Sustainable Energy for All (SEforALL) is spearheading a groundbreaking initiative to transform energy access in three African nations; Sierra Leone, Madagascar, and the Democratic Republic of the Congo (DRC).

The Universal Energy Facility (UEF), a multi-donor results-based financing facility managed by SEforALL, is set to sign substantial grant agreements totaling $10 million with mini-grid companies in the coming weeks. The agreements aim to bring clean and reliable electricity to communities that have long been deprived of such a crucial resource.

The UEF’s primary focus is to provide financial support to mini-grid companies for the establishment of solar-powered mini-grids in areas where access to clean energy is virtually non-existent.

These communities often rely on highly polluting energy sources, including diesel and petrol generators, charcoal, and firewood. With the infusion of $10 million in additional funding, the UEF is poised to make a significant impact by financing the construction of mini-grids and creating thousands of electricity connections.

The total funding of $10 million will be allocated to 17,628 connections among six companies across the three countries. The direct beneficiaries of these projects are estimated to be around 88,000 individuals residing in 29 different communities.

The profound influence of this initiative goes beyond the provision of electricity, it represents a crucial step towards fostering economic growth, empowering women, reducing carbon emissions, and generating employment opportunities, among other benefits.

The projects are expected to generate an impressive renewable energy capacity of approximately 3.7 megawatts (MW), while simultaneously preventing approximately 1,800 tonnes of CO2 equivalent emissions each year. This substantial reduction in greenhouse gas emissions will significantly contribute to the global fight against climate change.

Anita Otubu, the Senior Director of the UEF, expressed her enthusiasm for this landmark initiative, stating, “Accelerating access to reliable, sustainable, and affordable electricity to those most in need is the central focus of the Universal Energy Facility.

This $10 million grant agreement is a major milestone and the first of many we need to take to transform lives in Africa. Clean energy access can be a life-changing catalyst, fostering economic growth, gender equality, and environmental sustainability.”

The significance of these grant agreements is further highlighted by the pressing energy challenges faced by these nations. In Sierra Leone, the government is striving to raise the national electrification rate from its current 26% to an ambitious 92% by 2030.

The situation is even more dire in rural areas, where access to electricity is only available to 5% of the population. The implementation of electrified mini-grid systems will be instrumental in bridging this energy gap.

Since 2020, the UEF has committed over $2 million in grant agreements for the deployment of mini-grid projects, showing its dedication to transforming energy access in the region. One of the notable agreements is with Energicity (SL) Limited, which is set to receive a $706,000 grant to develop seven mini-grids. These mini-grids will provide electricity to 1,193 connections, benefiting nearly 6,000 people in Sierra Leone.

Moreover, the UEF has made substantial progress in the application process in all three countries, issuing conditional offer letters to developers for the construction of over 20 mini-grid sites. As the requirements are met, further grant agreements are expected to be extended in the near future