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Add to Preferred SourcesThe Board of Directors of the African Development Bank Group has approved an innovative multinational financing program for Distributed Energy Service Companies (DESCOs), which would see 900,000 households in sub-Saharan Africa – about 4.5 million people – gain access to solar power by 2025.
Elaborating on the program, Wale Shonibare, the Bank’s Acting Vice-President for Power, Energy, Climate Change, and Green Growth said the Bank will provide critical technical guidance and credit enhancement to DESCOs and local financial intermediaries.
“Accelerating access to universal, affordable, reliable, sustainable and modern energy for underserved populations requires innovative financing solutions. Innovations such as receivables-backed financing structures provided by the program are vital in the Bank’s efforts to unlock private sector participation and local currency financing for the energy sector,” Shonibare said.
The program will contribute to the installation of an estimated 45 MW of distributed solar PV which will provide clean energy access for 900,000 households by 2025 (4.5 million people). It will also create approximately 6,000 new direct jobs, mainly for the youth, and contribute to the avoidance of nearly 37.08 kilotons of CO2eq emissions per year.
The design of the program supports the Bank’s Financial Sector Development Policy and Strategy and Industrialization Strategy Flagship program to grow liquid and effective capital markets, and support innovative financing mechanisms.
Original source: AfDB
Published on 12 July 2019