Universal Energy Facility to grant up to USD 10.4 million for renewables in Democratic Republic of the Congo, Madagascar and Sierra Leone 

News

 

The Universal Energy Facility (UEF) – a multi-donor results-based financing facility managed by Sustainable Energy for All (SEforALL) – is signing several grant agreements with mini-grid companies in the Democratic Republic of the Congo (DRC), Madagascar and Sierra Leone in the coming weeks. The grantees will receive financial support to build solar mini-grids in communities without access to clean energy and where other polluting energy sources, such as diesel and petrol generators, charcoal and firewood, are common. 

“Accelerating access to reliable, sustainable and affordable electricity to those most in need is the central focus of UEF and its partners,” said Anita Otubu, Senior Director of the UEF. “This is a big step and the first of many we need to take to continue improving people’s lives in Africa. Access to clean energy is a life-changing step that leads to economic growth, empowering women, reducing C02 emissions, and creating jobs - among other benefits.” 

The USD 10.4 million of additional funding is for 17,628 connections distributed among six companies, benefiting an estimated 88,000 people in 29 communities in the three countries. During the next 12 months, the beneficiaries will construct and commission 29 mini-grids with an estimated 3.7MW of renewable energy capacity installed, leading to an avoidance of approximately 1,800 tonnes of CO2 equivalent emissions per year. 

“Once again, the UEF proves to be a rapid, cost-effective solution for accelerating the deployment of clean energy grants,” said Edward Borgstein, Managing Director at the Global Energy Alliance for People and Planet (GEAPP), a UEF donor. “As a partner, having access to a robust and efficient mechanism to get funds to work is crucial as we seek to accelerate electricity access in some of the world’s most energy-poor locations.” 

Democratic Republic of the Congo 

Despite having an immense and varied energy potential from renewable resources including hydroelectric, biomass, solar and geothermal power; only 49 per cent of its 96 million people have access to electricity, most of them in urban centres, according to the World Bank. As a solution, and to support the government’s efforts to significantly increase power connections, the UEF launched its mini-grid programme in the DRC in October 2022.  

The UEF recently signed the first grant agreement for USD 3.8 million with Electrilac S.A.S, a subsidiary of Green Enesys, with the goal of providing 6,500 new electricity connections and installing 2.5MW of renewable energy capacity. These connections are expected to positively impact over 30,000 people, providing them with new or improved access to electricity. 

“The financial support from the UEF and partners is crucial to promoting a robust and dynamic energy market in the DRC. This will bring sustainable and reliable energy to underserved communities, delivering a catalytic impact in creating more and better jobs, new business opportunities, and in contributing to the sustainable socio-economic development of the region,” said Ranjith Rao, Chief Business Development Officer, Green Enesys “We see this type of support as a win-win situation for our business, but also for the government and the people of the DRC.” 

Madagascar 

According to the World Bank, only 73 percent of the Malagasy population has access to electricity in urban areas and only 11 percent in rural areas.  

To support electrification efforts, the UEF opened its first funding window in 2020, signing grant agreements with two developers for nine mini-grid sites, resulting in 2,496 expected electricity connections. In its second wave of funding, the UEF is signing grant agreements with WeLight, ANKA, Autarsys and Jiro Taratra/Africa GreenTec, totaling USD 5.9 million for an additional 21 mini-grids. This will result in 9,935 new electricity connections and 0.99MW of renewable energy capacity installed. These connections are expected to impact nearly 50,000 people in regions with strong economic growth potential and in sectors such as agriculture and trade by providing new or improved access to electricity.  

"The Government of Madagascar is fully committed to identifying and implementing appropriate strategies to accelerate access to electricity for communities, particularly in rural areas, using appropriate and effective mechanisms,” said Mamisoa Rakotoarimanana, Executive Secretary, Agency for Rural Electrification Development.  “Initiatives such as the UEF are highly appreciated when it comes to identifying key partners to support our strategy while simultaneously delivering substantial results.” 

“At Africa GreenTec, we align our actions with the Sustainable Development Goals (SDGs), including SDG 17: Partnerships for the Goals,” said Moritz Brauchle, Managing Director, Africa GreenTec. “Therefore, we are grateful to have found a strong partner in UEF with whom we can jointly achieve our goal of sustainable impact through renewable energy solutions.” 

