TechPression

Tag: solar energy

  • Orange, d.light team up for off grid Solar Energy in Africa

    Orange, d.light team up for off grid Solar Energy in Africa

    A strategic partnership has been established between Orange Energies, the energy business section of the global telecom operator Orange, and d.light, the global provider of transformations, to promote and market d.light solar home products and systems in 11 African countries.

    For the past decade and 7 years, d.light products have transformed more than 172 million lives across 70 countries. They envision a brighter future where all people are empowered to enjoy the quality of life that comes with access to affordable and sustainable products.

    Household products and affordable finance for low-income households have partnered with global telecom operator Orange business unit to open up access to d.light’s range of low-cost solar products for customers in African countries.

    Read also: d.light’s Solar secures N10bn financing for Nigerian markets

    Through the Orange Smart Energies platform, orange consumers can purchase d.light solar-powered devices, such as portable solar torches, TVs, fans, solar inverters, and home systems.

    The partnership agreement is already running in Ivory Coast, where Orange has thirty million customers, Cameroon, Liberia, Sierra Leone, Madagascar, and the Democratic Republic of Congo (DRC). The expansion will spread through five African countries in which Orange operates – Senegal, Mali, Burkina Faso, Guinea, and the Central African Republic (CAR).

    Orange’s stores, partner retail locations, and sales representatives carry d.light items. Consumers can make purchases utilising “Pay As You Go” (PAYG) by using the Orange Money service to make payments.

    Mobile Operators’ Key to Expand Off-Grid Solar Access

    Based on the agreement, Nick Imudia, CEO of d.light, commented that Mobile operators are natural partners for off-grid solar providers like d.light as they have the scale and the resources to reach rural communities in remote locations that are not connected to the energy grid. Furthermore, Orange Money and other operator billing-based mobile money systems allow low-income people to pay for solar equipment when and when they can. People can use straightforward mobile prepayment to obtain reasonably priced sustainable solar energy options.

    In addition, according to the International Energy Agency, in 2022, 600 million people in Africa were without access to electricity. The impacts of the global pandemic and the international energy crisis combined to slow down and obstruct the progress made in recent years to improve electricity access across the continent.

    Read also: Solar Pay-go Scaleups Get Large Share Of Debt Financing

    d.light Goals: Closing the Energy gap in Africa

    There is still much work to do to extend the availability of reliable, affordable electricity to low-income households and off-grid communities in Africa so that many more people can benefit from the improved living standards, opportunities and economic development that it enables.

    d.light organisation is taking advantage of its two areas of competence, inexpensive personal financing and high-quality solar goods, to significantly impact the Sub-Saharan African market through d.light’s cooperation with Orange. Having access to clean, safe solar energy by 2030 would enable d.light to better the lives of over a billion people worldwide.

  • Hohm Energy connects South Africans with Solar Energy 

    Hohm Energy connects South Africans with Solar Energy 

    South Africa is facing a severe energy crisis that threatens to disrupt the lives and livelihoods of millions of people. 

    The country’s power grid is unable to meet the growing demand for electricity, resulting in frequent blackouts and load shedding. According to Eskom, the state-owned utility company, South Africa sometimes experiences a power shortfall of more than 6,000 megawatts, which is equivalent to the output of six large power plants.

    The situation is not better in other African countries, where access to reliable and affordable electricity is still a major challenge. 

    According to the World Bank, only 43% of the population in sub-Saharan Africa has access to electricity, and the region has the lowest per capita electricity consumption in the world.

    Read also: Okra Solar will provide solar energy to  76,000 Nigerians

    The solution: a marketplace for rooftop solar

    To address this problem, a South African startup, Hohm Energy, has developed a platform that connects homeowners and businesses with accredited solar installers, product suppliers, and embedded solar finance. The startup aims to make rooftop solar more accessible, affordable, and convenient for customers while also providing solar installers with tools and workflows to streamline their operations and grow their businesses.

