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If renewable energy must become mainstream in Nigeria, local developers must have access to innovative sources of finance. Information about these sources is therefore critical. Courtesy of Africa-EU RECP, we present over 20 funding sources, all in one place – ranging from equity, to debt and several forms of mixed-instrument financing – with information on offering size, investment type, funding requirements, and contact details for developers willing to pursue these funds.

Actis Infrastructure

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $10-50 M

Type of Investment: Equity

Investors of Fund: Over 200 Limited Partners invested in Actis funds.

Primary Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: Standard project documentation.

· Target Impact: Committed ESG investors, working with IFC principles.

· Due Diligence Requirements: Standard required project documentation.

 

Acumen Fund 

RE Technology of Interest: Biomass; Small hydro; Solar; Wind

Size of Investments: $0.25M - $3M

Type of Investment: Debt or equity

Investors of Fund: Donors and international development agencies

Primary Contact: Duncan Onyango, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Requirements for Financing:

· Project Requirements: Renewable energy companies applying for capital from Acumen must comply with the following criteria: have significant operation in East Africa or West Africa, be an early-mid stage company that is in the process of scaling, have a product or deliver a service that addresses a critical need for the poor, have a clear business model that demonstrates the potential for financial sustainability, able to demonstrate a clear path to scale, and have a strong and experienced management team with the skills and the will to execute the business plan.

· Co-funding Requirements: Own contribution.

· Target Impact: Acumen looks at three main pillars in its impact framework: 1. Focus on the poor – ventures that deliver critical products and services that enable poor customers to transform their lives 2. Breadth – ventures with a wide reach and game-changing innovations, that have the potential to scale to millions of low-income customers 3. Depth – true effect on customers’ quality of life over time. Essentially these pillars are assessed by reviewing the ability of the venture to increase jobs, increase the income and the livelihood of the households of the poor, and the number of people it impacts.

· Due Diligence Requirements: Business plan, financial plan, marketing plan. The company must be legally registered and have audited financial statements. All legal requirements and documents must be in place.

· Detailed Description of Funding Process Procedure: Three stages of due diligence. First initial assessment to determine general fit will generally take a few days. The second stage includes an examination of the business plan (this will include conversations with employees, clients, and other stakeholders), assessment of leadership, potential for impact, sustainability, capacity to scale, leadership in place to achieve the scale. Third stage is the legal due diligence, registration and permits. The entire process is expected to take 4-6 months.

 

African Renewable Energy Fund (AREF) 

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Stranded Gas; Wind

Size of Investments: $10-30M

Type of Investment: Equity

Investors of Fund: African Development Bank, CDC, GEEREF, EIB, GEF, Sustainable Energy Fund for Africa (SEFA), West African Development Bank (BOAD), Ecowas Bank for Investment and Development (EBID), FMO, Calvert Investments, CDC Group, BIO, OeEB - the Development Bank of Au

Primary Contact: Luka Buljan, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Requirements for Financing:

· Applicant Requirements: 5-50 MW

· Target Impact: Increasing renewable energy generation in Africa.

· Due Diligence Requirements: Standard project documentation.

· Detailed Description of Funding Process Procedure: Origination by partnership with local sponsor/developer after initial and before detailed development stage.

 

Ariya Capital Sub-Saharan Africa Cleantech Fund 

RE Technology of Interest: Biomass; Small hydro; Solar; Wind

Size of Investments: $3-10M

Type of Investment: Equity

Investors of Fund: Ariya Capital

Primary Contact: Sophia Gordon, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Applicant Requirements: Innovative, high growth businesses that have the potential to become significant regional players. With a strong, financially sound business plan, strong management committed to sustainable business practices that have measurable positive social and environmental impact.

· Co-funding Requirements: The fund will provide no more than 10% of the fund into a single company; lower figures could be envisaged.

· Target Impact: Provide foreign capital for sustainable companies addressing both market and social needs such as climate change and the alleviation of poverty. Outline ESG issues in all investment committee approvals and portfolio company reviews.

· Due Diligence Requirements: Undertake a comprehensive on the ground due diligence that incorporates sustainability alongside financial indicators.

· Detailed Description of Funding Process Procedure: Source its investments through its presence on-the-ground, strong advisory network and institutional and business relationships.

