Access to Energy Fund
The fund supports energy generation, transmission and distribution projects in Sub-Saharan Africa, ultimately aiming to connect 3.2 million people by 2018. The fund focuses on sustainable energy solutions, which is a focus area for FMO as a whole. The projects should have the potential to boost economic development and ultimately alleviate poverty. They should also be able to demonstrate an impact on creating new or improved energy access. Funding possibilities include: minority shares in equity investments, loans of up to EUR 7 million, and early stage equity to contribute to the high-risk, early stage project development phase. Affordable, clean and renewable off-grid energy solutions are specifically targeted.
AEF’s strategy focuses on five themes:
- Access to energy for households as yet unreached;
- Captive power production for SMEs;
- Transmission & Distribution projects to ensure that power generation assets that have been developed will also be connected to the grid;
- Impactful and scalable tech-related energy innovations; and
- Clean cooking solutions, including more efficient cook stoves and biodigesters.
AEF will further expand its work in innovations that have the potential to transform markets. These include (i) the exploration of co-investment opportunities to increase development impact and strengthen the bankability of end clients benefiting from AEF funding; (ii) an expansion of investment in social enterprises; and (iii) research on gender impact mapping in climate mitigation projects. A Capacity Development and M&E budget of EUR 5 million has been made available.
The best way to access the fund is to present the project to the departments of Energy and Private Equity.
Total Fund size is EUR 102 million of which approx. EUR 40 million is still available