Saharan Africa. The fund awards grants and/or loans to businesses focused on agriculture, agribusiness, renewable energy and adaptation to climate change with the aim of improving household incomes and reducing rural poverty. The fund is supported by Australia, Canada, Denmark, The Netherlands, Sweden and United Kingdom governments, international financial institutions, Consultative Group to Assist the Poor (CGAP) and IFAD.

For more information:
Linda Odhiambo
Email: lodhiambo@aecfafrica.org

Awarding of EEP PoY 2018 closed the busy Rwanda Energy Week

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The latest EEP Africa Knowledge Exchange Forum (KEF) capped off the Renewable Energy for Sustainable Growth – Rwanda Energy Week in Kigali. The event attracted over 120 specialists with lively discussions on mini-grids, private sector experiences and financing. Participants included project developers, equity and impact investors, researchers, and representatives of renewable energy associations, development banks, multilateral and bilateral organisations, and government institutions.

EEP Africa KEF’s are designed to enable experiences and learning to be shared across projects and to facilitate networking among EEP project developers and other players in the renewable energy sector. The KEF Kigali on 9 November 2018 was one of several special events held during Rwanda Energy Week, which was hosted by the Energy Private Developers (EPD). EEP Africa collaborates with local industry associations to increase its impact and was pleased to hold its KEF alongside events by EPD, GOGLA and the Clean Cooking Alliance.  

The opening speakers emphasized current opportunities in the sector. Tom Rwahama, Energy Sector Secretariat Coordinator from the Rwanda Ministry of Infrastructure highlighted energy access as one of the government’s key priorities for economic growth. He shared Rwanda’s ambitious energy sector targets: by 2024, the government aims to provide universal energy access, with 48% of energy connections coming from off grid systems. Ivan Twagirashema the EPD chairman, highlighted the role of the private sector in fulfilling government targets by fostering investments that accelerate rapid electrification. Charles Wetherill, Program Manager of the EEP Africa Trust Fund at the Nordic Development Fund (NDF), emphasized the EEP portfolio’s value as a pipeline for downstream investors and a source of knowledge and learning on the broader policy and market environment.

The keynote speech was given by Chaim Motzen, founder of Izuba and co-founder/former managing director of Gigawatt Global, who shared his experience and lessons learned from the first IPP project in Rwanda, an 8.5 MW solar plant. He outlined key learning points in developing a project of this scale, such as working with a strong local partner and the need for government support.

The main panel at KEF Kigali focused on Mini-Grids and included findings and insights from the recent EEP Africa in-depth study on mini-grids. A second panel on Attracting Financiers for Renewable Energy Projects included both project developers and different types of investors. Project preparedness and risk versus innovation were cited as some of the key factors in determining investment potential. Attendees were also able to discuss key issues more informally during Communities of Knowledge roundtables on: the role of industry associations; standardised KPIs; productive uses in mini-grids; women in value chains; and regional replication/local ownership.

 

Finally, the EEP Project of the Year 2018 was awarded during the KEF. This annual award highlights one EEP project for its outstanding innovation and success, offering public recognition that can attract investors and help advance the business to the next level of growth and sustainability. Shortlisted applicants, Meshpower (mini-grid developer in Rwanda) and Vitalite (SHS company from Zambia), presented their projects during the KEF and a panel of experts chose the winner based on the merits of the project. Lauri Tuomaala of EEP Africa announced Vitalite as the EEP Project of the Year 2018   for pioneering PAYG solar in Zambia. Wim Jonker Klunne of EEP Africa and Kelly Easton Programme Director for Africa Utility Week (AUW) jointly presented the award to Mike Matokwani, Finance Director of Vitalite. By combining quality products with an innovative approach to staff development and community engagement, Vitalite has experienced impressive growth in recent years. As part of the award, a representative of Vitalite is invited to speak at the 2019 AUW in Cape Town, South Africa.

The KEF Kigali was a dynamic event of knowledge sharing and networking. Upcoming EEP Africa events include an East Africa Investor Forum in Nairobi in December 2018 and a new Call for Proposals (CfP15) in 2019.

EEP Africa at the Clean Cooking Investment Forum in Rwanda

EEP participated in the first-ever Clean Cooking Investment Forum on 6 November in Kigali. The event convened more than 250 business leaders, investors, donors, and government representatives from over 40 countries to collaborate on the development of a global and sustainable clean cooking industry at scale.

 The event was co-hosted by the Clean Cooking Alliance  and Energy Private Developers Rwanda.  Several EEP supported project developers were featured on panel discussions including Burn, Inyenyeri, Simgas, Envirofit and Practical Action. The event highlighted the demand for growth in this sector to support the SDGs and the need for significant further investment.

