The Nigeria Off-Grid Energy Challenge is a joint initiative of the United States African Development Foundation (USADF) and All On and is designed to achieve the following results:
- To increase electrical generation to unserved and underserved communities through sustainable
- business model solutions;To expand electricity access – delivered through off-grid solutions such as home systems or micro-grids;
- To increase access to electricity for productive and/or household use – while this may include power to meet household consumer needs, emphasis is also given to the delivery of power to productive or commercial activities including agricultural production and processing, commercial enterprises, and others.
- The Off-Grid Energy Challenge is a key element of the Beyond the Grid sub-initiative of Power Africa, a U.S. Government-led partnership launched in 2013 to double access to electricity in sub-Saharan Africa by 2030 by increasing installed power capacity by 30,000 MW and creating 60 million new connections. Of these targeted 60 million new connections, as many as 25-30 million are expected to be added through off-grid solutions.
Eligibility and Criteria
- Projects are to be focused on increasing sustainable energy access, specifically off-grid solutions, and extending the delivery of electrification to unserved and undeserved communities in Nigeria.
- The type of clean energy technologies to be proposed may include, but are not limited to, solar, hydro, wind, biomass, biogas, gas, and hybrid systems.
Winning applicants will receive:
- An investment in the form of a convertible loan at an affordable interest rate and/or an equity investment.
- Seed capital in the form of grant funds.
- Access to intensive local technical assistance and governance support
The following technologies will be considered:
- Productive use: Off-grid energy solutions for mechanization of processes such as grain milling, oil expelling, refrigeration, transport, etc. Solutions are to explain clearly how they will be commercially viable.
- It is expected that use of the power will address a business solution(s) that will generate ongoing revenue and profits to sustain the enterprise. This must be clearly explained in the proposal.
- Mini-/micro-grids:Small-scale power generation systems which provide an alternative to, or an enhancement of, national/regional grid connected electric transmission.
- Products/home systems:Products or systems installed directly in the homes or businesses of off-grid or underserved communities, which supply energy directly to marginalized populations currently (and in the foreseeable future) lacking access to energy.
- Focus must be on distribution systems which are scalable and can be replicated, in addition to being affordable.
- Innovations:Proposals need not necessarily be for power generation only – they may also include provision of innovative metering, payment systems or other enabling technology, especially if they are an innovation in Nigeria. If it is an innovation, then a simple and clear explanation is needed of why the innovation is important and what it will do for the sector or the population.
Awards and Benefits
- USADF and All On are excited to request proposals for the USADF-All On Nigeria Off-Grid Energy Challenge.
- Proposals of up to US$100,000 in 50/50 blended financing (grant/ debt or equity) per award will be considered,
with approximately twenty (20) awards anticipated.
Winning proposals must:
- Further develop, scale up or extend use of proven technologies for off–grid energy in Nigeria.
- Benefit marginalized, or low-income rural or urban populations currently underserved by utility companies, ideally with a focus on benefits to women and girls and communities in the Niger Delta.
- Demonstrate financial sustainability or the potential for financial sustainability. The proposed investment period must include approximately three months of generation of electricity (or generation of energy) and revenue/cash flow from sales.
- Demonstrate a proven track record of experience or have project sponsors or partners with a proven track record of related experience.
- Propose a budget of no more than US$100,000. Proposals with budgets greater than US$100,000 must bring leveraged resources from one or more other sources that meet the total financing requirements. Leveraged funds from other private sector and donor sources are encouraged.
- Demonstrate clearly whether and how many new connections will be added1
, as well as potential for future replication.
- Applications for projects/ businesses leveraging wind, hydro, biomass, and gas as the energy source are greatly encouraged.
How To Apply
To apply please click here