 

Danish Climate Investment Fund (KIF)

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: €2-50M

Type of Investment: Equity

Investors of Fund: Denmark

Primary Contact: Jacob Klingemann, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Requirements for Financing:

· Project Requirements: Renewable energy generation in all technologies. There must be a Danish company involved, either in the developer or the project.

· Co-funding Requirements: Prefer a consortium of share-holders so there will be a shared due diligence, with an emphasis on local investor industrial co-investor or local financial institution.

· Target Impact: KIF measures impact based IFC guidelines.

· Due Diligence Requirements: The due diligence will review the developer’s reputation, evaluate risk, track record, country assessment, including PPAs and legal enforcement, review of off-taker, management skills and place a large emphasis on the ability to execute based on past performance. Early stage development company can approach KIF without documentation, however they will need more hands on approach and JV, KIF may suggest that the development company work together with Nordic Power Partners (PV and wind), to increase track record. Late stages need to have PPA and licensing intact.

· Detailed Description of Funding Process Procedure: The due diligence process follows 2 stages: Initial screening focused on partner country and general merit of the project. First stage is about a month and ends in approval in board meeting. The second stage is proving due diligence of all the information, including a site visit. The full process can take 6-12 months until disbursement.

 

DEG – Direct Investments

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: €10-30M

Type of Investment: Equity & Debt

Investors of Fund: Federal Government of Germany

Primary Contact: Martin Mainz, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: DEG supports sustainable and profitable greenfield (new construction) or brownfield (expansion and refurbishment of existing plant) renewable energy projects. Project developers must have proven track record.

· Co-funding Requirements: Developers are expected to invest their own equity in the project.

· Target Impact: We follow the IFC Performance Standards and the stipulations of the Environmental, Health and Safety Sector Guidelines of the World Bank Group.

· Due Diligence Requirements: Proper project documentation including business plan, signed PPA, construction and EPC, etc.

· Detailed Description of Funding Process Procedure: The degree of due-diligence depends on the project, but usually it takes six months to complete from the idea of financing to the signing of contracts, especially in infrastructure projects.

 

DEG Feasibility Study Financing

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: Up to €200,000

Type of Investment: Grant

Investors of Fund: German Ministry for Cooperation and Development (BMZ)

Primary Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: Requirements for receiving the grant include: The project being assessed must be financially viable and fit the development requirements of DEG. The feasibility study must support a future investment in the project that is suitable for DEG. The company must have the capacity to follow up on the study, if it is positive, and continue to develop the project. The feasibility study would not be carried out if public funding wasn’t available.

· Co-funding Requirements: DEG provides a maximum of 50% of the costs for each feasibility study. The proposing company bears a minimum of 50% of the costs for the study and is responsible for its orderly implementation.

· Target Impact: DEG follows the IFC Performance Standards and the stipulations of the Environmental, Health and Safety Sector Guidelines of the World Bank Group. Projects should have a developmental impact that follows DEG priorities, for example: securing and creation of jobs, goods for basic needs, climatic and environment protection, introduction and elevation of standards, broad and structural effects, sustainability, and others. The full DEG environmental and social requirements can be found here.

· Due Diligence Requirements: Proposals must include the following documentation: company annual reports and financial statements of the last three years, structure of the study, draft of the consulting agreement (if an external consultant will be hired), CVs and references of the experts to be designated, cost plan, and timeline. Applicants must submit all the information through the online form, (Application).

· Detailed Description of Funding Process Procedure: The application should include: Financial description of the proposed investment which the study supports, details on the development impact of the project, the costs and operational plan for the study, financial statements of the company. Once the application form is completed along with all the required documentation, DEG will typically review and reply within 6 weeks.

DEG Upscaling 

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: Up to €500,000

Type of Investment: Convertible Grant

Investors of Fund: German Ministry for Cooperation and Development (BMZ)

Primary Contact: Dr. Tobias Bidlingmaier, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: The SME must have an innovative and scalable business approach with a high developmental impact. The company must also be operational and a pilot phase has already been completed including proof of concept with regards to technology and business model at local level. The planned investment generates positive returns. The company shows high growth potential owing to the size of the market and the target group. The company has the management capacity, human resources and know-how to substantially scale their activities.

· Co-funding Requirements: DEG will commit a maximum of 50% of the total investment volume. The entrepreneur must contribute a substantial share of equity (at least 25%).

