A new strategy for renewable energy funding in Africa

Stichting Clean Energy and Energy Inclusion for Africa (CEI Africa) invites GMG Developers to apply for outcome-based grants that subsidize the implementation of PUE strategies connected to operating GMGs in the target countries: Kenya, Uganda, DRC, Cameroon, Sierra Leone, Madagascar, Mali and Benin.

Partnerships with PUE providers, distributors, and manufacturers are encouraged. CEI Africa designed a grant facility (the “Smart Outcomes” component) to provide outcomebased grants and technical assistance to green mini grid developers and stand-alone off-grid enterprises implementing productive use of energy. The design was funded by the Austrian Development Agency (ADA), the German Federal Ministry for Economic Cooperation and Development (BMZ) through KfW and the Swiss Development Cooperation (SDC).

Productive use of energy (PUE) facilitates income generating activities and is widely seen as critical for ensuring that improved energy access delivers on its potential to improve livelihoods and boost economic growth in developing economies. Examples of PUE include grain mills, agro-processing machines, refrigeration and water irrigation systems but also small scale appliances used by MSMEs (such as small freezers).

The Smart Outcomes component is aimed at incentivizing the deployment of PUE at scale and is open to all technologies if they are utilizing renewable energy and have been deployed in the market, among other considerations.

The facility will be open to two types of companies: green mini grids (GMG) and stand-alone off-grid enterprises (OGEs) that are deploying PUE. The Outcome Based Financing by CEI Africa provides incentives to reach pre-agreed impacts through the sustainable and productive use of clean off-grid-electricity by client-target groups with a special focus on women.

Disbursement of the grants is partly conditional on reaching certain outcomes such as reduced household/SME expense, increase in incomes of local communities, support for women entrepreneurs and partly on verified equipment delivery/installation.