Financing renewable microgrids in Africa

Over the last decade, great progress has been made in furthering electricity access in Africa. However, the pace of electrification must accelerate to achieve full access to electricity by 2030. Microgrid financing plays a pivotal role in reaching this goal.

However, financing renewable microgrids entails a unique set of challenges that reflect the nature of providing electricity to underserved, often rural, communities in Africa. Microgrid developers need access to long-term, low-cost debt.

However, local banks are often not familiar with the risks associated with off-grid renewable energy projects. This translates into higher interest rates and onerous collateral requirements that may leave little room for making these projects economically viable.

International banks and financial institutions may be more familiar with renewables; however, their financial products often require developers to taken on debt in a foreign currency, which they must service with income from local currency earnings. This leaves developers exposed to foreign exchange risk.

Despite these challenges, there are financial institutions and governments that are facilitating microgrid financing. Join a panel of seasoned experts on 13 November to learn more about how they are mitigating challenges to microgrid financing.

By attending the webinar organised by RePower, titled “Financing renewable microgrids in Africa”, you will:

• get an insider’s view on how to mitigate market, liquidity and operational risks in renewable microgrid projects in Africa;
• find out more about the financial instruments that international financial institutions, governments and banks are providing to support rural electrification; and
• learn strategies to secure financing for renewable microgrids from leading developers.

This online session is free to attend, but places are limited. Don’t miss this opportunity to hear from some of the leaders in the field of microgrid financing. Register here.

Image credit: Freepik