· Target Impact: DEG follows the IFC Performance Standards and the stipulations of the Environmental, Health and Safety Sector Guidelines of the World Bank Group. Projects should have a developmental impact that follows DEG prioirities, for example: securing/creation of jobs, goods for basic needs, climatic/environment protection, introduction/elevation of standards, broad and structural effects, sustainability, and others. The full DEG environmental and social requirements can be found here.

· Due Diligence Requirements: A comprehensive business plan and financial projections which will demonstrate the company’s capacity for scale, profitability, and impact. A full application form must be submitted (Application).

· Detailed Description of Funding Process Procedure: After the application form and supporting documents are submitted, DEG performs an initial screening to assess the general fit of the investment and decide if to begin a due diligence process. This stage should take approximately 6 weeks. The due diligence comprises a rigorous appraisal of the company and its potential. The full information is submitted to DEG credit committee for decision. The full process should take 3-6 months, depending on the quality of the information the company submits.

 

DfID Impact Fund

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $5-15M

Type of Investment: Equity

Investors of Fund: UK Government

Primary Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: By helping existing impact investors to secure demonstrable social impact with their money and encouraging greater commitments to impact investment, more enterprises will be created or strengthened with more poor people having access to jobs, incomes and affordable goods and services suited to their needs.

· Additional Project Characteristics: The fund will mainly invest in small and medium size enterprises active in the generation and/or distribution of electricity in the region. The aim of the fund is to provide improved, reliable access to energy for one million low-income households by 2020. It will focus specifically on off-grid rural electrification, and will start with companies active in East Africa before expanding to other African countries.

DI Frontier Investment 

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind (including energy efficiency projects in any of these areas)

Size of Investments: $3-10 M

Type of Investment: Equity, Mezzanine capital (e.g. convertible debt or preferred shares), and short term debt financing

Investors of Fund: CDC, Pension Denmark, PFA Pension, Tryg Insurance, GEEREF, Danish Investment Fund for Developing Countries, Seed Capital Assistance Facility (SCAF) funded by AfDB and UNEP

Primary Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Applicant Requirements: 5-100 MW, Greenfield medium scale projects

· Target Impact: Renewable Energy projects that contribute to reducing green house gas emissions

· Due Diligence Requirements: Standard project documentations.

· Detailed Description of Funding Process Procedure: The Fund is characterised by a novel investment strategy and approach which sets it apart from the way most funds work. The main distinguishing feature is an integrated approach to project development and investment.

Emerging Africa Infrastructure Fund (EAIF) 

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $10-50M

Type of Investment: Debt

Investors of Fund: Governments (UK, NL, Swiss), KfW, FMO, SBSA, Standard Charter, PIDG (Equity investor)

Primary Contact: Anthony Marsh, This email address is being protected from spambots. You need JavaScript enabled to view it.; Roland Janssens, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Co-funding Requirements: Project developer should be invested, as well as European DFIs and local commercial banks, such as Standard Charter.

· Target Impact:  Based on IFC ESG principles. Also, EAIF aims to support projects that: promote economic growth and reduce poverty, benefit broad-based population groups, address issues, of equality and participation, promote social, economic and cultural rights.

· Due Diligence Requirements: All proper project documentation, including: a 5-year business plan, project design, EPC, PPA in place, and own investment from the project developers.

Detailed Description of Funding Process Procedure: Flexible investment approval process, comprising three stages: Initial review and submission by FMFM to EAIF’s New Business Committee. Due diligence and negotiation of a term sheet by FMFM with the client, followed by submission to EAIF’s Credit Committee and Board. Execution of documentation.

Engie: Rassembleurs d’Energies Solidarity Investment Fund

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: €0.1-1 M

Type of Investment: Equity or quasi-equity investment

Investors of Fund: The ENGIE Group

Primary Contact: rassembleursdenergies.gdfsuez.com 

Requirements for Financing:

· Project Requirements: 5 investment criteria set by GDF SUEZ Rassembleurs d’Energies S.A.S:
The relevance of the solution (product or service quality, distribution network structure and maintenance, reproducibility of the financial model, quality of organizational and management structure, market conditions, etc), Social performance, Environmental performance, Project financial value and maturity, Synergies with the ENGIE Group (Involvement of Business Units and entities at local level, experimentation with new business models, etc.)

