The Beyond the Grid Fund for Africa announces upcoming funding round for mini-grid energy service providers in Mozambique

The Beyond the Grid Fund for Africa announces upcoming funding round for mini-grid energy service providers in Mozambique

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The Beyond the Grid Fund for Africa (BGFA) will re-open the funding round in Mozambique in June. This is a re-launch of BGFA’s second Call for Proposals (BGFA2) to incentivise clean-energy-based mini-grid solutions in Mozambique, which was initially launched in 2021 but paused pending publication of off-grid policy and related detailed regulations on concessions, tariffs and other regulatory matters.

The Call for Proposals in Mozambique aims to incentivise off-grid energy service companies to scale up their innovative sustainable businesses and thereby accelerate access to affordable and clean off-grid energy for customers in peri-urban and rural areas of Mozambique at specified sites agreed by the regulatory authorities in Mozambique. The Mozambique country programme, funded by Sweden, has been developed in collaboration with the Mozambican Energy Fund (FUNAE), and the Energy Regulatory Authority (ARENE).

Experienced applicants deploying and operating mini-grids are encouraged to apply for funding for the implementation of projects in Mozambique to provide energy services at specified sites. Funding can be used for both the deployment and operation of energy services through mini-grids as well as through standalone solar home solutions. Standalone solutions can only be offered as a complementary solution to mini-grid-based solutions for customers that will not be connected to the mini-grid(s) at the specified sites. Projects proposing the deployment of exclusively standalone solutions are not eligible for BGFA2 funding.

“We are pleased to re-launch our funding round in Mozambique. We invite both previously pre-qualified companies and new entrants to the market working with mini-grids and solar home systems to apply for results-based financing and hope that BGFA2 can provide a testing ground for the new regulatory regime,” comments Kari Hämekoski, Senior Programme Manager at Nefco.

In line with its latest call in Uganda (BGFA5), the call in Mozambique (BGFA2) will employ a simplified application process. The financial model will be requested for submission after publication of the detailed regulations by the government of Mozambique. Companies that were pre-qualified in 2021 can also choose to submit an updated application.

The Call for Proposals, expected to open during May 2023, invites private sector companies, i.e. energy service providers in the off-grid sector, to apply for financing through an online application process. Further information, incl. indicative ticket size and selection criteria and guidelines, will be made available on the BGFA website when the funding round opens.

Update 31 May: The launch of the Call has been moved forward and will open during June 2023.

For further information, please contact:

Kari Hämekoski, Senior Programme Manager at Nefco, +35810 618 0660

Aleksandra Reskalenko, Programme Officer, +358106180490

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. Sweden contributes SEK 830 million from the Swedish embassies in all BGFA project countries. Denmark contributes DKK 117.5 million through the Ministry of Foreign Affairs to support the programme in Uganda. Germany provides EUR 7.5 million through its development bank KfW to support the BGFA country programme in Zambia. Norway contributes NOK 200 million through the Norwegian Agency for Development Cooperation Norad. Power Africa, an initiative administered by USAID, is providing an in-kind technical assistance contribution worth USD 4.5 million.

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