Redavia, a supplier of solar photovoltaic systems, has just taken out the first catalytic EEP (early-stage grant) from the Nordic Development Fund (NDF), a development financial institution common to the five Nordic countries. It is a EUR 1.5 million financing from the EEP Africa (Energy and Environment Partnership Trust Fund) window, a clean energy financing facility hosted and managed by the NDF. The financing will support the extension of Redavia's commercial and industrial "solar energy leasing" model to SMEs in Ghana and Kenya.
The first EEP catalytic loan from the Nordic Development Fund (NDF), a development finance institution common to the five Nordic countries (Denmark, Finland, Iceland, Norway, Sweden and Finland), is for Redavia. The agreement between the solar PV system supplier and the NDF was signed on June 18, 2020, just one year after the launch of the ESP catalyst window (in 2019) by the financial institution. The window was launched as a pilot project to provide follow-on debt financing to “promising” companies from a portfolio of Enterprise Savings Plan innovation grants.
The loan represents a financial commitment of EUR 1.5 million. The loan financing comes from the ESP Africa window, a clean energy financing facility hosted and managed by the Nordic Development Fund (NDF) with funding from Austria, Finland and the NDF. The funds will be used to expand Redavia’s commercial and industrial ‘solar energy leasing’ model to small and medium sized enterprises (SMEs) in Ghana and Kenya by providing them with ‘affordable clean energy to create local wealth and increase employment in a sustainable manner’, says Erwin Spolders, CEO of Redavia.
Redavia’s “Solar Energy Leasing”: How does it work?
Redavia’s commercial and industrial “solar energy leasing” model is based on the principle that the supplier installs solar power plants on the premises of Ghanaian and Kenyan SMEs at its “own expense”. In this case, the SMEs are considered as “tenants” of the solar PV systems and thus pay Redavia a monthly maintenance fee.
In addition to the extension of Redavia’s “solar energy leasing” in Ghana and Kenya, NDF’s EEP catalyst loan will contribute to the creation of green jobs and green growth through the installation of 1.26 MWp and the production of 1700 MWh/year of clean energy. According to Charles Wetherill, Fund Manager, EEP Africa, NDF, the loan financing will also help develop solar farm installations in Ghana and Kenya. “This is the culmination of a multi-year vision to establish a debt financing window under EEP Africa (Energy and Environment Partnership Trust Fund). We are now able to provide capital more aggressively to meet the growth and evolving needs of portfolio companies,” says Charles Wetherill.