 The EEP Africa Head of Portfolio and Finance, Lauri Tuomaala, was a panelist on “Market Developer Perspective” and shared key market insights from the latest EEP call for proposals organized in 2018. Based on market intelligence from the call, the clean cooking industry is developing rapidly. New business models and innovations are being introduced, and significant lessons are being deployed from the SHS market. The Kigali event on investment highlighted the same market transformation observed by EEP.

 EEP aims to continue developing the clean cooking sector and to support project developers in this sector in the 15 Southern and East African countries covered by EEP.

Unlocking Solar Capital Africa

EEP Africa also participated in the 3rd Unlocking Solar Capital Africa hosted by Solarplaza and GOGLA during Rwandan Energy Week. EEP Africa M&E Adviser, Anise Sacranie, attended the event along with over 350 representatives of development banks, investment funds, solar developers, IPPs, EPCs & other stakeholders. GOGLA shared its efforts to develop impact metrics and key performance indicators for the PAYG business model in collaboration with Lighting Global. The event also highlighted the challenges of accessing financing as one of the main barriers to exploiting the significant solar potential in Africa. This was particularly evident by the disparity between the number of financiers and project developers in the room. EEP Africa spoke with many of the investors present about how the Fund can support financing initiatives through its upcoming Investor Forum and other activities.

 

Photo gallery from EEP Knowledge Exchange Forum
Credit: High Media Studio, Rwanda

 

 

 

 

EEP Africa shares experiences on gender and energy in Ethiopia

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EEP Africa was a guest speaker at a course on Power Production Planning and Energy Trading  that was organized by Nordic Energy Research in Addis Ababa on 22-23 October 2018. EEP’s gender specialist, Ms. Lotta Wilkman, presented insights and experiences on gender and energy in Africa with the audience of Ethiopian project developers and other players in the renewable energy sector.

The course was part of a joint initiative launched in 2017 by the five Nordic Prime Ministers that seeks to bring Nordic Solutions to Global Challenges. This initiative aims to drive progress towards the UN 2030 Agenda and the Sustainable Development Goals. The Nordic countries support the Ethiopian energy sector through a number of bilateral and multilateral programmes. More than 90% of Ethiopia’s installed electricity generation capacity comes from hydropower, so there has been a strong emphasis on transferring Norwegian know-how on hydro projects. However, with a growing and mostly rural population of more than 100 million people, the need and market potential for solar-home-systems and other off-grid solutions is substantial.

Nordic Solutions to Global Challenges

The Nordic Prime Ministers’ Initiative involves six flagship projects presenting Nordic knowledge in gender equality, sustainable food systems, smart welfare solutions, sustainable cities, regional energy co-operation and climate solutions. The Nordic Energy Solutions project targets East Africa and addresses the goal of “Sustainable Energy for All” (SDG7). It aims to increase renewable energy, facilitate international collaboration, and promote investment by utilising Nordic expertise in wind, hydro and geothermal projects.

Nordic countries have a long history of cross-border energy cooperation, with a mixed portfolio of renewable energy companies and technologies. The robust regulatory frameworks and transparent energy markets in the Nordic region could serve as a benchmark for the Eastern Africa Power Pool (EAPP). The EAPP initiative covers seven East African countries (Burundi, Democratic Republic of Congo (DRC), Egypt, Ethiopia, Kenya, Rwanda and Sudan) with an objective to optimize the development of energy resources in the region and to enhance electricity access to all people through regional power interconnections.

EEP Gender Experiences Applied to Ethiopia

Gender equality is a priority of the Prime Ministers’ Initiative and a cross-cutting issue in the development initiatives of all Nordic countries. Ms. Wilkman presented key findings from the EEP in-depth study on gender, Understanding the Role of Women and Girls in Renewable and Energy-Efficiency Projects, and highlighted specific gender-related benefits and challenges in hydropower and other larger utility scale projects. Considering the needs of women, usually representing half of the population affected by the project, is an important question of risk and expectations management. Applying gender-responsive approaches to construction projects and guaranteeing equal access to economic opportunities can enhance the success of these projects. There are some differences between Ethiopia and the 15 countries covered by EEP, in terms of the mix of energy sources and level of women’s participation. However, many of the core challenges linked to rural energy poverty and gender inequality are similar throughout Sub-Saharan Africa and lessons from the EEP study can be shared across the region.

The course participants indicated a commitment to promoting gender equality in the Ethiopian energy sector. Discussions focused on acknowledging current barriers, considering the specific needs of women in decision making positions in energy projects, and identifying ways to attract more women to apply for jobs and develop careers in this male-dominated field. The Ethiopian participants appreciated learning from the best practices of EEP-supported projects and gaining a better understanding of the development benefits and business case of engaging in gender equality.