To date, the UEF mini-grid programme in Madagascar is the fastest growing and the largest beneficiary of UEF grants.   

Sierra Leone 

The Government of Sierra Leone is committed to significantly increasing the national electrification rate, aiming to reach 92 percent by 2030. This ambitious goal is a response to the current access rate of just 26 percent, which falls to 5 percent in rural areas. With these low electricity access rates, the government recognizes the urgent need to implement electrified mini-grid systems to bridge this gap. 

Since 2020, the UEF has committed over USD 2 million in grant agreements for the deployment of mini-grid projects in two different funding windows. The UEF plans to sign a USD 706,000 grant agreement with Energicity (SL) Limited to develop seven mini-grids. This project is expected to provide 1,193 electricity connections and 0.2MW of renewable energy capacity that will impact the lives of nearly 6,000 people. 

Additionally, the UEF has issued conditional offer letters to developers for the construction of more than 20 mini-grid sites, showing substantial progress in the application process in the DRC, Madagascar and Sierra Leone. After the successful completion of all the requirements, the UEF will potentially extend grant agreements in the coming months. 

More information on the UEF is available here.  

 

Growing our influence and impact – SEforALL’s highlights from 2022 

Opinion

This year Sustainable Energy for All (SEforALL) celebrated its 10-year anniversary. Having started as an initiative within the UN, our sphere of influence and impact on the global sustainable energy movement have evolved greatly over the past decade. 

Our 2022 work demonstrates our ability to build higher ambition, stronger policy and planning, and faster results, all of which are urgently needed to achieve affordable and clean energy for all by 2030 and net-zero emissions by mid-century. 

Of course, our work would not be possible without the support and collaboration of our many partners and funders, who we would like to thank for their commitment to helping us build a better future through sustainable energy. 

As the year comes to an end, now is a good time to look back at what we’ve achieved together. 

Higher ambition 

Our advocacy and diplomacy work aims to build high-level political support for energy access and transition around the world. In 2022, we enabled critical dialogues on energy among global leaders and secured significant new energy commitments from governments, companies, financiers, and others. 

SEforALL Forum 

Co-hosted with the Government of Rwanda, the Forum brought together the global energy, climate and development communities to learn, inspire and collaborate. Our partners used this global platform as an opportunity to launch new partnerships and commitments towards the energy transition. Collectively, they announced an impressive USD 347 million in commitments over the three days in Kigali, along with the launch of several important new initiatives, including Mission Efficiency, a global coalition dedicated to improving energy efficiency.  

Youth engagement at the Forum was extensive, with more than 300 youth bringing their voices to the various Forum sessions. Young people’s futures truly are at stake with the energy transition, so we make it a priority to support them in accessing today’s energy sector leaders. 

Sustainable Energy for All Forum in Kigali, Rwanda
Sustainable Energy for All Forum in Kigali, Rwanda

Ministerial Roundtables  

To foster collaboration among African countries in defining and advancing a just and equitable energy transition for Africa, we organized a Ministerial Roundtable at the Forum in Kigali. There, ten countries agreed on seven transformative actions towards achieving Sustainable Development Goal 7, outlining them in the Kigali Communique, which signals to the global community where support is needed in Africa for energy access and transition efforts. 

As a next step towards garnering this support, we held similar roundtables on the sidelines of the UN General Assembly in September and at COP27 in November. Importantly, the conversation at COP27 was organized as an Africa-Europe Ministerial Roundtable, which we hosted along with the Africa-Europe Foundation. African and European ministers listened to each other and strategized on how to accelerate Africa’s race towards a just and equitable energy transition while working together. 

There is now greater momentum for Europe to support Africa in achieving its energy goals, something that will be aided by establishing a “Africa-Europe Energy Leaders’ Group.” 

Africa-EU Ministerial meeting
Africa-EU Ministerial meeting

COP27 

The UN climate conference was also a major moment for us because of the SDG7 Pavilion, which we again hosted with the Global Energy Alliance for People and Planet (GEAPP). For the second year in a row, the pavilion was the main hub at COP for discussing and showcasing how to unite global efforts on energy, climate and development, and it served as a platform for the launch of several exciting new initiatives. 

