Competition offers $7m for African energy projects
Access Power, an emerging markets power project developer is offering US$7 million in funding to winning renewable energy projects in the third edition of its Access Co-Development Facility.
The competition powered by Access Power, in partnership with Power Africa, will provide selected local power project developers and originators with project development support, technical experience, expertise and funding required to implement their ideas.
Also the US Agency for International Development (USAID) has announced a US$4 million funding initiative aimed at supporting innovative solar companies across sub-Saharan Africa.
The latest ACF competition aims to further build on the success of the previous two years where a total of five projects passed the final round of selection, with three projects successfully executing joint development agreements with Access Power says a release published in Disrupt Africa website.
Shortlisted entries will be evaluated and scored by an independent panel of industry experts comprised of senior representatives from Power Africa, InfraCo Africa, Proparco, the Dutch Development Bank (FMO) and Access Power, with winners announced during a live final evaluation panel on June 7 during the Africa Energy Forum in Copenhagen.
The top three finalists will subsequently enter into direct Joint Development Agreement (JDA) discussions with Access Power. Once these are successfully concluded, Access Power will take an equity stake in those projects and commence independently funding their third-party development costs.
“As a Power Africa partner ACF will draw on a wider communication platform – enabling us to reach a bigger network of innovative and pioneering entrepreneurs across Africa with the opportunity to develop their ambitious ideas into tangible projects,” said Reda El Chaar, executive chairman of Access Power to the publication.
“Last year was another highly successful year for the competition as we received nearly 100 submissions from over 25 countries across the full spectrum of renewable technologies, a 75 percent increase on the previous edition. This is a chance to shine a spotlight on ideas and showcase talent. We are delighted to see the competition develop as word spreads about the possibilities it can bring.”
Disrupt Africa reported in November that USAID made eight investments – as part of the “Scaling Off-Grid Energy Grand Challenge for Development” programme – into companies disrupting household solar power worldwide, with two recipients based in Africa.
A further funding opportunity has now been announced, with US$4 million to be made available to startups developing innovative technology solutions and business models across the household solar value chain in sub-Saharan Africa.
However, USAID will only be making investments based on a fund-matching model. Funding will go to early growth stage companies which can show a 2:1 private investor match; meaning that startups must be able to show a private investor is willing to commit twice the amount – on either an equity or debt basis – being requested from USAID.
The organisation said it expects funding granted to range between US$500,000 and US$1.5 million per company.
To be considered, applicants must be early growth stage companies active in one or more African markets; and should be developing and scaling innovative solutions that will have broad reach across the sub-Saharan household solar market with the potential for high market impact.
Concept papers will be accepted on a rolling basis until April 30. Those interested are encouraged to contact the Scaling Off-Grid Energy team here describing their solution and listing interested investors, prior to submitting a concept paper.
ISAAC ANYAOGU with wire reports