Nordic Business Opportunities in Ethiopia

EEP Africa also participated in a seminar on Nordic Solutions for Business Development in Ethiopia on 24 October. This event, which was organized jointly by the Royal Norwegian Embassy and the Embassy of Sweden in Addis Ababa, attracted a large number of Nordic and local companies. The seminar presented Nordic expertise and solutions in the context of the Ethiopian energy sector and highlighted the inspiration that the common Nordic energy markets could provide in the region. In addition to energy, the seminar looked at wider opportunities and challenges that the Ethiopian business landscape offers for Nordic companies and financing instruments.

Ethiopian project developers in both events indicated wide interest towards EEP and expressed wish to expand EEP operations to Ethiopia. Currently, the Nordic Development Fund (NDF), which hosts and manages EEP Africa, supports innovative climate change projects in Ethiopia through its Nordic Climate Facility.

Renewable Energy for Sustainable Growth – Rwanda Energy Week

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Under the patronage of the Ministry of Infrastructure and Rwanda Development Board (RDB), Energy Private Developers (EPD) in partnership with the Global Alliance for Clean Cooking, Africa-EU Renewable Energy Cooperation Programme (RECP), the World Bank, the European Union, EEP Africa, Solar Plaza, GOGLA, Shell Foundation, bfz and many others organize the 2nd Edition of the RENEWABLE ENERGY FOR SUSTAINABLE GROWTH which falls under Rwanda Energy Week, on 5th -9th November 2018.

The Rwanda Energy Energy Week will host four energy forums:

  1. The Clean Cooking Investment Forum, on 5th-6th November 2018 at Kigali Convention Center. The Forum is organized by Energy Private Developers (EPD) and Global Alliance for Clean Cooking, the forum is a first-of-its-kind, private sector-oriented conference to convene business leaders, investors, donors and government representatives to collaborate on developing an industry at scale to deliver modern, clean cooking solutions around the world, with a special focus on East Africa. For more about the forum and participation, please visit: https://clean-cooking-investment-forum.b2match.io/ 
  2. Unlocking Solar Capital Africa Forum, its 3rd edition will take place on 7th-8th November 2018 at Kigali Convention Center. The conference is organized by SolarPlazza in partnership with GOGLA and it is payable event. The conference will bring together hundreds of representatives from development banks, investment funds, solar developers, IPPs, EPCs & other stakeholders. 350+ decision makers will gather to engage in extensive discussions to solve Africa’s solar energy funding gap – and get projects realized. For more about the conference and participation, please visit: https://africa.unlockingsolarcapital.com 

  3. Re-energizing Agriculture through Solar Power forum will take place on 8th November 2018 at Kigali Convention Centre. This forum will gather policy makers and private sector in energy and agriculture to discuss the role and experience of solar energy, mainly:
  • Opportunities and challenges of solar for agriculture in Rwanda
  • Solar irrigation,
  • Solar solutions for agribusinesses (drying, cold storage, processing….)
  • Financing solar solutions for agriculture (credit, leasing, microfinance).

The participation to this forum is free of charge for all invitees. 

EEP Knowledge Exchange Forum will take place on 9th November.

Welcome to EEP Knowledge Exchange Forum in Kigali, Rwanda

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In collaboration with Energy Private Developers (EPD) of Rwanda and as part of the Rwanda Sustainable Energy Week, EEP Africa will host its 7th Knowledge Exchange Forum (KEF) on Friday November 9, at Kigali Convention Center, Rwanda.

See the agenda here >>

 

Background

The EEP Knowledge Exchange Forum, organised since 2014, is an active event of discussions, sharing of experiences and a place to network with players in the renewable energy and energy efficiency sector. Feedback from previous KEFs has enabled us to develop a highly relevant event specifically tailored for the needs of project developers. Based on its core idea of networking, the KEF offers ample opportunity to learn and build new business relationships.

Programme

Following the recent release of the EEP in-depth study on mini-grids, KEF Kigali will have a focus on mini-grids but there will be a lot on offer for other sectors as well.

The day will be built around a combination of interesting presentations and casual networking. Highlights of the event include:

  • A sharing of lessons learned by a successful solar PV project developer, who will offer key insights into project development in Rwanda.
  • A session with investors, who will share their perspectives on what they are looking for in renewable energy projects and companies.
  • Roundtable discussions during which participants can share their own successes and challenges.
  • Presentations by the shortlisted candidates for the EEP Project of the Year 2018. The winner will be announced at the end of the day.

The EEP Knowledge Exchange Forum audience is typically half project developers (EEP supported and others) and half other key stakeholders in the renewable energy and energy efficiency sector in the region. Previous KEFs have attracted around 100 participants each.