· Co-funding Requirements: N/A

· Target Impact: Social performance: number of beneficiaries, local job creation, variation in available income, reduction of health risks, improvement of education, access to modern information and communication technologies, greater community self-sufficiency, enhancement of the role of women in society, etc. Environmental performance : reduction in CO2 emissions, combating deforestation, substitution of fossil fuels, the presence of a recycling structure, protection of biodiversity, improvements in home energy performance, etc.

· Due Diligence Requirements: As a patient investor, Engies particularly value social and environmental impacts. Nevertheless investment choice is based on evidence of the following factors: Scope of the project (access to energy, clean energy solutions, energy efficiency), Company’s social Mission, Economic maturity, Measure of social and environmental Impacts, Quality of the management team (skills, experience, in the field approach), Amount of the requested investment and share of financial subsidies, Geographical Zone and Coherence with the existing Rassembleurs d’Energies’ portfolio of activities.

· Detailed Description of Funding Process Procedure: Engie leverages the Group expertise to assess investment projects and provide help and support to entrepreneurs throughout the investment period. The selection process has the following steps:

The entrepreneur or developer submits their online selection by the teams of Engie​ Rassembleurs d’Energies.

Investment Committee which is held 4 times a year gives the investment agreement on selected projects.

Study and closing of investments are led by the teams of Engie​ Rassembleurs d’Energies.

Technical support is provided by Engie​ Rassembleurs d’Energies and other Engie’s Business Units during the set up and the follow-up of the investment project throughout the term of the Investment.

FMO Infrastructure Development Fund/ Direct Investment

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: €5-50M

Type of Investment: Debt and Equity

Investors of Fund: Dutch Ministry of Development Cooperation

Primary Contact: Rob in ‘t Zand, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: To be eligible, a project must meet FMO’s financial and environmenal social criteria.

· Co-funding Requirements: FMO will only fund up to 25% of the equity required or 50% of debt. As such developers should bring co-investors and provide some portion of the equity. Local banks are preferred as partners.

· Target Impact: Aside from financial-economic performance, projects are carefully scrutinized in areas such as corporate governance, environmental impact and social policies and practices to ensure the sustainability of the investment (ESG).

· Due Diligence Requirements: To assess eligibility, FMO reviews investment plans, market analyses, due diligence studies, expected returns and the commitment level of management and co-financiers. To complete an investment, FMO requires proper project documentation including business plan, signed PPA, signed construction and EPC agreements, and other legal project documentation and EIA reports.

Detailed Description of Funding Process Procedure: There are two main steps in the due diligence process. First, the asset manager conducts a preliminary screening based on the basic project information (business plan, financial model, technical specification and so on) to assess general interest of FMO. This information is presented to the investment committee which decides if a due diligence process should be conducted. Once approved, the second stages includes a full due diligence including site visits, legal and technical due diligence, financial analysis and the creation of a term sheet.  It usually takes six months to complete from the idea of financing to the signing of contracts.

GroFin SGB Fund

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $0.1-1.5M

Type of Investment: Debt

Investors of Fund: Shell Foundation, Federal Republic of Germany (KfW), The Norwegian Investment Fund for Developing Countries, Norfund, and the Dutch Good Growth Fund (DGGF), GroFin Risk Capital Facility, and GroFin MENA.

Primary Contact: Guido Boisin, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: RE Companies applying for capital from Acumen most comply with the following criteria: Have significant operation in East Africa or West Africa, an early-mid stage company that is in the process of scaling, have a product or deliver a service that addresses a critical need for the poor, have a clear business model that demonstrates the potential for financial sustainability, able to demonstrate a clear path to scale, and have a strong and experienced management team with the skills and will to execute the business plan.

· Co-funding Requirements: Own contribution.

· Target Impact: The fund aims to support over 9,800 under-served entrepreneurs and help create 47,000 sustainable jobs across Africa over the next 10 years. All investees must have an impact story (includes renewable energy). GroFin tracks low and semi skilled employment (inclusive business), tracks and measures BOP customers and suppliers, women owned businesses and female employment.

· Due Diligence Requirements: Collateral and entrepreneur contribution. Business plans, financial statements, legal documentation, compliance checklist based on the sector.