With GEAPP and the UN Economic Commission for Africa, we launched the ground-breaking Africa Carbon Markets Initiative at COP27, which aims to support the growth of voluntary carbon markets in Africa for financing clean energy access and transition. With Bloomberg Philanthropies, we also announced our partnership with the government of Ghana to develop an Energy Transition Plan that will provide a detailed, data-driven pathway for the country and its partners to achieve its energy and climate goals. 

 

Energy Compacts 

In 2022, we also continued to promote and secure Energy Compacts along with our UN-Energy partners. Launched at the UN High-level Dialogue on Energy in 2021, this platform has led to nearly 200 approved commitments towards SDG7 and climate goals. Many of these commitments are already being acted upon, with USD 46 billion in investment having already been generated, 88 GW of renewable energy capacity installed, and 2,450 GWh of energy saved through energy efficiency measures, according to the first Energy Compact Progress Report prepared by UN-Energy.   

Several compacts continue to attract new signatories, including those related to No New Coal, Green Hydrogen, Powering Healthcare, and 24/7 Carbon-Free Energy, proving the value of Energy Compacts in mobilizing action. 

Stronger policy and planning 

We help countries establish policies, regulations and plans that enable sustainable energy development. In 2022, we worked directly with countries and stakeholders in their energy sectors on bespoke plans that will attract investment and technical assistance.  

Energy Transition Plans 

These data-driven national plans are created to identify viable pathways for countries to end energy poverty and achieve net-zero emissions while marking opportunities for stakeholders to support these efforts. Nigeria was the first country to develop such a plan in 2021, with the support of the COP26 Energy Transition Council and SEforALL. 

Although it was first unveiled at COP26, the government launched the Nigeria Energy Transition Plan in August this year. At the launch, the World Bank announced it had committed USD 1.5 billion towards the plan for renewable energy, power sector reforms, clean cooking, and additional opportunities.  

We are now working closely with the Office of the Vice-President in Nigeria to help attract the plan’s targeted finance and assistance. Our work is being carried out through our new office in Abuja by a specific team dedicated to supporting the government. 

Ghana has already partnered with us to develop their own Energy Transition Plan in 2023, and we will pursue similar partnerships with Barbados and additional countries as we grow this important body of work with the support of Bloomberg Philanthropies. 

Ghana ETP launch
Ghana ETP launch

Integrated Energy Plans  

We are setting the standard for what a best-in-class integrated energy plan should be and working with partners to make sure countries harness this important framework. 

The plans use geospatial data and tools to identify the efficient integration of on- and off-grid solutions for energy supply (i.e., grid extension, mini-grids, and standalone solutions like solar home systems), while also considering demand-side factors like affordability. Together, this provides vital market intelligence to support investment. 

In 2022, we collaborated with both Nigeria and Malawi to develop their integrated energy plans and launched online platforms for both so country stakeholders can easily access data for their decision-making. 

Research, analysis and tools 

A wide body of research and analysis underpins both our country engagement and global advocacy. In 2022, we developed new lines of research in response to country needs, such as a Powering Healthcare Nigeria Market Assessment and Roadmap, and practical tools to support policy-making, such as our new online Knowledge Hub

We continued to provide thought leadership in the area of sustainable cooling thanks support from the Swiss Agency for Development and Cooperation and the Clean Cooling Collaborative.  We again published our Chilling Prospects research, this time with a wider set of case studies, sectoral cooling data, and analysis of the enabling environment for cooling. And our cooling needs assessment framework has been adopted by the Cool Coalition for its global methodology for National Cooling Action Plans, which several countries have already implemented. 

Faster Results 

The world needs to scale and speed up energy access and transition efforts. Finance really is the lynchpin of progress, which is why we established a results-based finance facility two years ago to catalyse energy projects in Sub-Saharan Africa. Ensuring the fast delivery of electrification projects for critical services like healthcare is also a priority for us, especially given the recent COVID-19 pandemic. 