Registration

To enable participation by a wide audience, the EEP Knowledge Exchange Forum is open for all and free of charge.  The venue and final agenda will be shared with the participants closer to the event.

Edit: Registration to EEP Knowledge Exchange Forum has been closed. 

We look forward to seeing you in Kigali!

Rwanda Sustainable Energy Week

See other clean energy events in Rwanda 5-9 November:

 

It’s time to select the EEP Project of the Year 2018!

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EEP Project of the Year will be awarded for the 5th time at EEP Knowledge Exchange Forum on 9 November in Kigali, Rwanda. See the announcement below and apply for the award!

EEP_ProjectOfTheYear2018_announcement

 

 

Mini-grids ready for primetime, lack support: report

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A new EEP Africa study of dozens of projects says renewable energy mini-grids in Sub-Saharan Africa are generating high-quality grid power, providing 24/7 electricity services, creating jobs and boosting local economies

NAIROBI, September 12, 2018 — Today, the Energy and Environment Partnership Trust Fund (EEP Africa) released a new report, “Opportunities and Challenges in the Mini-Grid Sector in Africa.”  It found that despite improved economics, mini-grids still struggle to receive the financial and regulatory support needed to scale.

 According to an analysis of EEP Africa-funded mini-grids in East and Southern Africa:

  • mini-grids on average create 306 new connections per project
  • connection costs are as low as EUR 200, much less than centralized grid extension
  • mini-grids deliver annual savings per household of EUR 93
  • an average of 36 direct jobs are created per mini-grid project

 “The continuous improvement of mini-grid cost structure presents an opportunity for financiers,“ said Wim Jonker Klunne, EEP Africa’s Lead Coordinator. “Mini-grids can also transform rural villages into local business hubs, and spur local economies by focusing load on agro-processing or social facilities such as schools or hospitals.“

Smart metering, remote asset monitoring and pay-as-you-go technology platforms have significantly improved mini-grid operational efficiency, the report said.

Despite the enormous potential, however, the report found that mini-grids still lack the regulatory and financial support needed to scale.

EEP Africa called on governments to include mini-grids as part of national electrification plans, establish clear permitting and licensing processes to reduce costs for mini-grids developers, and embrace public and donor capital such as results-based financing (RBF) and low-interest loan facilities to mobilize capital and spur mini-grid development.

The International Energy Agency (IEA) has said that mini-grids have the potential to serve as many as 450 million people currently without access to electricity if supportive policies and finance are in place. Mini-grids and other distributed renewable solutions are the least cost option for three-quarters of all new connections needed in Sub-Saharan Africa, where more than 600 million people still lack basic electricity, IEA adds.

Download the Full Report here >>

About EEP

The Energy and Environment Partnership covering Southern and East Africa (EEP Africa) is a multi-donor fund providing early stage grant and catalytic financing to innovative clean energy projects, technologies and business models. EEP Africa is hosted and managed by the Nordic Development Fund (NDF) and, since 2010, has received funding from Austria, Finland, NDF and the UK. The next major EEP event is a mini-grid-themed Knowledge Exchange Forum planned for Rwanda Energy Week in Kigali on November 9.

 Media Contact

William Brent, william@powerforall.org, +34 684 314 268

EEP Mini-Grid Study launch event on 12 September in Nairobi

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Challenges and Opportunities in the Mini-Grid Market – Findings from the EEP Africa Portfolio

EEP Africa, in close collaboration with Power for All, will launch an in-depth study on mini-grids based on findings from the portfolio of pioneering mini-grid projects receiving support as part of the EEP Africa mandate to provide early stage grant and catalytic financing on competitive basis to innovative, private sector-led clean energy projects in Southern and East Africa.

EEP Africa has provided more than EUR 7 million in direct early stage and pilot financing to mini-grid projects in Southern and East Africa. The study highlights findings from these active projects and provides a key learning tool for the growing sector.

The context for mini-grid development varies between countries. The study identifies gaps in the policy and regulatory framework, highlights available support to the sector and specific successes from the EEP Africa portfolio, while at the same time cites persistent challenges to the growth of the sector including barriers to access to market data, lack of proven business models and insufficient coordination among key stakeholders in the power sector as well as with and amongst donors.

Launch of the study and an active panel discussion with key partners and project developers will take place during the Future Energy East Africa Conference in Nairobi on 12 September at 11:30-13:00. The event will take place in the Technical Workshop area on the exhibition floor and is accessible to all. See the updated list of panelists in the Technical Workshop Programme and register for a free visitor pass that gives you access to all of the technical workshops over the course of the two days, 12 to 13 September.

The report will be published on the EEP website after the launch. If you wish to receive a copy directly to your mailbox, please submit your contact details here.