Inclusive finance for productive use of energy in decentralised energy systems

Private sector decentralised renewable energy (DRE) systems play a crucial role in improving energy access in Africa and the achievement of Sustainable Development Goal 7 (SDG7). Productive uses of energy (PUE) contribute to economic and social development in rural areas as well as to a green energy transition. However, low income levels and the often high costs of decentralised renewable energy services limit their adoption in rural areas. Innovative and inclusive finance solutions are required to improve access to productive equipment and boost their uptake. Microfinance institutions (MFIs) play a crucial role, but their engagement in the renewable energy and energy efficiency sectors has been limited so far due to financial constraints, rigid collateral requirements and lack of knowledge of DRE technologies and business models.

Content of the Workshop:

The Workshop, organised by the Alliance for Rural Electrification (ARE) and ADA, will provide an overview of DRE systems, productive use solutions and existing finance solutions thanks to innovative partnerships between MFIs and the providers of green solutions. The discussions will bring together investors, MFIs and green energy providers to explore what is needed to increase financing for the sector and enhance the impact of improved access to green energy.

The target audience includes MFIs, local commercial banks, FinTech, donors, development finance institutions, renewable energy companies, cooperatives, productive equipment suppliers, agri-business associations, women associations.