    Hohm Energy was founded in 2021 by Tim Ohlsen and Emir Gluhbegovic, who has a background in the solar industry and digital utility space. The startup has recently raised $8 million in seed funding, which is the largest seed round for a tech startup in South Africa, according to the company. The round was led by E3 Capital and 4DX Ventures, with participation from Breega, E4E Africa, Musha Ventures, Climate Capital Ventures, TO.org, Tekton Ventures and Sunu Capital.

    The startup claims to have a potential market of over 7 million households connected to the national grid in South Africa, where rooftop solar is estimated to be a $51 billion opportunity. Hohm Energy’s platform allows customers to get a personalised quote for their solar system based on their property’s location, roof size, energy consumption, and budget. The platform then matches them with a trusted solar installer, who handles the installation, maintenance, and warranty of the system. Customers can also access credit financing options through Hohm Energy’s partners, making the upfront cost of solar more affordable.

    The differentiation: a Home Ranger for quality assurance

    One of the key features that sets Hohm Energy apart from other solar platforms is its Home Ranger service. A Home Ranger is a trained and certified professional who supervises every installation initiated through Hohm Energy’s marketplace. The Home Ranger conducts a comprehensive assessment of the property, ensuring that the solar system meets the technical and legal requirements and that the customer is satisfied with the outcome.

    Hohm Energy’s CEO Tim Ohlsen said that the Home Ranger service is designed to provide customers with peace of mind and confidence in their solar investment. “Purchasing a solar system can inevitably be a very costly investment. Our average order value ranges between $8,000 [and] $12,000. We have done extensive installations, too, so it is not something people haphazardly decide on,” he said. “It is something they take a lot of interest in, and it’s just a tough place for them to navigate. We do a lot of research so that when they come into the marketplace, we match them with a trusted solar installer, so they don’t have to worry about the quality of the installation.”

    The vision: to scale the solar industry in Africa

    Hohm Energy’s vision is to scale the adoption of rooftop solar across South Africa and beyond by creating a win-win situation for customers, installers, and finance providers. The startup provides customers with a digital platform that simplifies the process of going solar while also offering them access to credit financing. The startup also provides installers with mobile apps and SaaS tools that help them manage their projects, from design and scheduling to procurement and invoicing. The startup also connects installers with finance providers, who can offer them working capital and inventory financing.

    Ohlsen said that by reducing the friction and inefficiencies in the solar value chain, Hohm Energy is unlocking new growth potential for the solar industry in Africa. “We walk the client through the journey and also work very closely with our trusted solar partners, providing them mobile apps and SaaS tools and workflows to streamline how they work with us and get access to quality jobs that originate and finance through our marketplace,” he said. “Inevitably, we’re reducing friction for the homeowner, the solar installer, and finance providers and unlocking new growth potential that makes this, in our minds, the model to scale the solar industry.”

    The startup plans to use its seed funding to expand its team, improve its product, and grow its customer base. The startup also aims to enter new markets in Africa, where the demand for clean and reliable energy is high. Ohlsen said that Hohm Energy’s mission is to empower people to harness the power of the sun and contribute to a sustainable and prosperous future for the continent. “We believe that solar is the future of energy, and we want to make it accessible and affordable for everyone,” he said. “We want to be the leading platform for rooftop solar in Africa and help millions of people switch to clean and renewable energy.”

  • Dell Technologies, SHAWCO unveil solar community hub in Cape Town

    Dell Technologies, SHAWCO unveil solar community hub in Cape Town

    In a groundbreaking partnership, Dell Technologies and SHAWCO have launched the Kensington Solar Community Hub in Cape Town, a transformative facility designed to elevate the well-being and educational opportunities of the local community.

    This expanded hub now encompasses a medical clinic alongside its existing educational programs, providing vital digital skills and International Computer Driving Licence (ICDL) certifications.

