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Financing Distributed Low Carbon, Climate Resilient Energy Systems of the Future in Africa and Asia (Learning Theme 1)

Learning Theme 1 has taken a collaborative approach, making use of existing community of practice forums and developing joint work products and learnings that can be applied at the subnational level across the IKI focal countries.

 

Learnings have been facilitated through workshops, direct exchanges and a series of webinars that have attracted a wide audience through the effective collaboration with partners.

 

Learning Theme 1 builds on and leverages off:

 

    • The IKI MI workstream in Ethiopia identifies opportunities within policy and regulatory framework to accommodate private sector involvement in mini-grid development.

 

    • The IKI MI workstream in Kenya identifies opportunities for the private sector to play a role in developing the bioethanol value chain as an alternative cooking fuel to kerosene and relevant policy.

 

    • The workstream in Bangladesh aims to develop bankable business models and investment cases for solar mini-grids, solar irrigation pumps and solar boats. This is supported by a geospatial mapping tool indicating optimal sites for the rollout of solar irrigation pumps.

 

    • The LEDS GP’s African Mini-grids Community of Practice (CoP) that is supporting the efforts of the governments of Nigeria, Kenya, Ghana, Sierra Leon, Namibia, Tanzania, Uganda, Cote D’Ivoire, and others to advance enabling policy and innovative financing solutions for micro-grid scale up.

 

    • LEDS GP work through the Africa LEDS Partnership and the Finance Working Group on exploring scaled-up financing strategies, including blended financing opportunities for distributed renewable energy and energy access initiatives as a means of climate resiliency (combating desertification, water scarcity, heat protection, etc.) and mitigation.

 

    • LEDS GP work through the Asia LEDS Partnership on the NDC Finance Community of Practice and Global Green Bonds Partnership.

 

Outputs include:

 

    • Recommendations on Smart Incentives for Mini-grids, drawing on interviews with key finance players, government representatives, and in-country developers. The study identifies incentive designs that could attract and leverage private sector capital and rapidly scale investment into energy access micro-grids across Africa.

 

    • Supporting a bilateral exchange visit between Nigeria and Ethiopia on best practices for scaling mini-grids as a core element of government-led electrification strategies

 

Visit the International Climate Initiative (IKI) Website 

 

Return to the IKI MI webpage

 

Resources

Bilateral exchange visit between the Governments of Ethiopia and Nigeria

Full report - A Guide for Policy Makers: Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design

Synopses profiled by Africa LEDS Partnership: Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design

Synopsis and Release of Policy Guide from LEDSGP Guidebook: Smart Incentives for Mini-Grids through Retail Tariff and Subsidy Design

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