In Kenya, three suppliers of solar energy for productive use will be supported by the Clean Captive Installations for Industrial Clients in Sub-Sahara Africa (CCISA) program. This initiative is implemented by the United Nations Environment Programme (UNEP) to provide clean energy to industrial and commercial (C&I) customers.
As in most African countries, solar energy is gaining momentum in Kenya. The United Nations Environment Programme (UNEP) intends to rely on this clean source to provide electricity to local businesses. It is in this context that the organization has launched a challenge in connection with its Clean Captive Installations for Industrial Clients in Sub-Sahara Africa (CCISA) program. The program has selected three companies specializing in solar energy for productive use.
This is the case of the German company Ecoligo, whose Kenyan subsidiary has committed to set up a special purpose vehicle (SPV) that will finance a portfolio of projects for industrial and commercial clients (C&I). In return, the company will receive a grant from the program (CCISA). Ecoligo’s SPV will be financed through both crowdfunding and secured institutional lenders. The company led by Martin Baart plans to develop medium-sized solar projects (between 500 kWp and 2 MWp), which are typically too small for institutional investors, but too large for individual investors.
Financing solar-powered cold stores
The Kenyan organization Tree Sea.mals will also receive a grant from the CCISA program. The funding is for the establishment of solar-powered cold storage facilities to reduce post-slaughter meat losses. The organization founded by Tracy Kimathi will conduct a pilot project to prove the viability of its business model. This project will also help scale up the franchise models for replication in other countries.
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Nairobi, Kenya-based solar energy provider Ofgen will use the CCISA grant to set up an SPV to raise local currency (Kenyan shilling) for the development of solar power plants for C&I. The expected cumulative capacity of these projects is 14 MWp. Ofgen will offer local currency power purchase agreements (PPAs) for solar hybrid systems to an increased number of commercial and industrial users.
For the record, the CCISA program is implemented by UNEP in partnership with the Frankfurt School-UNEP Collaboration Center for Climate and Sustainable Energy Finance. The program is also supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety.
Jean Marie Takouleu