    Jackie Stewart, Executive Director of SHAWCO, underscored the significance of collaborating with Dell Technologies on this pioneering Solar Community Hub in South Africa. This initiative stands as a potential template for fostering positive change, showcasing what can be achieved in other regions of South Africa and beyond Dell’s Giving programs. It highlights the shared commitment to nurturing the growth and impact of digital literacy and addressing social disparities in the country, particularly related to access to technology and essential resources.

    Read also: Microsoft’s nuclear-powered data center in SA might cost $1bn

    A Joint Commitment to Empowerment

    Dell’s Solar Community Hubs serve as a gateway to the digital economy, offering not only essential services but also empowering individuals with digital skills. With 12 hubs spread across South Africa, SHAWCO operates mobile health clinics at these facilities, providing free medical consultations and health education to those in need.

    Natasha Reuben, Head of Transformation at Dell Technologies in South Africa, emphasized the importance of this partnership in ensuring that the Kensington community receives dignified healthcare. The initiative extends crucial support by bringing healthcare, education, and social services to the community, contributing to progress through collaborative efforts.

    Doug Woolley, Managing Director for Dell Technologies in South Africa, echoed Reuben’s sentiments, highlighting the hub’s pivotal role in supporting comprehensive community growth. He expressed excitement about expanding the mission to provide digital access, particularly with the addition of a valuable healthcare facility.

    The Kensington Solar Community Hub boasts several notable features. The community-managed health clinic is equipped with multi-purpose rooms for health screenings and various healthcare services, with the support of Dell Solutions.
    Within the clinic, SHAWCO operates its Beyond Education Health Clinics and Violence Protection Programme, addressing the broader healthcare needs of the community.

    The hub’s structure, a merger of three units into two 40-foot containers, accommodates up to 23 computer users. Community members have the opportunity to earn ICDL certification, granting international recognition for their computer skills and enabling them to become certified trainers.

    The hub offers comprehensive training in Microsoft Office applications such as Word, Excel, and PowerPoint, along with coding classes to nurture valuable digital skills. Summer School lectures from the University of Cape Town are broadcast at the hub, expanding educational horizons for community members.
    In the future, the hub plans to include rainwater collection, further enhancing its capacity to serve the community’s diverse needs.

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    Empowering Communities through Progress

    This visionary partnership reflects the shared commitment of Dell Technologies and SHAWCO to uplift communities by providing critical resources, healthcare, and educational opportunities. The Kensington Solar Community Hub represents a model of progress and empowerment, fostering digital literacy and enhancing the well-being of the Kensington community in Cape Town. It stands as a beacon of hope and progress, demonstrating the transformative power of partnerships that focus on the well-being and digital empowerment of communities.

  • African families turn to solar energy as governments’ electricity supply dwindles

    African families turn to solar energy as governments’ electricity supply dwindles

    In a region where power outages are a common daily challenge, families and businesses in sub-Saharan Africa are increasingly turning to off-grid solar solutions, driven by an unreliable grid and rising electricity costs. 

    According to the World Bank, the number of mini grids, which solar systems support to power homes or businesses, has grown from 500 in Africa in 2000 to 3,000 today.

    Read also: Bboxx Acquires Ghana solar energy provider, PEG Africa

    Solar Energy’s Growing Influence in Kenya

    Kenya, for example, has witnessed a surge in the adoption of solar energy due to escalating electricity prices caused by higher fuel costs. This trend isn’t limited to individual households; even steel manufacturers and cooking oil factories have embraced solar energy, with some of the biggest clients for Nairobi-based company CP Solar.

    According tho the Associated Press, CP Solar’s managing director, Rashmi Shah, highlighted their achievement of installing 25 megawatts of solar systems in the past six years. He emphasized that solar energy, despite the initial high installation costs, offers clients the ability to recoup their initial investment through savings within the first four years.