· Detailed Description of Funding Process Procedure: Stage 1: Pre-screening review based on business plan and financial statements, to assess the risk in the business. The review is sent to investment committee for initial approval. This stage takes one month on average. Screening phase: legal documentation, collateral, compliance checklist based on the sector. In this stage, GroFin conducts detailed financial planning, cashflow projections, and business planning together with the entrepreneurs. The final term sheet must be approved by the finance committee. This stage takes up to two months. Implementation: most of the money is disbursed in the first 3 months. Afterwards – monthly business support conversation, and quarterly review of clients.

GuarantCo 

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $10-40M

Type of Investment: Guarantee (GuarantCo can cover debt and subordinated or mezzanine financing but not equity).

Investors of Fund: Governments (UK, NL, Swiss) KfW, FMO, SBSA, Standard Charter

Primary Contact: Chris Vermont, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Requirements for Financing:

· Project Requirements: GuarantCo will support the construction of new facilities or the expansion or refurbishment of existing facilities. In addition, GuarantCo can support the refinancing of existing facilities where cross border debt is replaced by local financing.

· Co-funding Requirements: Local financial institutions should be part of the transaction.

· Target Impact: GuarantCo follows IFC ESG principles. GuarantCo aims to support the development of capital markets while supporting infrastructure projects that promote economic growth and reduce poverty, benefit broad-based population groups, address issues, of equality and participation, promote social, economic and cultural rights.

· Due Diligence Requirements: A 5-year business plan or similar document should be sent as a first stage of due diligence. Developers should provide all proper project documentation.

Detailed Description of Funding Process Procedure: GuarantCo has a flexible investment approval process, comprising three stages, namely, initial review and submission by FMFM to New Business Committee; due diligence and negotiation of a term sheet by FMFM with the client; and followed by submission to Credit Committee and Board.

Impact Assets Emerging Markets Climate Fund

RE Technology of Interest: Biomass; Small hydro; Solar; Wind

Size of Investments: $0.5-5 M

Type of Investment: Equity or Debt

Investors of Fund: Calvert Foundation and Private Investors

Primary Contact: Christopher Aidun; This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: The venture must have an innovative, profitable, and scalable approach to increased access to energy, or renewable energy generation. The company must also be operational and a pilot phase has already been completed including proof of concept with regards to technology and business model at local level. The company has the management capacity, human resources and know-how to substantially scale their activities.

· Co-funding Requirements: Entrepreneur co-investment.

· Target Impact: Increased access to energy or reduce CO2 emissions.

· Due Diligence Requirements: A comprehensive business plan and financial projections that demonstrate the venture’s ability for profitability and impact.

· Detailed Description of Funding Process Procedure: Pre-screening review based on business plan and financial statements, to assess the risk in the business. The review is sent to investment committee for initial approval. Screening phase: legal documentation, collateral, compliance checklist based on the sector. The final term sheet must be approved by the investment committee. Both stage takes up to 4 months.

InfraCo Africa – Sub Sahara Infrastructure Fund

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $1-3 M

Type of Investment: Early stage equity, pre-financial close

Investors of Fund: Private Infrastructure Development Group (PIDG), European Government

Primary Contact: Alex Katon, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: InfraCo looks for projects with high potential but low professional project development expertise. The company acts as principal, to the point where projects can be successfully financed and sold to private investors. Eligible companies include: start-ups or greenfield developments; Partly developed/abandoned projects and currently operating companies; Privatised or to be privatised projects/companies and Majority state owned projects where the private sector is to participate in a risk sharing capacity.

· Co-funding Requirements: Owners Equity expected.

· Target Impact: As a part of PIDG, the results monitoring system reports the expected development impact of InfraCo Africa-supported projects, inclduing the environmental, social, and governeance impact of the project, according to the World Bank guidlines. Specifically, PIDG also measures people, women and below the poverty line population expected to benefit from new/better infrastructure , Job creation, both temporary (construction) and permanent (operations) new Jobs.

· Due Diligence Requirements: Strong business plan and a technical and environmental assessment.

· Detailed Description of Funding Process Procedure: The business approval processes consist of the following key stages:

Identification of new business opportunities and presentation of a long-list of opportunities to the Board (annually or more often, as appropriate).

Annual presentation of a short-list of priority opportunities to the Board and approval by  it (including two high developmental value Opportunities) and circulation to the PIDG.

