The Universal Energy Facility (UEF) is giving grants up to $10 million to 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
Speaking on the development, Anita Otubu, Senior Director of the UEF said, “Accelerating access to reliable, sustainable and affordable electricity to those most in need is the central focus of UEF and its partners. 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.”
In the Democratic Republic of Congo, 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. Also, in Madagascar, 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.
In Sierra Leone, the UEF since 2020 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.