12.12.2024 | News
The Beyond the Grid Fund for Africa (BGFA) has signed its 30th project agreement to scale up energy access in Sub-Saharan Africa. The new project will deploy mini-grids in rural communities in Uganda. Access to electricity will improve living conditions, support economic development and help accelerate the green transition in Uganda.
This new BGFA agreement in Uganda has been signed with NOA Energy Services Uganda (NOA Uganda) to develop new mini-grids on Bunjako Island. In total, up to EUR 2.3 million in results-based financing will be provided by BGFA. It is expected that this will mobilise at least EUR 2.3 million in additional co-financing over the coming four-year implementation period.
“Signing our 30th portfolio company is an important milestone for the programme, which has a technologically and geographically diverse portfolio. NOA Uganda combines mini-grid deployment with productive use of energy (PUE) elements. Our experience shows that mini-grids serving rural and hard-to-reach customers require subsidies and PUE to become economically sustainable, and we see that mini-grid developers are increasingly incorporating PUE into their business models,” comments Ash Sharma, Vice President for Special Funds at Nefco.
NOA Energy Services Uganda is a mini-grid developer that has been active in Uganda since 2018. In Northern Uganda, the company has worked with national authorities to electrify 25 villages in Lamwo and also currently operates four mini-grids in the Bunjako area, south of Kampala, where new mini-grids will be constructed with support from BGFA. Today, NOA Uganda is owned by the French company NEOT Offgrid Africa, an investment platform designed to support Africa’s energy transition owned by two impact funds.
“Collaboration between all stakeholders is key to accelerating rural electrification in Uganda. We are grateful for the financial support from the Beyond the Grid Fund for Africa, which will enable us to scale up our business operations and establish further energy connections in rural communities, serving the people who need access to electricity the most,”says Alex Wanume, Country Director at NOA Energy Services Uganda.
With the results-based financing from BGFA, the company aims to install 3,300 energy service subscriptions by constructing and deploying eight containerised solar mini-grids on Bunjako Island, in the Mpigi district. The implemented project is expected to have a total solar PV installed capacity of 1,030 kWp, with combined lithium-based storage of 1,999 kWh. In addition to supporting electricity access for the communities, NOA Uganda will provide electric pressure cookers, refrigerators and PUE appliances to its customers.
“We are very excited to sign our 9th project in Uganda to support the scale-up of electricity access in rural areas in the country. Once established, the mini-grids, will significantly improve the lives of the people living in the communities by providing access to electricity, facilitating, for example, improved health care and supporting economic growth in the areas in which they are deployed,” says Tina Möller, Programme Manager at Nefco.
In total, the Beyond the Grid Fund for Africa has now contracted 30 companies in Sub-Saharan Africa, across Burkina Faso, DRC, Liberia, Uganda and Zambia. Once implemented, the current programme portfolio will have the potential to reach over 8.7 million people across these six countries. The BGFA funding window in Uganda is funded by Denmark and Sweden. Norway will also contribute to the implementation of this project.
For further information, please contact:
Tina Möller, Programme Manager at Nefco
tina.moller@nefco.int, +358 10 6180 651
Alex Wanume, Country Director at Noa Uganda
Alex.Wanume@noauganda.com, +256 78 8882 850
About NOA Energy Services Uganda
NOA Uganda is an off-grid renewable energy developer, technology designer and integrator. The company focus on renewable energy and energy-efficiency projects in Sub-Saharan Africa. In Uganda, they have two key projects in full operation, providing power to over 30,000 people in rural Uganda. NOA Uganda’s current pipeline provides over 10,000 connections, benefiting over 100,000 people. Read more at www.noauganda.com
About BGFA
The Beyond the Grid Fund for Africa (BGFA) is a multi-donor facility established and managed by Nefco – the Nordic Green Bank. Nefco is an international financial institution based in Helsinki, Finland, focusing on environmental and climate investments and fund management. BGFA is implemented by Nefco, with the support of two project implementation partners. NIRAS is a development and engineering consultancy company headquartered in Denmark. The Renewable Energy and Energy Efficiency Partnership (REEEP), an international multilateral partnership based in Vienna, Austria, works to accelerate market-based deployment of renewable energy and energy-efficiency solutions in developing countries.
The current EUR 126 million BGFA programme was established in 2019 on Sweden’s initiative through the Swedish International Development Cooperation Agency (Sida). It has since been developed by Nefco into a multi-donor programme funded by Denmark through the Ministry of Foreign Affairs, Germany through its development bank KfW, Norway through the Norwegian Agency for Development Cooperation Norad and Sweden. Power Africa, an initiative administered by USAID, is providing an in-kind technical assistance contribution. Read more at www.beyondthegrid.africa
Photo: Mini-grid in operation in Pangira, Uganda. – NOA Energy Services Uganda