- The US International Development Finance Corporation (DFC) has announced a ‘Call for Applications’ from private companies seeking financing for distributed renewable energy (DRE) related investments in developing countries.
- The agency is pursuing to help developing countries reduce emissions, increase renewable energy usage, protect ecosystems, and enhance resilience.
- Distributed renewables generation is the term used when electricity is generated from renewable energy sources near the point of use instead of centralized generation sources from power plants.
“DFC is committed to combatting the climate crisis, and distributed renewable energy offers an important path forward to mitigate climate change and help bring electricity to hard to reach communities, supporting development and economic growth,” said DFC Chief
Operating Officer David Marchick, who announced this new opportunity in his keynote address at the Investor Voices Day of Power Africa’s Partners Week.
“The Call for Applications will allow us to identify private sector-led projects in need of financing tools to increase access to reliable and affordable electricity in developing countries around the world. We are excited to leverage our partnerships with The Rockefeller Foundation and Shell Foundation to advance this important work.”
DRE investments bring energy to remote and rural locations that currently lack adequate energy access. DRE projects include but are not limited to micro and mini-grids, solar home systems, and distributed power generation. DFC aims to expand electricity access to at least 10 million people by 2025, as included in its inaugural development strategy, the Roadmap for Impact.
“DFC financing is a critical tool in the U.S. Government’s Power Africa toolbox,” said Power Africa Coordinator Mark Carrato, “and we’re excited that our Beyond the Grid team and other partners like the Shell Foundation can help generate potential deal flow from companies that traditionally have relied mostly on grants from donors, but that now are ready for financing. Our hope is to help shape the DRE market and demonstrate its commercial viability.”
DFC will work collaboratively with The Rockefeller Foundation, the Shell Foundation, and the U.S. Agency for International Development’s Power Africa team on DRE projects supported through the Call for Applications.
Opportunities will be evaluated as part of a rigorous evaluation process upon the discretion of the DFC, and applications are due on June 18, 2021.
For questions about the Call for Applications, email energyaccess@dfc.gov
Author: Bryan Groenendaal
