Financing access to energy

Facts, challenges & objective

Access to energy and connected productive technologies reduces income inequality and promotes economic growth. It poses a challenge in Sub-Saharan Africa.

80% of all agricultural enterprises in Sub-Saharan Africa are smallholder farms. 175 million people work in this type of agriculture. More than 350 million people on the continent do not have access to an account at a bank or other financial institutions. Interest rates are too high for smallholder farmers. They cannot pay to use equipment like solar water pumps.

Connecting dispersed users to a national grid is costly. Decentralized renewable energy solutions are beneficial, but there are issues with large-scale investment, including inconsistent expectations on realistic returns on investment, high transaction costs for finance institutions or development organisations, isolated views by national governments and international organisations, and limited understanding of decentralized renewable energy.

Green People’s Energy for Africa offers measures for financial and knowledge support of end-users and private companies to help improve adoption of decentralized renewable energy systems and productive use of energy in off-grid rural communities.

Decentralized renewable energy projects and productive technologies need support to build markets. Project developers, investors and political decision-makers work together to bring projects to financing. Further, results-based financing (RBF) also disburses funds based on achieving results.

Support for end-users

  • Establishing guarantee funds and offer incentive payments for microfinance service providers (MFIs)
  • Building links between MFIs, solar companies and organized savings and loans associations or cooperatives to access funds
  • Putting users in touch with solar companies
  • Helping users purchase ‘productive use of energy’ technologies

Supporting private companies

  • Marketing ‘productive use of energy’ technologies in rural areas by collaborating with local businesses
  • Results-based payment of incentives based on outcomes to build local business and self-reliance
  • Professionalizing local solar companies based on strategies for functionality of the sector
  • Training staff to operate and maintain solar systems
  • Promote proven PUE technologies in local markets

Articles on financing

ProfileSDG 7

Providing impetus for local value creation and more solar electricity

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Promoting new business models to increase value creation and enable sustainable electricity supply.
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ProfileSDG 7

Refugee shelters need sustainable solar solutions 

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Clean electricity for refugee families in Uganda Through approximately 330 savings communities in refugee shelters and host communities, ZOA aims to promote the market for sustainable solar solutions.
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StorySDG 7

Results based financing is helping farmers increase their harvests through solar pumps

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Nearly 40 farmers have been able to purchase solar pumps through Green People’s Energy’s results-based financing approach, reporting crop increases of more than 100% in some cases. Not surprisingly, 50 additional farmers have now signed up as potential customers for solar pumps. And, with the help of Green People’s …
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ProfileSDG 3

Healthcare posts: producing electricity and chlorine with solar panels 

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Solar panels provide power for medical equipment, computers and lights – in a pilot project, three health posts will now use the solar power also to produce chlorine at low cost.
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ProfileSDG 13

Capturing CO2 savings and promoting investment in high-quality PV systems.  

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A calculation model will help investors to calculate the contribution of their systems to climate protection and thereby to generate emission certificates.
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ProfileSDG 17

Public-private partnerships and CO2 financing strengthen electrification of municipalities 

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Sustainable financing mechanisms provide Beninese communities with additional access to clean energy.
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StorySDG 7

A water pump that inspires a community to do more

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In 2021, at the Langdi Paradise Farms in Upper West Ghana, a solar mechanized water pump was installed through the support of the Green People’s Energy project of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). Thanks to the new irrigation, the farmers can now grow vegetables in the dry season. But fo…
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StorySDG 7

Results-based financing lets farmers in Senegal buy solar-powered water pumps, helping to increase harvests

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After almost 40 farmers bought solar pumps through the results-based financing approach used by Germany’s initiative for Green People’s Energy, they reported almost 100% increases in their harvests. No wonder another 50 farmers have now registered as potential customers for solar pumps.
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NewsSDG 17

Green People’s Energy working with Odyssey tech on results-based financing in Côte d’Ivoire