    “We are not polluting the air at all; we are not raising the temperatures; we are not affecting the climate of the Earth. So that is why more and more emphasis is coming to cleaner energy,” Shah explained, emphasizing the growing focus on cleaner and more sustainable energy sources.

    While over half a billion people in sub-Saharan Africa still lack reliable access to electricity, renewable energy, particularly solar power, has emerged as a promising solution. Sub-Saharan Africa holds 60% of the world’s solar potential, making it uniquely positioned for solar energy adoption.

    Kenyan President William Ruto emphasized the region’s abundant sunshine during a ministerial session at a recent climate summit, underscoring the untapped solar potential in Africa.

    Growing popularity of solar energy  in Nigerian homes

    In Nigeria, as in Kenya, the landscape is changing. Historically, many households have relied on gasoline generators for power. However, the removal of a gasoline subsidy by the government has sparked increased interest in solar power as a more affordable and sustainable alternative. Currently, only about half of Nigerians are connected to the grid, and power cuts remain commonplace.

    While the Nigerian government has yet to introduce incentives to promote solar energy, such as reducing import taxes on solar equipment, the private sector has stepped up to fill the gap. Private companies are now offering households and small businesses the option to pay for solar installations over time, addressing the issue of high upfront costs.

    Some Nigerians shared their observations with the Associated Press.

    “The problem was affordability, but now customers can pay instalments over a period of 18 months,” said Tunde Oladipupo, an agent for Sun King, a solar power company. This innovative payment model has proven to be a solution for social problems arising from Nigeria’s energy crisis, especially in underserved and low-income households.

    Monsurat Qadri, a Nigerian resident, shared her experience with of tackling the challenge of helping her daughter with homework in the evenings without reliable lighting. With grid electricity unavailable and generators becoming prohibitively expensive, she installed a small solar system that powers five bulbs and a fan. Monthly instalments make the system affordable for her.

    Unlike Kenya, solar power adoption for industrial use in Nigeria is rare, with very few big industrial productions relying on solar power.

    TubimEnergy tackles Africa energy crisis with solar bundles

    South African government’s initiatives to boost renewable energy

    Meanwhile, in South Africa, the government has introduced policies to encourage the generation of renewable energy by mining companies and large industrial operations. Several companies, including Sibanye Stillwater, Anglo American Platinum, and Gold Fields, have announced plans to generate significant amounts of renewable power.

    South Africa is also moving to reduce its dependence on coal-fired power, with plans to convert decommissioned power stations to clean generation using solar and wind energy sources.

    Many other African governments are gradually beginning to see the importance of renewable energy with the continued increase in the price of fuel, which has risen over $80 per barrel in 2023.

  • Nigeria turns to gas, solar energy for economic survival 

    Nigeria turns to gas, solar energy for economic survival 

    Nigeria, often referred to as the “Giant of Africa,” is poised for a transformative shift in its energy landscape. As the world grapples with the consequences of climate change and the global community increasingly turns away from fossil fuels, Nigeria has a golden opportunity to transition towards a more sustainable and economically viable energy mix, focusing on gas, and solar energy sources.

    Read also: Tinubu promises 3,000 CNG-Fueled mass transit buses

    Unlocking Nigeria’s Energy Potential: Expert Insights

    Leading industry experts, who have closely monitored Nigeria’s energy landscape, agree that the country’s immense gas reserves present a unique opportunity for economic revival and environmental sustainability. Dr. Amina Mohammed, former Deputy Secretary-General of the United Nations and a prominent Nigerian environmentalist, emphasises, “Nigeria must leverage its abundant natural gas resources to chart a new path towards energy sustainability. This transition will not only mitigate climate change but also drive economic growth and job creation.”

    These views echo the sentiments of Dr. Folarin Gbadebo-Smith, an energy economist at the Nigerian Institute of Economic and Social Research (NIESR). In an exclusive interview, he remarked, “Gas is the bridge between fossil fuels and renewables. Nigeria’s extensive gas reserves, both associated and non-associated, can be harnessed to provide clean-burning fuel for power generation, industrial processes, and domestic use.”

