Supporting Private Sector to meet the energy needs of rural communities in Africa
The AECF renewable energy financing is US $145 million with US $62 million dedicated to REACT SSA.
About 510 million people in sub-Saharan Africa (SSA) currently have no access to electricity and will not get grid access in the foreseeable future, resulting in a steady increase in the number of people without electricity until at least 2025.
The slow progress and high cost of conventional solutions to the household energy crisis means that cheaper and more accessible new clean technologies offer a better chance of improved access to energy for rural households in the foreseeable future. Over the last decade, clean energy technologies have become more economical than conventional generation for many applications, and the regulatory environment to facilitate their application has improved. Risk and market failures restrict innovation and prevent the development and use of successful business models and technologies.
The AECF's engagement in the energy sector under REACT SSA is designed to catalyze the private sector to increase supply of cleaner fuels, raise awareness of the dangers from indoor air pollution, demonstrate how new knowledge in renewable energy technologies can be put into practice in ways that benefit the poor especially women, provide evidence on challenges in policy formulation and implementation
What Technologies are we looking at funding?
Renewable technologies such as hydro-power, solar energy, biomass and wind energy
Small, household level solar home systems, comprising of basic lighting, phone charging systems and radios, made available to large numbers of households through pay-as-you-go (PAYGo) systems
Large solar power stand-alone systems for productive use, comprising of phone charging systems, radio etc. and that can be used at small scale rural based business premises to provide the required power.
Larger solar power systems that meet the full range of household needs and are still affordable for low income individuals
Larger centralised renewable power systems (mini-grids/ micro grids)/ utility models, with distribution network that meet the full range of household/ business needs and are affordable for low income individuals
Production and/or distribution of cleaner fuels (e.g. ethanol) and energy efficient cook stoves
Distribution models that support local entrepreneurship and growth of SMEs within a renewable energy product demand and supply chain
Innovative ideas that stimulate “next generation” approaches in renewable energy sector
The REACT SSA competition is open to private sector enterprises with relevant renewable energy businesses in one or more of the seven participating countries.