Universal Energy Facility (UEF) 

The UEF took a dramatic leap forward in 2022 on multiple fronts, thanks in large part to transformative new funding from the GEAPP and the IKEA Foundation. 

A major highlight was the first set of electricity connections being established by mini-grids in Madagascar with projects financed by the facility. Thus far, the facility has paid out results-based grants for 654 electricity connections under its wave 1 mini-grids programme, with thousands more connections anticipating for 2023 across Benin, Madagascar and Sierra Leone. 

Meanwhile, we launched a second wave of mini-grid finance this year for companies operating in Madagascar and Sierra Leone, and a new UEF-supported country, the Democratic Republic of the Congo.  

Nigeria also became a UEF-supported country with the launch of a Standalone Solar for Productive Use programme, which is designed to scale up electricity access to households, and small and medium enterprises (SMEs), while displacing polluting diesel generators. There has been remarkable interest in this programme from energy developers, who will break ground on their projects in early 2023. 

Mini-grid
Mini-grids enable fast and sustainable development in rural areas

Powering Sierra Leone’s Hospitals  

COVID-19 underscored how essential it is for health services to have reliable electricity, which is why our growing portfolio of Powering Healthcare work aims to accelerate electricity connections for health facilities in Africa.  

Following a detailed energy needs assessment in Sierra Leone, we are now managing the electrification of six key hospitals in Sierra Leone with support from the UK’s Foreign, Commonwealth, and Development Office, directly impacting health service delivery and eliminating fuel consumption by adding more than 0.5MWp of installed solar PV capacity to the health sector. 

 

Looking ahead to 2023 

Having achieved the above in 2022, we must now look to expand on both our longstanding bodies of work and nascent initiatives in the year to come. 

We will continue to focus on advocacy and diplomacy to build global ambition and political support for SDG7 and energy transition, notably through engagement in major global fora like the G20 in India and COP28. 

At the same time, we will continue to directly support priority countries, particularly by helping them create stronger policy and regulations with Integrated Energy Plans and Energy Transition Plans that will mobilize finance, as well as directing funding to energy projects through the UEF, which we hope to grow into a USD 100 million facility by the end of 2023.  

We will also support the growth of the Africa Carbon Markets Initiative to attract energy and climate finance to Africa, and we plan to work with countries to grow their domestic renewable energy manufacturing, helping them reap the economic benefits of localized industries. 

Importantly, we will continue to elevate areas of the energy transition that often get overlooked, including ensuring the transition supports gender and intergenerational equity. Along these lines, expanding our efforts to offer training opportunities to women and youth and ensuring their engagement in energy and climate negotiations will be a key priority in 2023. 

Once again, thank you to all our partners and funders, whose support is critical to our work. We value your commitment to ending energy poverty and fighting climate change, and we look forward to another busy and impactful year of collaboration with you in 2023. 

 

Kivu Green Energy tackles one of Africa’s biggest energy gaps

SDG7 News

in a series of stories, Sustainable Energy for All (SEforALL) is profiling five entrepreneurs in Africa who recently received the inaugural “Energy Access Booster” awards, which honors those who are implementing energy access projects, including green mini-grids, sustainable mobility, refrigeration and energy for agriculture and drinking water. The awards are in support of Sustainable Development Goal 7 to provide reliable, affordable and clean energy for all by 2030.

Highlights

Kivu Green Energy (KGE) was awarded an “Energy Access Booster” award for its projects, which aim to support the 83% of the Congolese population without access to electrification.
KGE’s business model is based on developing off-grid solar mini-grids, initially in urban areas, to deliver to energy to hundreds of thousands Congolese households.
KGE’s decentralized solar micro-grids can be installed quickly and provide reliable, affordable and scalable electricity to improve humanitarian assistance, health care and education.

The Democratic Republic of the Congo (DRC) has one of the lowest rates of electrification and energy consumption in the world, with less than a fifth of the urban population having access to energy. Those that do have access often experience irregular and erratic supply service. Most receive their power from self-supplied or neighborhood-owned diesel generators, an expensive, high-maintenance, unreliable and unclean energy source.