    Pioneering State Initiatives

    Several Nigerian state governments have taken proactive steps towards transitioning to alternative energy sources. One shining example is Lagos State, which has initiated projects to increase the use of natural gas for electricity generation and public transportation. Governor Babajide Sanwo-Olu, in a recent address, underscored the significance of this transition, stating, “We are committed to reducing our carbon footprint and providing cleaner and more efficient energy solutions for our people.”

    Furthermore, Edo State has embraced solar energy through initiatives like the “Edo Solar Revolution.” Governor Godwin Obaseki is actively encouraging investments in solar power projects, aiming to harness the abundant sunlight to meet the state’s energy needs while creating jobs for its citizens.

    Assessing the Tinubu Administration’s Commitment

    With the President Bola Tinubu-led government in the spotlight, many are keen to know if the administration is actively working towards a sustainable energy future. A recent statement from the Minister of Power, Works, and Housing, Engr. Abdulahi Suleiman, reveals some promising developments. “Under the leadership of President Bola Tinubu, we are committed to diversifying Nigeria’s energy mix. We recognize that gas, electric, and solar energy are essential components of our energy transition strategy.”

    However, critics argue that more concrete actions and policies are needed to ensure a successful transition. Mr. Adewale Adegun, an environmental policy analyst, highlights, “The government’s commitment is commendable, but we need to see a clear roadmap, incentives for renewable energy investments, and stricter regulations on emissions.”

    TubimEnergy tackles Africa energy crisis with solar bundles

    Projections for Nigeria’s Energy Transition

    Looking ahead, Nigeria has the potential to become a regional leader in renewable energy. The abundant sunlight that blankets the nation throughout the year offers a unique advantage for solar power generation. Solar farms, combined with advancements in energy storage technologies, could help alleviate the chronic electricity shortages that have hindered economic growth.

    Moreover, as the world shifts towards cleaner energy sources, Nigeria’s natural gas reserves can serve as an invaluable export commodity. International demand for liquefied natural gas (LNG) is expected to rise significantly in the coming decades, as the International Energy Agency (IEA) forecasts that global demands for LNG will increase by 50% by 2030. Nigeria is well-positioned to capitalise on this trend.

    In essence, Nigeria stands at a crossroads in its energy journey. With the right policies, investments, and a commitment to sustainability, the nation can unlock its vast energy potential while simultaneously driving economic growth. The collective efforts of state governments, industry experts, and the federal government are vital in ensuring a successful transition towards gas, electric, and solar energy sources. As the global energy landscape evolves, Nigeria has a golden opportunity to lead the way in Africa and secure its place in the clean energy future.

  • Yellow Africa secures $14 million for Solar energy solutions in Africa

    Yellow Africa secures $14 million for Solar energy solutions in Africa

    Sub-Saharan Africa’s adoption of solar energy to electrify homes and close the electricity access gap has increased dramatically. 

    Solar energy kits are the most popular way to bring sustainable energy to families, according to new research. Malawian asset financier Yellow Africa is leading this energy revolution.

    Yellow has financed clean energy solutions in developing countries, promoting financial inclusion and grid connection.

    To achieve this innovative goal, Yellow launched a $14 million Series B fundraising round sponsored by Convergence Partners, the Energy Entrepreneurs Growth Fund, and Platform Investment Partners. With this huge investment, Yellow will expand in select Sub-Saharan African regions, strengthening the renewable energy movement.

    Mike Heyink and Maya Stewart founded Yellow in 2018 to close the power access gap in Malawi, its first market. Malawi was among the “top-20 access deficit countries,” along with Nigeria, Ethiopia, Pakistan, Chad, Angola, and Bangladesh. Malawi loved Yellow’s Pay-As-You-Go solar home system. By June 2021, the startup will have electrified 81,919 residences, impacting thousands.