Approval by the Board of the work plan and budget for development of opportunities on the short-list.

Approval by the Board of a proposal for a sale of InfraCo’s interest in a project.

Approval by the Board of the final terms of a Sale Transaction.

Inspired Evolution Investment – Evolution One Fund

RE Technology of Interest: Biomass; Small hydro; Solar; Wind

Size of Investments: $10-20 M

Type of Investment: Equity and Quasi Equity

Investors of Fund: Cyane Holdings Ltd, Quantum Pssower, GEEREF, IFC, Finnfund, SIFEM, NORFUND, AfDB, IDC, SCAF

Primary Contact: Christopher Clarke, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Requirements for Financing:

· Project Requirements: Provide capital for fully developed projects. Will also support early stage and support the business model development (the fund will help secure seed capital), as long as the developers are professional, are personally invested, and well prepared.

· Co-funding Requirements: Typically, large commercial banks in South Africa and Development Banks will provide the debt portion.

· Target Impact: Following IFC ESG requirements. The development of progressive policies and stricter legislation, the removal of remaining regulatory barriers combined with government targets and directives, and the introduction of financial and economic incentives, has catalysed and enabled the development and use of clean technologies.

· Due Diligence Requirements: Developers are professional, personally invested, and well prepared with required documentation.

Detailed Description of Funding Process Procedure: At best 4-6 weeks. But if the project is not prepared properly, could take up to a year, as the Fund supports the project development.

NEFCO Carbon Fund (NeCF)

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $4-5 M

Type of Investment: Equity or Debt

Investors of Fund: DONG Energy (Dk), Danish Energy Agency, EPV Energy (Fi), the Finnish government, Kymppivoima (Fi), Vapo (Fi), Industrialisation Fund for Developing Countries (IFU), the Norwegian government, GDF Suez, Eesti Energia and NEFCO itself.

Primary Contact: Maija Saijonmaa, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: The main criteria for NEFCO’s participation in projects are: The project is located in one of NEFCO’s countries of operation; the project has a relevant environmental effect; the project is based on long-term cooperation through investments in enterprises, primarly through the formation of joint venture companies or corporate aquisitions; the project has a Nordic company or institution as business partner; the project is economically, financially, institutionally and technically viable.

· Co-funding Requirements: N/A

· Target Impact: Environmental target: CO2 Emission reduction.

· Due Diligence Requirements: The first stage of application is contacting NEFCO by telephone or through the website to ensure the project is eligible for funding. after initial approval, the following information should be submitted: project details: location, background, purpose of the project, the expected environmental benefits and/or improvements resulting from the project, approximate investment costs and financing plan (profitability and payback plans), details of investors and track record, year of establishment, information about planned or possible Nordic participation in or related to the project.

· Detailed Description of Funding Process Procedure:

First stage: Inquiry of interest – The project sponsor presents the project idea and inquires about NEFCO’s interest in financing their project. NEFCO’s environmental specialists give a first opinion of the project’s expected environmental benefit and/or threats. NEFCO normally requests the project sponsor to provide additional key information of the project in the form of a prefeasibility study, including preliminary calculations on financial feasibility, and a summary on environmental improvement.

Second stage: Indication of interest – A summary document is prepared by the investment manager and presented to the board of directors. The board gives its approval to continue preparation of the project. The study should define and analyze environmental improvement, positive and negative environmental impacts, markets, production, technology, organization, financing, profitability, etc.

Third stage: Board approval and negotiation – The project is reviewed by the investment committee and then presented for the board approval. NEFCO negotiates with the project sponsor to establish the terms and conditions of NEFCO’s participation in the project including the incorporation of environmental covenants into the agreements.

Following stages: Signing of agreements, NEFCO monitors Commercial and environmental performance of the project, exits, environmental post-evaluation and lessons learned.

Proparco FISEA: Invest and Support Fund for Businesses in Africa

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: €1-10M

Type of Investment: Equity

Investors of Fund: French Development Bank (AFD)

Primary Contact: Christian de Gromard, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: The activity financed must be mainly located in Sub-Saharan Africa, the recipient entity must be managed by a skilled and experienced team. The financed project must be sustainable. The project must have a convincing business plan and be profitable in the medium term. The recipient entity must comply with international environmental, social and anti-money laundering standards. FISEA’s financial exit is conceivable in the long term.

