- The European Investment Bank and the International Solar Alliance has published a new study outlining solutions to overcome key affordability and investment challenges holding back off-grid solar investment across Africa.
- The aim is to unblock off-grid energy investment to enable a better future for millions.
At present more than 120 million households across Africa lack access to reliable and affordable energy, with 60 million households expected to remain without electricity by 2030 unless urgent action is taken.
The new in-depth overview of recent private sector led deployment of small-scale solar energy systems across sub-Saharan Africa identifies five key challenges that can be addressed to unlock high-impact local energy investment essential for sustainable development and economic growth on the continent.
The study, based on detailed consultations in Uganda, Rwanda and Nigeria and analysis of off-grid markets across the region, provides recommendations for effective intervention to scale up off-grid solar deployment depending on specific local issues.
Sharing best-practice that allows investment and technical barriers holding back off-grid solar is key crucial to scale up off-grid solar, allow vulnerable and remote communities to access clean energy and deliver the sustainable development goal of universal access to reliable and affordable energy.
Commissioned by the European Investment Bank, in partnership with the International Solar Alliance, and compiled by development advisors Dalberg, the new study gathers local technical and financial experience and insight from successful deployment of off-grid solar investment in Africa.
This includes examining how off-grid solar investment has benefits refugee communities in Uganda and enabled cost-effective energy access in Nigerian cities.
Investment challenges including affordability, working capital and exchange rate risks and political and economic stability holding back private sector investment in off-grid solar can be reduced through combining commercial financing and support form development finance partners.
The key recommendations of the study outline different models of intervention to overcome financing, technical and customer challenges to scale up off-grid solar deployment were highlighted ahead of final publication in specialist workshops attended by representatives of AfD, KfW, FMO and the European Commission.
The report published today examines off-grid solar investment across Africa and assesses how investment barriers including affordability, equipment supply, access to working capital, regulatory challenges, insurance and technical expertise influence and hinder deployment.
The analysis uses solutions developed in local case studies to suggest how examples such as aggregated purchase of solar home systems can reduce costs and rapidly enable low-income, urban and rural communities and refugees to access reliable energy through sustainable private sector led off-grid solar projects.
Link to the full report HERE
Author: Bryan Groenendaal