    Read also: Technip Energies Projects Optimise Namibia’s Energy Mix

    Uganda, Rwanda, Zambia, and Madagascar are among the African countries where the startup operates. TVs and cell phones are now part of the company’s renewable energy mission.

    In Sub-Saharan Africa, 200 million people still lack mobile broadband connections, underscoring the need for holistic solutions. Yellow plans to solve this problem by financing smartphones and solar systems with the newly infused funds.

     

    Yellow Africa Funding Strategy

    Yellow wants to broaden its product offering to include other mobile financial services as part of its expansion strategy.

    “The newly injected capital is being used to leverage more debt finance to reach more customers with financed smartphones and solar systems,” Yellow CEO and Co-founder Mike Heyink said of the round. While the business will expand its product offering to include other mobile financial services, growth will be driven by expanding our expertise in our core product categories.”

    Yellow’s $45 million investment round shows growing support for its purpose. Over the past four years, the solar energy startup has grown 265%, establishing its industry leadership. Yellow has over 1,000 agents, expanding its reach and distribution in its area.

    Yellow’s house solar system has a 6W–10W panel, a 20–50Wh battery, four lights, a mobile charger, and a radio. 

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    This system requires a $10 down payment and six monthly instalments. Yellow also offers a larger house solar system with a $68, 24-month commitment. Customers can afford clean energy solutions and change their lives with these flexible payment choices.

    Yellow’s vision has driven the solar energy revolution in Sub-Saharan Africa, increasing electricity access and economic opportunity. With large financing, the company can reach more communities and transform them through solar energy and other important services. 

    Yellow continues to innovate and scale, establishing its role as a catalyst for change, sustainable development, and a brighter future in the region.

  • Okra Solar will provide solar energy to  76,000 Nigerians

    Okra Solar will provide solar energy to  76,000 Nigerians

    The Electrification Finance Initiative (ElectriFI), an European Union (EU) funded programme, has approved a working capital of $4.5 million for Okra Solar to use solar mesh-grids to target 76,000 energy access beneficiaries in Nigeria by the end of 2025.

    Okra Solar, which received the funding, recently developed the mesh-grid technology specifically to electrify underserved or unserved communities.

    Their proprietary Okra Pod is a device that enables the solar systems installed at each household to communicate and share power through a low voltage transmission cable (creating the mesh-grid). The pods are sold with PV panels, batteries and inverters.

    The company has started focusing on the highly strategic Nigerian market and wants to deploy multiple pilot projects to energize more than 30,000 households in-country over the next two to three years. 

    Read also: Husk Power installs 8 Solar Microgrids across Nigeria

    The Transformative Technology 

    ElectriFI senior investment officer at EDFI MC, Maud Watelet, described the Okra Solar technology as “transformative”.

    “The technology developed by Okra Solar is transformative. We are proud to contribute to facilitating and accelerating the development of micro- and mini-grids for rural electrification across Nigeria. Given the various awards received by Okra, we are confident that the highly skilled Okra Team will thrive within this complex industry,” said Watelet.

    “Even with off-grid solutions like mesh-grids being 10 times cheaper than grid extension for hard-to-reach communities, 80 million people continue to live off-grid in Nigeria. Okra is incredibly excited to work with EDFI ElectriFI to deploy innovative financial tools that will enable local developers to deploy mesh-grids at scale and continue rapidly bringing power to the people,” said Afnan Hannan, co-founder and CEO of Okra Solar.

    About Okra Solar

    Okra Solar is a plug & play hardware + software solution that allows smart pay-as-you-go mesh-grids to be created by connecting existing off the shelf solar panels and batteries.

    Okra mesh-grid design allows for grids to start small, with more panels and batteries able to be added to the grid to increase capacity as demand increases. Remote monitoring keeps grid operators informed so they can eliminate blackouts.

