(AECF) has launched the Household Solar Round 2 Competition worth £16million to accelerate access to transformative solar home systems to the rural poor households in Nigeria, Ethiopia, Somalia, Ghana, and Senegal. Its Senior Programme Officer, Mr. William Mulehi, disclosed this in a media Roundtable on RAECT Household Solar Competition in Abuja. The programme is to
(AECF) has launched the Household Solar Round 2 Competition worth £16million to accelerate access to transformative solar home systems to the rural poor households in Nigeria, Ethiopia, Somalia, Ghana, and Senegal.
Its Senior Programme Officer, Mr. William Mulehi, disclosed this in a media Roundtable on RAECT Household Solar Competition in Abuja.
The programme is to fund businesses promoting house solar systems to rural markets in sub-Saharan Africa.He said that the funding is in partnership with the DFID United Kingdom Government.
He noted that “REACT Household Solar Round Two (REACT Hs R2) is a N20.8million project funded by the DFID UK to improve energy access for people in sub-Saharan Africa who are currently without energy, through a modern-based approach for private sector delivery of solar homes products and services.
“The project, which commenced in July 2018, will run for five years and be implemented in Somalia, Ethiopia, Ghana, Senegal and Nigeria. REACT HS R2 seeks to address a critical component of climate change through clean energy access in target countries that are confronted with increasing energy demand in the coming decades resulting from demographic, socio-economic and resource related factors.
“Citing the International Renewable Energy Agency (IRENA) 2019, AECF said that “off-grid renewable energy solutions, including stand-alone systems have emerged as a mainstream, cost-competitive option to expand access to electricity, providing a viable electrification solution that is rapidly scalable, environmentally sustainable, can be tailored to local conditions and importantly, has the potential to empower rural communities, especially for youth and women. This provides us with the justification to invest in private sector to deliver on.”
The REACT Household Solar Term Sheet Nigeria that was released to journalists at the Roundtable, said that applicants must deliver low cost, affordable, quality solar homes systems that benefit rural, and peri-urban poor, especially women.
On desired socio-economic impact, the organization noted that the business models must clearly demonstrate how they deliver and sustain social economic impact in their target markets in an environmentally friendly way.
REACT provides capital ranging from $100,000 to $1.5million interest free loans, grants, and technical assistance to the companies that succeed from the competition.
On the selection criteria, REACT said that it has to be certified products, with ability to match AECF funding on a 1:1 to 1:2 ratio.
The investor, said the term, must prove financial sustainability.