Local Currency Blended Climate Finance for Off-Grid Energy Access in Nigeria.

climate bond standard certfied
Leveraging Green Finance to Unlock Universal Energy Access for Productive Use, One Community At A Time.
Climate Finance Blending Facility will be the first of its kind to receive certification under the Electrical Grids and Storage criteria by the Climate Bonds Standard.

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 off-grid 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 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.

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

Green Finance for Off-Grid Rural Electrification in Nigeria

Green Finance for Off-Grid Rural Electrification

green-certified
Financial
Close Dec. 2023
Under
Construction
N755m Private
Capital Mobilised
Green
Certified
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.

Hotspot Network, Nigeria

Green Finance for Sustainable Rural Telephony

green-certified
Financial Close Jun. 2023
Under Construction
₦955m Private Capital Mobilised
Green Certified
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

green-certified
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.

PROJECT PIPELINE

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The 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

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No. of Projected Connections to Energy Access
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Number of Communities

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Jobs
to be Created
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(USD 63.9 Mln) Private capital to be mobilised

CREDIT APPROVED PIPELINE

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The 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

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No. of Projected Connections to Energy Access
0

Projected Capacity (MW) to be installed

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Number of Communities

0
Jobs
to be Created
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Tonnes of GHG Emissions to be reduced
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(USD 12.8 Mln) Private capital to be mobilised

Geographical Distribution

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States
Collectively, off-grid 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.

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Energy Efficiency

Energy-efficient appliances and equipments that lead to reduced energy consumption.

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GHG Emissions Reduction

Renewable Energy Projects that reduce or avoid annual GHG emissions in tons of CO2 equivalent

The Green Financing Framework guides the process for identifying, selecting, verifying, and reporting on the sustainable projects that are eligible for financing through the Facility, including its specific use and management.

Featured Videos

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Green Finance for Solar Powered Rural Telephony in Nigeria

The Solar Powered Rural Telephony project executed by Hotspot Network Limited will construct, install and commission solar powered base stations (sites) in 120 rural communities across 22 States in Nigeria.

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Domestic Institutional Investors Darway Coast Solar Mini Grid Projects

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.

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Climate Finance Blending Facility

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.

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Clean Energy Funding Programme

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.

Play Video
Darway Coast Solar Power Project

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.

How It Works

The Facility will use its impact-seeking capital to provide blended first loss and low-interest funding to eligible off-grid 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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