The Climate Finance Blending Facility (the “Facility”) is a catalytic first loss multi-donor facility seeded with £10 million concessional funding by the UK Foreign, Commonwealth & Development Office (“FCDO”) to mobilise additional funding from development partners to co-finance off-grid clean energy investments alongside InfraCredit’s local currency guarantees in Nigeria.
Unlock affordable financing for private sector enterprises providing off-grid energy solutions such as solar mini grids, solar home systems, solar lanterns, fridges, pumps, driers and clean cooking products, small medium enterprise coolhubs for unserved and underserved markets.
Catalyse green investments in local currency from domestic private institutional investors such as insurance companies, local pension funds, and other asset managers including low carbon energy focused funds from the domestic debt capital markets.
Innovative blended finance approach for donors and concessional financiers, to make smart use of impact-seeking capital to de-risk, reduce the capital cost and mobilise private sector financing towards increasing clean energy access in Nigeria in line with Nigeria’s Nationally Determined Contributions
Promote green growth and climate resilient development by enhancing access to renewable energy for productive uses and boosting agricultural development whilst transitioning to a low-carbon economy that will create jobs, reduce poverty, promote gender diversity and stimulate local economic growth.
Green Bonds for Sustainable Rural Electrification
Darway Coast is a renewable energy company with expertise in the provision of hybrid solar mini-grid and micro-grid solutions for residential, commercial, and industrial customers in off-grid and underserved areas within Nigeria. Incorporated in 2015, the Company has deployed four mini grids serving four communities in Imo State (3.3kW), Lagos State (50kW), and Rivers State (38kW) under ten-year PPAs. Using a “Pay-As-You-Go” business model and smart meters, Darway Coast can manage these customers using a remote monitoring system that helps regulate demand, detect, and resolve issues swiftly as well as implement remote disconnections and reconnection.
The project will construct 526.1 Kw total capacity of isolated solar mini-grids in six communities without grid access within Rivers State and Abia State in Southern Nigeria, that will connect 7,711 households and small businesses. Construction is planned to commence in 2022 and operations for 2023.
Number of Communities
Projected Capacity (MW) to be installed
(USD 12.8 Mln) Private capital to be mobilised
The Facility will use its impact seeking capital to blend the cost of Eligible Green Projects aimed at fulfilling two main environmental objectives: climate change mitigation and energy transition to a low-carbon economy.
Energy-efficient appliances and equipments that lead to reduced energy consumption.
Renewable Energy Projects that reduce or avoid annual GHG emissions in tons of CO2 equivalent
The UK has seeded a climate finance facility with £10 million to co-finance off-grid clean energy in Nigeria, reducing capital costs through first loss subordinated capital.
Innovative blended finance solutions can make smart use of impact-seeking capital from donors and concessional financiers, to de-risk, reduce the capital cost and mobilise private sector investments to accelerate clean energy access in Nigeria.
We pioneered the first-ever credit enhanced, green certified blended local currency debt issue for a solar powered rural mini-grid project in Nigeria, through the Climate Finance Blending Facility, creating demonstration effect and potential for scaling.
There’s enormous impact in unlocking energy access through green life-saving investments that will create jobs, reduce poverty, promote gender inclusion and stimulate local economic growth.
The Facility will use its impact-seeking capital to provide blended first loss and low-interest funding to eligible off-grid energy companies
Private capital invested is ploughed back into the local economy creating a continuous cycle of job growth and innovation
The projects will report on energy access, number of connections, MW installed and private finance mobilised.
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