- The EIB and ISA have released a report that tackles challenges with off-grid solar financing.
- The report is based on a detailed study in Nigeria, Uganda and Rwanda.
- The EIB currently supports 8 off-grid solar projects.
The European Investment Bank (EIB) and the International Solar Alliance (ISA) have published a study that outlines solutions to overcome key affordability and investment challenges deterring Africa’s off-grid solar sector investments. The report is based on research in Nigeria, Uganda, and Rwanda. The study combines experience and expertise from successful off-grid deployments in these countries and proposes ways to unlock investments and increase access to solar power. The study was commissioned by the EIB in partnership with the ISA and compiled by development advisors Dalberg.
The report analyses how partnership and cooperation between African, European and global partners can unlock investment and technical barriers that hold back sustainable development and the green transition. The report highlights five key challenges that, when addressed, can unlock high-impact local energy investment essential for sustainable development and economic growth on the continent. The analysis proposes local solutions such as the aggregated purchase of solar home systems that can reduce costs and rapidly enable low-income, urban and rural communities and refugees to access reliable energy through sustainable private sector-led off-grid solar projects. The study recommends different intervention models to overcome financing, technical, and customer challenges to scale up off-grid solar deployment.
The European Investment Bank currently supports 8 off-grid solar projects in Chad, Comores, Gambia, Kenya, Mozambique and Uganda. In 2020, the EIB provided €5 million for private and public investment across Africa.