    Bridging the financial gap

    ElectriFI’s investment consists of a revolving working capital facility designed to bridge the financing gap in the supply chain and help Okra leverage the high demand for their technology, penetrate the Nigerian market further and eventually speed up sustainable electrification.

    The ElectriFI Country Window for Nigeria is developed in partnership with EU Delegations and host governments.

    “The European Union’s support to Okra through the ElectriFI Nigeria Country Window assists the country’s efforts in accelerating energy access to people in underserved and unserved communities.

    “As such, it is at the heart of our partnership with Nigeria, which among others, aims at improving reliable energy access to seize the environmental, social and economic potential of renewable energy,” explained the head of Green and Digital Economy at the Delegation of the European Union to the Federal Republic of Nigeria & ECOWAS, Inga Stefanowicz.

    Solar Pay-go Scaleups Get Large Share Of Debt Financing

    About EDFI ElectriFI

    EDFI ElectriFI is an EU-funded impact investment facility financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets.

    EDFI ElectriFI is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs).

  • Egypt’s KarmSolar secures $3m in debt funding

    Egypt’s KarmSolar secures $3m in debt funding

    Egypt-based solar power developer and electricity distributor, KarmSolar, has secured EGP83 million (approximately $3 million) in debt funding to support the further development and rollout of Farafra Solar Grid, the company’s second micro-grid-solution, which will cover one hundred percent of clients’ load. 

    KarmSolar’s overarching mission is to serve as a driving force behind the expansion of the private solar energy market in Egypt. To this end, the company plans to introduce novel and comprehensive solutions to the industrial, agricultural, commercial, and tourism markets.

    Read also: KarmSolar Launches a New Minority Stake Round

    What KarmSolar Aims For With This Development

    The Farafra Solar Grid is a first-of-its-kind microgrid solution that utilises solar PV panels, a battery storage system, and diesel generators in a centralised setup, operating under a usufruct agreement and then distributing the generated electricity to the various off-takers. Its goal is to become fully operational by the third quarter of 2023.

    In the first phase of the Farafra Solar Grid, KarmSolar’s SPV, Mars for Selling and Distributing Electricity, will create a solar photovoltaic (PV) station with a capacity of 3.4 megawatts peak (MWp), diesel generators with 3.7 MVA, and a solar battery storage system with a capacity of 4 MWh/1MW. 

    The project will make it possible to utilise solar energy to the extent of around 60%, with the goal of utilising it to the extent of 100% during the next three years. This will result in a reduction of approximately 5,200 tonnes of CO2 emissions annually.

    Through the assistance of Ezdaher Financial Consultancy, the solar grid project was able to secure debt financing from HSBC in the amount of EGP83 million, which is equivalent to $3 million USD.

    According to Ahmed Zahran, co-founder and CEO of KarmSolar, the launch of the Farafra Solar Grid paves the way for the management of KarmSolar to realise their objective of bringing reasonably priced and dependable solar energy to regions of the country that are somewhat difficult to access. 

    He also finds it quite pleasant to see organisations like HSBC willing to focus their efforts and trust towards investing in nonconventional projects like the Farafra Solar Grid.

    “The kickoff of the Farafra Solar Grid enables us to achieve our vision of extending affordable, reliable solar energy to relatively inaccessible parts of the country. It is very refreshing to see institutions like HSBC willing to focus their efforts and trust towards investing in nonconventional projects like the Farafra Solar Grid,” he said

    According to Yasmin Farid, head of small and medium enterprises and business banking at HSBC Bank Egypt, “HSBC is committed to supporting and financing the transition to secure a net zero future by helping our clients access sustainable and innovative finance solutions across all business sectors so they can make the investments needed to achieve their net zero goals.”

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    A Previous Fund KarmSolar Acquired

    KarmSolar is now in the process of securing this $3 million debt fund After successfully receiving $2 million in finance for electricity storage at the Cairo 3A poultry farm approximately two months ago. At the time of the previous find, there was already a solar photovoltaic plant in operation there by the corporation.