· Target Impact: Proparco’s objective is in line with AFD’s strategic orientations and the priorities of the French cooperation policy: To promote the emergence of a dynamic, innovative and responsible private sector in developing and emerging countries, which contributes to building sustainable economic growth, job creation, the provision of essential goods and services and, more generally, to poverty reduction and the fight against climate change. Proparco excludes certain production sectors and activities (IFC exclusion list). Proparco assesses the impacts that the activity or project has on maintaining and creating employment, gender issues, environmental practices, social practices (employment conditions) and governance practices, improvement of access to essential goods and services for disadvantaged populations, the generation of public revenue and the transfer of technology, know-how, and other issues.

· Due Diligence Requirements: Proparco supports the development of renewable energy companies and financial institutions – both local actors and French companies. Additionality: Proparco’s operations are complementary to the existing range of financial products. It focuses on sectors where it has the highest added value, particularly non-financial assistance, i.e. advice and support on the E&S and governance aspects, role in project structuring, etc. Knock-on effect: Proparco’s financing aims to demonstrate the economic  financial viability of private sector actors in Africa that were deemed unattractive by other investors and also to attract new financing for its clients’ projects. Impacts on development: The contribution that the companies it finances make to local development is central to Proparco.

· Detailed Description of Funding Process Procedure: Client Reliability: All financing decisions are based on an in-depth analysis of the various risk factors (financial, legal and technical) related to its client and its project: Reliability of accounts, quality of in-house governance, etc. Proparco also assesses the capacity of the companies it finances to withstand and recover from potential shocks (resilience), which is essential to ensuring that its investments are relevant and viable. The application must be submitted to a Proparco or AFD local office or to Proparco’s headquarters.  The project is put before the Identification Committee of Proparco.  Once the Committee has granted approval, the person in charge of the appraisal analyzes the application with the project promoters to ensure it complies with various criteria (financial, technical, legal, environmental and social, anti-money laundering), then puts the project before a Project Committee. The allocation decision is made by FISEA’s Chairman after he has obtained advisory opinions from FISEA’s Investment Committee, which is mainly made up of independent members and AFD members. The duration of the entire appraisal process varies depending on the complexity and maturity of the project, between 2 and 6 months.

 

ResponsAbility – Energy Access Fund

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $0.5-3M

Type of Investment: Equity and quasi-equity

Investors of Fund: IFC, Shell foundation, EIB

Primary Contact: Joseph Nganga, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: ResponsAbility looks at various stages of the project life cycle (development, construction and operations) with a particular focus on the development stage. While responsAbility Renewable Energy aims to diversify among a variety of technologies (mainly solar, biomass, wind and hydro), its main focus is on small- to medium-scale low-impact run-of-the-river hydropower. ResponsAbility Renewable Energy focuses both on attractive and successful renewable energy businesses and on creating prosperity by providing households and businesses with access to basic necessities for further development and improved living standards.

· Target Impact: Access to energy to the 1, 3 off grid/lower income population. Environmental, health and financial benefits for lower-income users. Job creation in the distribution supply chain in various countries across Africa and Asia.

Sustainable Energy Fund for Africa (SEFA) 

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $1-3M

Type of Investment: Grant or Equity

Investors of Fund: AfDB, Danish Government, Unites States

Primary Contact: João Duarte Cunha, This email address is being protected from spambots. You need JavaScript enabled to view it.; Serign Cham, This email address is being protected from spambots. You need JavaScript enabled to view it. 

Requirements for Financing:

· Project Requirements: The total project size should be between $30-200M. The project must be implemented in an AfDB Regional Member Country. Developers will be expected to provide at least 30% of the total pre-investment costs. State-owned utilities are not eligible for direct support.

· Co-funding Requirements: Projects should be sponsored by private sector or public sector agencies where the final project is to be an Independent Power Producer (IPP) or Public-Private Partnership (PPP).

· Target Impact: Mobilizing resources and financing the development of renewable energy projects in Africa.

· Due Diligence Requirements: The proposal should follow the SEFA guidelines requesting information on: project parameters (e.g. description of the project and company track record) and project status (e.g. current stage of the business plan, pre-feasibility studies, licenses and permits, project design, E&S Impact Assessments, etc.), and will then follow a process within AfDB.

