Distributed energy service companies (DESCOs) deploying off-grid solar solutions in Sub-Saharan Africa have had limited success in raising debt from local financial institutions such as commercial banks. The high collateral requirements, high interest rates, and short tenors offered by local financial institutions are incompatible with the business models of off-grid solar companies, who need to ensure that the pricing of their products remain affordable to a customer base with extremely limited purchasing power.
While some DESCOs have been able to raise financing from other sources such as development finance institutions (DFIs) and international impact investors, these facilities and investments are often denominated in a hard currency such as the U.S. dollar or the Euro, which add a layer of currency risk given that the revenues of off-grid solar companies are in local currency. Intermediaries sponsored and/or funded by DFIs and impact investors such as the Off-Grid Window of the Facility for Energy Inclusion and SunFunder have made available a limited source of local currency financing. However, crowding local financial institutions into the sector is the only long-term solution to ensuring that DESCOs have access to the scale of capital they require.
For electricity access findings, the high-impact countries are: Afghanistan, Angola, Bangladesh, Burkina Faso, Congo (DR), Ethiopia, India, Kenya, Korea (DPR), Madagascar, Malawi, Mozambique, Myanmar, Niger, Nigeria, Philippines, Sudan, Tanzania, Uganda, and Yemen.
For clean cooking access findings, the high-impact countries are: Afghanistan, Bangladesh, China, Congo (DR), Ethiopia, India, Indonesia, Kenya, Korea (DPR), Madagascar, Mozambique, Myanmar, Nepal, Nigeria, Pakistan, Philippines, Sudan, Tanzania, Uganda, and Vietnam.
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The United States Agency for International Development (USAID) and the ResilientAfrica Network (RAN) have launched a call for proposals under the Household Solar Workforce Development Challenge, as part of the Scaling Off-Grid Energy Grand Challenge for Development (SOGE). SOGE seeks to accelerate growth in the off-grid solar home system market to provide millions of households and businesses across sub-Saharan Africa with access to modern, clean, and affordable electricity.
However, talent acquisition and retention for off-grid solar home system companies remains an ongoing industry challenge, limiting enterprise growth and the sector’s capacity to scale and mature as an industry.
The Household Solar Workforce Development Challenge will award up to $350,000 in grant funding to support scalable, innovative, third-party training solutions to the off-grid solar home system sector's workforce needs in sub-Saharan Africa. USAID, as part of its commitment to the Scaling Off-Grid Energy (SOGE) Grand Challenge for Development, is supporting the Household Solar Workforce Development Challenge run by the ResilientAfrica Network (RAN).
Source: Competitions For development
You may also directly download the detail requirements and criteria here.
Power Africa Off-grid Project invites grant applications for innovative solutions for co-delivery of solar household systems and liquefied petroleum gas in sub-Saharan Africa. The grant is in the range of USD100, 000.00 to USD250, 000.00
Overview of funding opportunity
The Power Africa Off-grid Project (PAOP), a United States Agency for International Development (USAID)-contracted project implemented by RTI International, seeks applications to fund one or multiple awards to provide incentives, in the form of grants, to qualified organizations/companies to catalyze rapid growth of off-grid energy access solutions in PAOP focus countries.
The RFA provides prospective applicants with a fair opportunity to develop and submit competitive applications to PAOP for potential funding. The grants will be awarded and implemented in accordance with USAID and US Government regulations, and PAOP grant management policies and procedures. Please see the detailed description of the application requirements in “Section III Application Merit Review Criteria” below.
Grant activities may be conducted in any of the PAOP focus countries: Cameroon, DRC, Cote d'Ivoire, Ethiopia, Ghana, Kenya, Liberia, Niger, Rwanda, Senegal, Tanzania, and Uganda. PAOP will partner directly with organizations based in these countries.
Related Opportunity: Household Solar Workforce Development Challenge