Local Currency Blended Climate Finance for Renewable Energy Access in Nigeria.
ABOUT
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 and domestic institutional investors to co-finance clean energy investments alongside InfraCredit’s local currency guarantees in Nigeria.
Anchor Funder:
Co-Financing Partner:
Domestic Institutional Investors
Theory of Change
Clean Energy Access
Unlock affordable financing for private sector enterprises providing renewable 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.
Domestic Institutional Investors
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.
Development Assistance
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
Green Economy
Theory of Change
Clean Energy Access
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.
Domestic Institutional Investors
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.
Development Assistance
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
Green Economy
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.
RECENT PROJECTS
PRADO POWER ENERGY LIMITED
Green Finance for Off-Grid Rural Electrification in Nigeria
Financial Close
Oct. 2024
Under
Construction
N1.95bn Private
Capital Mobilised
Green
Certified
850kW
Capacity
15,801 Number of Connections
740 Jobs to be Created
893.53 Tonnes of GHG emissions to be reduced per year
The project will construct solar-hybrid mini grid with a total capacity 850kWp in four communities without grid access across Akwa-Ibom and Benue State. The mini grids are expected to connect about 15,801 households, small businesses and agro-processors. The project is expected to commence commercial operations by 2025. Prado Power Limited is a renewable energy company founded in 2014 to provide electricity access to unserved and underserved communities in Nigeria. The Company also provides Engineering, Procurement & Construction (EPC) and consultancy services on renewable energy projects.
Hotspot Network Limited, Nigeria
Green Finance for Sustainable Rural Telephony
Financial Close Jun. 2023
Under Construction
₦955m Private Capital Mobilised
Green Certified
324kw Capacity
120 Sites
720 Jobs to be Created
8.34 Tonnes of GHG Emissions to be reduced
The project will construct, install and commission solar powered base stations (sites) in 120 communities across 22 States in Nigeria. Hotspot is a telecommunication infrastructure and solar-powered rural telephony network provider, using renewable energy and climate-smart technology in operating telecom sites in off-grid rural parts of Nigeria. Under the Project, Hotspot established the special purpose vehicle, Micropolitan Mobile Connectivity Limited to raise local currency finance from the debt capital markets, to build, own, and operate solar-powered mobile network base stations in select rural communities in collaboration with MNOs in Nigeria.
Darway Coast, Nigeria
Green Bonds for Sustainable Rural Electrification
Financial Close Sep. 2022
Under Construction
₦800m Private Capital Mobilised
Green Certified
526KW Capacity
7,711 Number of Connections
2296 Jobs to be Created
4856 Tonnes of GHG Emissions to be reduced
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.
ACOB Lightning Technology Limited
Green Finance for Off-Grid Rural Electrification
Financial
Close Dec. 2023
Under
Construction
N755m Private
Capital Mobilised
Green
Certified
335kWp Capacity
3,597 Number of
Connections
868 Jobs
to be Created
352.15 Tonnes
of GHG Emmisions
to be reduced
The project will construct solar-hybrid mini grid with a total capacity of 335kWp in seven communities across Edo and Ondo State, the mini grid will provide energy access to about 3,597 households and small businesses. Construction is planned to commence in 2024. ACOB Lighting Technology Limited is a renewable energy company founded in 2016 to provide sustainable electricity to underserved and unserved communities. The Company also offers Engineering, Procurement and Construction (EPC) services for high-density energy-efficient LED streetlights and electrification infrastructure, solar mini-grids solutions and solar home systems.
PROJECT PIPELINE
EXPECTED IMPACT
Number of Communities
to be Created
CREDIT APPROVED PIPELINE PROJECTS
The 8 Credit Approved Pipeline Projects will report on energy access, number of connections, MW installed and private finance mobilised, and will have a positive contribution to the following United Nations Sustainable Development Goals (SDGs)
EXPECTED IMPACT
No. of Projected Connections to Energy Access
Projected Capacity (MW) to be installed
Local Government Area
to be Created
CLOSED PROJECTS
The 4 Closed Projects will report on energy access, number of connections, MW installed and private finance mobilised, and will have a positive contribution to the following United Nations Sustainable Development Goals (SDGs)
EXPECTED IMPACT
No. of Projected Connections to Energy Access
Number of Communities
to be Created
URBAN PIPELINE PROJECTS
EXPECTED IMPACT
Projected Capacity (MW) to be installed
Number of Communities
to be Created
URBAN CREDIT APPROVED PIPELINE PROJECTS
EXPECTED IMPACT
Number of Households and Businesses
Projected Capacity (MW) to be installed
Local Government Area
to be Created
No. of Projected Connections to Energy Access
Geographical Distribution
Collectively, renewable energy projects located in 35 states across the six geo-political zones in Nigeria have been approved for co-financing by the Facility.
Aiming for Net Zero
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 Efficiency
Energy-efficient appliances and equipments that lead to reduced energy consumption.
GHG Emissions Reduction
Renewable Energy Projects that reduce or avoid annual GHG emissions in tons of CO2 equivalent
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How It Works
The Facility will use its impact-seeking capital to provide blended first loss and low-interest funding to eligible renewable energy companies
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Development Impact
Private capital invested is ploughed back into the local economy creating a continuous cycle of job growth and innovation
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Projects
The projects will report on energy access, number of connections, jobs created, MW installed, gender inclusion, emissions avoided and private finance mobilised.
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Eligibility Criteria
Got a project? Check our eligibility criteria on how we choose, and conduct a self-assessment
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