- The government of Sierra Leone plans to implement a results-based financing (RBF) mechanism to develop solar mini-grids.
The RBF model will provide grants to private mini-grid developers and operators based on the number of connections they set up.
The chosen developers will finance, build, own and operate the mini-grids, with grants disbursed upon verification of defined milestones.
Sustainable Energy for All, an organisation hosted by the United Nations Office for Project Services (UNOPS), will implement the project in cooperation with UNOPS to electrify 35,000 households. The European Union will contribute €20 million ($20.6 million).
“The use of RBF for the rollout of solar mini-grids is an important step for Sierra Leone,” said EU Ambassador to Sierra Leone Jacek Jankowski. “As the RBF mechanism is scalable, it has the potential to lead to a palpable acceleration in rural electrification.”
The Sierra Leone Ministry of Energy has identified 703 sites with mini-grid potential across the country through its national online database for electrification. There are currently more than 100 solar mini-grids in operation in Sierra Leone under private sector portfolios.
The European Union is working with the Sierra Leone government to develop access requirements to RBF grant funds, including procedures for the selection of developers and operators.
According to the International Renewable Energy Agency (IRENA), Sierra Leone had deployed 9 MW of solar at the end of 2023. Financing was secured for a 50 MW solar project in December 2023
Author: Patrick Jowett
This article was originally published in pv magazine and is republished with permission.