    A commercial bank called QNB Alahli, which is a subsidiary of Qatar National Bank, provided the funding for the project (QNB), the previous fund. This was a part of a transaction that the Egyptian company Ezdaher Financial Advisory advised on. 

    KarmSolar planned to use the funds from the loan to instal an electricity storage system as part of the second phase of a solar farm that the company is constructing as part of an effort to provide power to the Cairo 3A Poultry Farm, which is situated in the Bahareya oasis in the Giza governorate of Egypt.

    The farm will be powered by solar energy, and KarmSolar is committed to providing 100 MWp of that electricity. The firm has already erected a solar farm in the region, which is equipped with a storage system with a capacity of 1 MW/3.957 MWh. 

    KarmSolar is committed to supplying the citizens of Egypt with solar energy, and the funds enable them to attain their goals.

  • Solar Pay-go Scaleups Get Large Share Of Debt Financing

    Solar Pay-go Scaleups Get Large Share Of Debt Financing

    Off-grid solar startup companies in Africa have received more than $2.3 billion in funding over the past 10 years. This is according to the recently issued biennial Gogla-World Bank report, which stated that the majority of the funding has, however, gone to just seven pay-as-you-go (pay-go) scaleups based in Africa, leaving hundreds of others in the early stages unable to raise money.

    According to the Gogla Investment database, the seven most backed solar startups are Sun King, Zola Electric, M-Kopa, Bboxx, d.light, Engie Energy Access, and Lumos. These companies have received a little over 70% of the sector’s equity, debt, and grant financing, while over 150 startups in the seed and startup phases have received the remaining funds.

    Scaleups received investments totalling $600 million in equity funding between 2015 and i021, while early-stage businesses attracted $255 million in VC funding during the same period

    Overall, most early-stage startups in Africa have had difficulty obtaining loans, especially after the COVIID pandemic, although scaleups have been able to do so while still operating in a challenging market.

    Read also: Kowry Energy Announces Solar Power Projects in Nigeria, Senegal, and Mali

    How Scaleups Are Able To Succeed

    The aforementioned scaleups use asset-based finance (pay-to-own) pay-as-you-go methods for solar kits and lanterns, which are enormously popular in Sub-Saharan Africa, where millions of people are off the grid, and national electricity systems are still in the early stages of development.

    Due to a lack of funding, early-stage startups are unable to purchase the solar kits and lanterns they need to expand and win over more customers and markets. Some of their important African markets include Ghana, Kenya, Uganda, Nigeria, Rwanda, and the DRC.

    “Startup companies report that accessing equity capital has been challenging, resulting in some being overleveraged and others facing business difficulties. Lack of early-stage equity has resulted in the stifled growth of many companies,” said Gogla, a global association for the off-grid solar energy industry, in the report released a fortnight ago.

    “This is a barrier to the expansion of off-grid solar in new markets; as equity, grants, or output-based incentives, such as results-based financing, are generally best-placed instruments for market expansion,” said the report.

    Why This Trend May Continue

    The pattern is likely to persist because, so far in 2022, several of the seven scaleups have raised the majority of the capital raised by the off-grid solar pay-go companies, according to statistics on disclosed agreements from the Big Deal database.

    According to an analysis of the data, roughly 30 startups and scaleups have attracted millions in debt-equity fundraising so far in 2022. Of the total, 11 firms raised $367 million in equity capital, including SunKing, M-Kopa, and d.light, which accounted for 93% of the total equity amount.

    The four scaleups currently account for 86% of the total debt-equity capital raised by companies in Africa’s pay-go solar sector when adding the $50 million in debt funding from D. Light and the $35.5 million in debt funding from Bboxx.

    Due to their ability to seize huge markets throughout Africa and by using syndicated loans, these businesses can acquire capital. These businesses, some of which provide finance for other assets, have also been quick to develop new revenue streams, tapping into and growing their clientele.