Results area 3
Access to and production of clean energy
Photo: PowerLive
Making clean energy more accessible and affordable
In 2022, NDF continued financing projects and directing investments towards increasing access to and production of affordable and sustainable clean energy.
NDF’s contribution helped to facilitate more than 6 million clean energy connections, the majority of which was solar, benefitting close to 34 million women and men. Further, NDF’s support contributed to job creation, mobilising climate finance and increasingly empowering women in what has traditionally been a male-dominated industry. The support contributed to over 7 million tons of reduced, avoided or removed carbon emissions.
In this section we highlight public-private partnerships for solar-powered refrigeration in Kenya, electrification in Tanzania and powering smallholder farmers in Sub Saharan Africa.
Contribution to the SDGs:
Empowering zero food loss (SokoFresh)
Reducing food waste to help farmers and the environment
The UN’s Food and Agriculture Organization estimates one third of all food is wasted. Not only can this contribute to human malnutrition, all the resources which went into producing and transporting that food are also wasted. Refrigeration is a simple way to reduce food waste, but this isn’t available for many rural, developing areas without access to safe and reliable electricity.
SokoFresh, a Kenyan social enterprise, developed a plan focused on smallholder avocado farmers involving refrigeration, processing facilities and market access. They received financing from the Energy and Environment Partnership Trust Fund (EEP Africa), an NDF-managed financing facility for early-stage clean energy projects.
“SokoFresh uses solar-powered refrigeration units,” explains Faith Chege, EEP Africa Portfolio Manager. “The unique business model aspect is that the cold storage units are mobile, therefore they are relocated to different regions based on produce seasonality. This increases the utilisation of the asset.”
They also provide solar-powered avocado oil presses, so smallholder farmers have the option to produce oil from lower quality avocados which might not sell in a grocery store.
“Previously smallholder farmers had no access to the market,” Chege continues. “They sold their produce to a broker who got most of the profit. Now they have access to offtakers in large cities like Nairobi, as well as export markets.”
Over 8,000 farmers participated in SokoFresh’s pilot project, enjoying a significant drop in food waste and jump in income. Farmer income increased by 20% on average. “Now with the increased income they can afford school fees for their kids,” says Chege.
SokoFresh has created 821 jobs, of which 65 are for women and raised 2.5 EUR million in equity, debt, and grant funding to scale up.
Over 8,000 avocado farmers participated in SokoFresh’s pilot project, enjoying a significant drop in food waste and jump in income. Photo: SokoFresh
Over 8,000 farmers participated in SokoFresh’s pilot project, enjoying a significant drop in food waste and jump in income. Farmer income increased by 20% on average. “Now with the increased income they can afford school fees for their kids,” says Faith Chege.
NDF CO-FINANCING
EUR 457,676
PROJECT PERIOD
2021-2022
PARTNER AGENCY
EEP Africa Trust Fund (with funding from Austria, Denmark, Finland, Iceland, NDF, and Switzerland)
OTHER PARTNERS
Enviu, EcoZen, One Acre Fund, World Food Programme
MAIN RESULTS
- 6 solar PV cold storage units in six regions and 4 oil press machines installed
- 6,000 farmers with improved livelihoods
- USD 2.5 million additional funding mobilised
Sustainable Energy Fund for Africa (SEFA)
Electrifying rural areas in Tanzania
“Electrification is a precondition to sustainable development,” explains Leo Schiefermüller, Managing Director of Terra Projects Renewable Energy. “We need electricity not just for households, but for businesses, schools and health centres.”
Electrification has been slow around the rural shores and islands of the Great Lakes of Africa. To help meet this need NDF provided funding to the Sustainable Energy Fund for Africa, SEFA, which is administered by the African Development Bank. SEFA made a project preparation grant to JUMEME Rural Power Supply, a Tanzanian off-grid solar developer, to identify and develop minigrids.
The grant helped with early-stage activities, such as identifying villages, GPS and customer tagging, site sizing and distribution network design. It also contributed to developing a monitoring and evaluation system, and legal and financial support to source financing.
“JUMEME developed 23 minigrids around the islands and shores of Lakes Victoria and Tanganyika,” Schiefermüller continues. “We didn’t just bring electricity, but other incentives to help sustainable development. For example, we provided financing so millers could replace their old diesel engine with an electric engine in their mills.”
Another project supported women entrepreneurs and provided clean energy to ten healthcare facilities in the Lake Victoria Islands during the pandemic.
“SEFA was instrumental in helping us to scale the project,” says Schiefermüller. “Unfortunately, the regulatory framework changed and now we are required to sell electricity below cost so we’ve had to reduce the energy services offered to our customers. It’s important to maintain an economic and legal climate that encourages private sector involvement in projects like this.”
Electrification has been slow around the rural shores and islands of the Great Lakes of Africa. SEFA has facilitated incentives to help sustainable development in the region. Photo: African Development Bank
One of the projects supported women entrepreneurs and provided clean energy to ten healthcare facilities in the Lake Victoria Islands during the pandemic.
NDF CO-FINANCING
EUR 10 million
PROJECT PERIOD
2020-2030
PARTNER AGENCY
African Development Bank
OTHER PARTNERS
Denmark, the United States, United Kingdom, Italy, Norway, Spain, Sweden, Germany, and the Global Energy Alliance for People and Planet
MAIN RESULTS
- USD 649 million of additional investments mobilised
- 183,919 clean energy connections delivered
- 617,000 tCO2eq/year reduced
Energy Entrepreneurs Growth Fund (EEGF)
Solar irrigation increases crop yields in Kenya
In Sub Saharan Africa, one roundtrip to collect water takes 33 minutes, on average, according to UNICEF. This task falls disproportionately on women and particularly girls, who have to spend time fetching water instead of studying or playing. Lucy Jong’a knows how hard it is on them, and how much worse it will become as the result of climate change. She is the General Manager of SunCulture, a Kenya-based company which provides solar-powered water pumping and irrigation systems to smallholder farmers.
“The effects of climate change on agriculture are extensive,” Jong’a says. “Some of the more prominent effects include increasingly severe weather events such as flooding and prolonged droughts. Our team works to provide innovative solutions that will empower smallholder farmers and continue to combat the effects of climate change.”
Innovative solutions need financing, which is where the Energy Entrepreneurs Growth Fund (EEGF) helps. EEGF is a blended investment fund, managed by Triple Jump, for early-stage businesses specialising in access to energy in Sub Saharan Africa, especially in rural communities. NDF joined the fund as an investor, helping to provide companies like SunCulture the resources they need to promote sustainable development, climate adaptation and mitigation.
“Our flagship product has delivered significant results for farmers,” Jong’a continues. “With an average increase in crop yields of 2-5 times and income growth of up to 5 times, we have proven the transformative impact of our technology.”
Farmer Josephine Waweru used to hire petrol pumps to pump water from the river, which was expensive and polluting. After getting SunCulture’s solar-powered pump her coffee production has improved and she has diversified her production, such as adding a small fish pond.
Baobab, supported by the EEGF, provides access to solar energy and digital transformation. Photo: TripleJump
“Since I got this pump it has changed my life. I can pump water from my own borehole and things are easier and it is saving me time.” - Josephine Waweru
NDF CO-FINANCING
EUR 10 million
PROJECT PERIOD
2022-2033
PARTNER AGENCY
Triple Jump
OTHER PARTNERS
Shell Foundation, FMO, FinDev Canada
MAIN RESULTS
- USD 110 million additional finance mobilised.
- 1,945,159 people benefitting from climate solutions (50% women).
- 65,348 female borrowers supported from SHS companies.