- KfW has established a new fund to scale mini-grids deployment in Africa.
- The new funds aim to provide energy access to 350,000.
- The fund will have an initial budget of €49 million.
The German development bank KfW has established a Clean Energy and Energy Inclusion for Africa foundation to scale mini-grid deployment. The foundation will acquire and install mini-grids and offer incentives to accelerate private sector investment. The foundation will have an initial budget of €49 million.
The fund will provide grant financing for mini-grids and DRE systems, including home solar systems and solar-powered lights, cooling, mills, and pumps. The fund plans to partner with crowd-funding lenders, including Sweden’s Trine, to achieve its targets; the foundation aims to facilitate the deployment of at least 190 mini-grids with a cumulative generation capacity of 17MW.
KfW has already committed to a €23.5 million program – the Green Citizen Energy for Africa – to deploy mini-grids in Mozambique. This programme aims to provide energy access to over 7,000 homes and rural businesses. The new KfW fund aims to provide energy access to 350,000 people on the continent. Switzerland and Australia have indicated an interest in also joining the foundation.