The DRC is one of the top 20 energy deficit countries in the world, with 83% of the population without access to electrification, according to Tracking SDG7: The Energy Progress Report 2018 Many households and businesses are too far to be connected to a sufficient power supply. The energy infrastructure required to deliver power installation is often dilapidated and mismanaged. There is also a lack of local technical capacity and training opportunities to bolster a burgeoning renewable energy sector.

Obtaining access to electricity typically requires six different procedures, takes 44 days and is prohibitively expensive for most potential users, according to the World Bank. In addition, there is no smart metering and there is a lack of payment options.

The country is estimated to have 2,929 megawatt (MW) of unmet energy demand. Despite this energy shortage, the DRC has the capacity to generate an estimated 70 gigawatt (GW) of power from solar PV systems. Off-grid solar power has a potentially huge role to play in delivering energy to communities.

Kivu Green Energy (KGE) was established in August 2015 when it acquired the largest commercial energy provider in Beni, North Kivu, near the DRC’s eastern border with Uganda. Since this acquisition, KGE has pushed to convert the company’s diesel generated power to solar PV and storage.

In 2016, KGE oversaw a pilot installation of a 35 kilowatt (kW) solar installation at a university in Beni. In June 2017, KGE installed the first commercial solar PV and storage system in eastern Congo, providing more affordable, reliable electricity to more than 60 homes, businesses, and humanitarian and peacebuilding organizations through a 55kW mini-grid with a 100kVa backup diesel generator.

Customers in Beni have welcomed KGE service because it is less expensive than other available energy options, more quiet than relying on noisy generators, and can power more appliances. “The KGE electricity supply is stable. It is also cheaper than a home solar system, which can cost $4,000 and the result is not always satisfactory because you have to change the batteries every two years as well as other accessories,” said Patrick, a local customer.

KGE’s decentralized solar micro-grids can be installed quickly and provide reliable, affordable and scalable electricity to improve humanitarian assistance, health care and education. They can accelerate economic development; stabilize ICT infrastructure; reduce deforestation and dependence on wood for fuel; and strengthen local security due to the presence of well-lit buildings and street lights.

The venture is headed by Jonathan Shaw, who co-founded KGE with Archip Lobo, a Congolese development expert who now serves as chief marketing officer. The management team consists of both Congolese and Americans with experience in the region. For example, Shaw traveled and worked in North Kivu to research his dissertation for a recent PhD in African history from the University of Michigan, while also establishing a local research center and several start-up businesses.

In a country rated as one of the most difficult places in the world to start and run a business, North Kivu represents a particular challenge since the province has suffered from Ebola outbreaks and armed banditry. The region’s energy poverty reflects that instability.

The deregulation of the energy sector in 2014, however, created an opportunity for significant private sector intervention. “While the context is complex and operationally challenging, KGE has been able to function for nearly four years,” said Kyle Hamilton, KGE’s director of strategy and development. “Our solar microgrids provide critical energy access to conflict-affected and underserved populations as well as NGOs and health officials working to provide care for Ebola victims in response to the current Ebola outbreak.”

KGE’s business model is based on developing off-grid solar mini-grids, initially in urban areas, to deliver to energy to hundreds of thousands Congolese households. The mini-grids will be equipped with GSM-based smart meters, while diesel energy generators will provide a backup energy source. Customers will be able to pay with mobile money payment systems.

KGE’s upcoming 1.3MW solar-based hybrid mini-grid in the North Kivu city of Goma will service 700 households, businesses and NGO groups. A particular focus is to empower young Congolese entrepreneurs and reach businesses that work with thousands of rural households to spread the benefits of energy to them.

The Energy Access Booster award will help KGE to achieve its goal of installing a total of 25MW solar-based mini-grids by 2020, while simultaneously conducting market and technical feasibility studies for other new urban markets in the DRC. KGE’s long-range plan is to produce a total of 250MW from solar-based mini-grids by 2023 and achieve 1 GW by 2033 to serve 5 million urban customers.

“Through the Energy Access Booster program, KGE will receive the support necessary to build a strong foundation as we seek to scale and make an impact in Congo by providing electricity to businesses and households that need it,” said Shaw. “What’s more, this support will also help us develop the technical capacity necessary to train Congo’s workforce for the emerging renewable energy sector and to address Congo’s current energy deficit and poverty.”