Detailed Description of Funding Process Procedure: All proposals received will be screened and pre-assessed against the basic eligibility criteria by the SEFA Secretariat, housed in the Energy, Environment and Climate Change Department (ONEC) of AfDB. The SEFA Secretariat will submit best proposals to the ONEC Management Team in the form a Project Evaluation Note (PEN) for a first assessment of the project and clearance for the pipeline. Following ONEC management clearance, the project sponsors and the Bank Task Manager will prepare a Grant Request that shall be peer reviewed and later presented to a Technical Committee (TC). Proposals up to USD 1 million are recommended for approval at the Vice President level. Grants exceeding the equivalent of USD 1 million are transmitted for approval to SEFA Oversight Committee and the AfDB Board of Directors. The turnaround period is estimated at three to six months but can vary depending on the proposals and the project proponent’s ability to meet the information requests from AfDB throughout the process. The application for grant request can be submitted via Email (This email address is being protected from spambots. You need JavaScript enabled to view it.)

Vital Capital II

RE Technology of Interest: Biomass; Geothermal; Small hydro; Solar; Wind

Size of Investments: $10-50M

Type of Investment: Equity

Investors of Fund: Private Investors

Primary Contact: Dan Schoenfeld, This email address is being protected from spambots. You need JavaScript enabled to view it.

Requirements for Financing:

· Project Requirements: The key project requirements are significantly positive financial returns and social/environmental impact. Vital is an active investor, and will therefore typically seek to establish a controlling stake in whatever venture or business it will invest in. The fund will consider investing in ventures and businesses in all life-stages, from pre-seed (including complete greenfield ventures) to late-stage mature operations, including turnaround projects, with an aim to achieve an effective and profitable exit within 5-7 years of initial investment, typically achieved through the post-tax cash flows to shareholders generated by the business.

· Co-funding Requirements: Co-investors typically include DFIs. Vital Capital also expects the developer to invest in the project.

· Target Impact: Vital Capital follows IFC exclusion criteria and has its own impact methodology which reviews beneficiaries, locality, intrinsic impact, and essentiality. Investments systematically target companies where social and/or environmental impact is integral to the product or service being created: The fund has two teams, one financial and the other impact. Each are of equal importance and stature and led by senior executives of the fund. Both teams work in collaboration on every deal from the time it is sourced through exit. The fund is a GIIRS-rated fund, B-Corp certified firm, participant in Global Reporting Initiative and signatory of the United Principles for Responsible Investing. It follows the Impact Reporting and Investment Standards (IRIS).

· Due Diligence Requirements: Generation projects should submit the following evidence: Business plan with financial potential, indication of interaction with government with a good price for feed-in tariff, significant financial backing from off-taker, guarantee or support for debt, verified technology, options for EPC, and title for land (when required).

Detailed Description of Funding Process Procedure: The due diligence process follows 2 stages. The first stage includes a preliminary screening based on information the developers supply (business plan, financial model, etc.). This information is presented to the investment committee which will decide if there is motivation to begin due diligence. The screening stage should take 2-3 weeks. Stage 2 includes the full due diligence process, including site visits, legal and technical due diligence, financial analysis and the creation of a term sheet. This process can take up to 3 months.

  • Greenvest

    How can one access this fund? Can government contracts be funded?

  • Adetilewa Iyoha

    I am really interested in accessing the loan.

  • henry macaulay

    How can I be able to access loan

  • otterson Maduako

    Write your comment here...howvdo i get the loan and in what cnditionality?

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Nigeria‘s population of about 170 million people share 4,000 Megawatt of electricity between them. That amounts to about 3 light bulbs per person. However, Nigeria sees itself as a future world economic power. So how is Nigeria going to power its envisaged economic growth? What is Nigeria’s energy future?

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This web portal is the online presence of the Alliance on Nigeria's Energy Future, a discussion platform aimed at broadening knowledge of, and deepening public dialogue on, the possibilities of leapfrogging into a cleaner energy future in Nigeria. The Alliance aims to provide information and insights, and organise exchange of views between citizens, politicians, private sector, experts and civil society organizations on the various options for a sustainable future energy mix for Nigeria. Hosted by the Nigerian Economic Summit Group (NESG), this website is facilitated by the Heinrich Böll Foundation, in partnership with other member-organisations of the Alliance.

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