- The solar mini-grids will be deployed by Winch Energy which has secured funding for their development.
- NEoT Offgrid Africa has partnered with Winch Energy to provide the funds.
- The projects will also be supported by development organisations of the British and German governments and the United Nations.
Winch Energy, an off-grid energy provider, will fund solar mini-grid projects in 49 villages across Uganda and Sierra Leone. The company has also created a new platform, Winch Energy IPP Holdings Limited (WIPP) to carry out the installations. This project will be the companies largest mini-grid financing project. Winch Energy is owned by Total Eren, Itochu Corporation, Al Gihaz Holdings and Winch Partners. SunFunder will contribute $2 million to the project development.
The project will be funded by investment from Winch Energy Limited in partnership with NEoT Offgrid Africa – a platform established by Meridiam, EDF and Mitsubishi Corporation. NEoT Offgrid Africa aims to support and accelerate the energy transition on the continent. The company has invested over €30 million ($36 million) in electricity services provision for 25,000 homes and businesses in Ivory Coast and Nigeria. The UK Foreign, Commonwealth & Development Office (FCDO, formerly DFID) and the United Nations Office for Project Services (UNOPS) will provide subsidies for Sierra Leone projects. Simultaneously, the German Development Ministry (BMZ), GIZ and the European Union will support the Ugandan projects. The mini-grids systems are expected to be completed in 12 months. The project will also provide internet services to host communities via partnerships with telecom operators in both countries.
Read also: Renewable Energy Improves Rural Communities in Sierra Leone
According to Nicholas Wrigley, CEO of Winch Energy Limited, the company is excited to have achieved the funding for the projects in Sierra Leone and Uganda. He also believes that the new platform (WIPP) will enable rapid scale-up of their operations in Africa. Not only does this deal pave the future for Winch Energy as a leader in large-scale off-grid renewables, it also stimulates economic growth and improves education and healthcare provision in remote communities,” he stated.
Director of NEoT Offgrid Africa, Frédéric Pfister, also acknowledged that the company is really proud to have set up this first of a kind financing scheme, especially as financing needs for energy access in Africa are huge, but challenging for private investors. “This deal will surely position NOA as a key player for financing mini-grids and other off-grid solutions – such as solar home systems (SHS) and commercial & industry installations – to provide much more energy access for people and industries in Africa,” he added.