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Thanks to Odyssey’s digital technologies for distributed energy financing, GBE can now manage its data-driven and streamlined results-based funding schemes more effectively.
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FeatureSDG 17

Intensive consulting towards access to finance for renewable energy projects proves effective

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Two companies were able to successfully submit their project documents to an international financier.
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NewsSDG 7

Call for a Results-Based Financing Programme in Côte d’Ivoire

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GIZ will launch a results-based financing programme that provides financial incentives for the successful sale and installation of productive solar systems.
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FeatureSDG 7

Signing of the financing agreement for the Energy Self-Sufficient Villages Initiative

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With a total capacity of 865 kWh, the two mini-grids will connect about 8000 people and eight social institutions such as schools, health centres and others to the two decentralised electricity grids and provide access to clean and affordable energy.
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FeatureSDG 7

Only a good business plan attracts investors

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GBE Senegal has identified twenty project developers that are now being supported by experts.
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FeatureSDG 7

Linking up renewable energies with finance – Business Development Services powered by GBE Ethiopia

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Currently, the companies receive individual coaching on their specific business cases and financing proposals.
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FeatureSDG 7

Coaching improves access to capital for solar companies in Benin

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With its advisory services, GBE Benin aims to facilitate access to capital and investors for solar companies.
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NewsSDG 7

Call for Project Proposals in the Decentralized Renewable Energy Sector for Facilitating Access to Finance

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All projects related to decentralised renewable energy and with an impact on rural economic development are eligible to apply.
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StorySDG 7

A new financial approach stimulates the Senegalese rural solar market

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15 farms are now irrigating their fields with solar pumps, and 5 women directed shops were able to purchase solar-powered refrigerators in June.
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FeatureSDG 7

Solid financing of solar energy systems for commercial purposes

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Results-Based financing (RBF) mechanism helped spreading the use of solar-powered agricultural machinery in Benin.
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NewsSDG 17

Call for Interest by GBE Côte d’Ivoire – social infrastructures

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A special emphasis is placed on the use of solar technologies by social infrastructures in decentralised areas.
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NewsSDG 7

Call for Interest by GBE Côte d’Ivoire – results-based financing program

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Companies selling and installing solar refrigerators/freezers and solar water pumps for irrigation are eligible for incentives.
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FeatureSDG 7

Discussing the financing of renewable energy projects for productive use in Senegal

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GBE Senegal organized a three-day sensitization workshop on the possibilities to improve and expand the financing offers for renewable energy projects.
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NewsSDG 7

Toolkit presented at international expert forum for rural electrification

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At the Alliance for Rural Electrification’s (ARE) 6th Energy Access Investor Forum, GBE Zambia took part in the presentation of a new toolkit for renewable energy associations and answered numerous questions around association formation.
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NewsSDG 7

Universal Energy Facility opens pre-qualification for mini-grid projects in Benin

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The Universal Energy Facility, a results-based financing facility, is inviting pre-qualification submissions from companies for the development of mini-grid projects in Benin.
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NewsSDG 7

Call for Manifestation of Interest: Support in Access to Finance for Productive Use Renewable Energy Projects

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GBE offers access to finance consulting for local productive use renewable energy project developers. The Call for Manifestation of Interest is open until Feb. 28, 2021.
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NewsSDG 7

Call for Project Proposals in the Decentralized Renewable Energy Sector for Facilitating Access to Finances

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The GBE Benin project facilitates access to finance for local developers of decentralised renewable energy projects, through technical assistance and linkages with business development service providers and financial institutions.
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ProfileSDG 7

Microcredits Facilitate the Purchase of Solar Systems

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With the help of adapted microcredits, small-scale farmers take energy supply into their own hands.
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NewsSDG 7

First Productive Use of Energy idea Competition for the Private Sector

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In response to the great relevance of off-grid energy for productive use (PUE), Green People’s Energy Uganda, launched the first PuE Idea Competition for the Private Sector in late May. Solar distributors, project developers and operators of PuE technologies were invited to apply. Successful applicants are eligible…
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