U.S. International Development Finance Corporation (“DFC”) is launching a Call for Applications from private sector entities seeking support for distributed renewable energy (DRE)-related investments in DFC-eligible emerging market countries via equity financing, debt financing, political risk insurance, feasibility studies, technical assistance, and related DFC products.
The Call is one of the new climate and climate-focused investment initiatives the agency is pursuing to help developing countries reduce emissions, increase renewable energy usage, protect ecosystems, and enhance resilience. This Call also seeks to advance DFC’s recently announced collaborations with the Rockefeller Foundation and the Shell Foundation to de-risk DFC investments in DRE projects.
DFC’s focus in the renewable energy sector is to help vulnerable populations, particularly those in low-income and middle-income countries, to attain a prosperous future by developing robust, sustainable renewable energy and electricity access systems led by private investors. DFC seeks to finance economically sustainable DRE projects, including but not limited to micro and minigrids, solar home systems, and distributed power generation.
DFC is participating in Rockefeller’s Green & Equitable Recovery Call to Action, which aims “to promote the development of DRE infrastructure projects that quickly, sustainably and cost-effectively end energy poverty, while at the same time supporting an equitable global recovery that prioritizes economic growth, human development and environmental sustainability.”
Applicants should be seeking DFC support for private sector-led investments that support the DRE sector, including, but not limited to:
- Mini-grid or micro-grid deployment
- Grid-connected local generation and storage
- Renewable power solutions for commercial and industrial use
- Battery storage and productive use (e.g., battery swapping platforms)
- Solar home systems
- Private electricity distribution networks that are powered primarily by renewable energy
- Power distribution companies (or subsidiaries of power distribution companies) that focus on rural, or last-mile electricity access
- Debt funds with DRE-focused downstream borrowers
- Priority will be given to those projects that provide individuals, businesses, or public institutions with the highest levels of electricity access, as defined by the World Bank’s Matrix for Measuring Access to Levels of Electricity.
- Priority will be given to projects that provide energy solutions related to the COVID response, such as those projects that will provide needed electricity to healthcare facilities.
- DFC welcomes opportunities to provide financing to locally owned and operated companies.
- Additional consideration will be given to proposed investments that support DFC’s development strategy Roadmap for Impact, which prioritizes investment in projects in the infrastructure and technology, healthcare, water & sanitation, financial inclusion, and energy sectors. In addition, DFC will look to prioritize projects that advance other USG government priorities, including to enhance two-way trade and investment between the U.S. and Africa as envisioned by the U.S. Government’s Prosper Africa initiative; investments that support women through the DFC’s 2X Women’s Initiative; investments that support underserved3 and disadvantaged4 populations; and investments that complement other U.S. Government global renewable energy programs such as Power Africa.
- Proposed opportunities and target countries should be described in the applicant’s submission.
- The investment thesis should reflect the management team’s prior experience and track record of impact and financial performance.
- DFC is targeting individual investments of at least $3 million.
- Applicants must be privately owned and managed entities.
- DFC does not offer stand-alone technical assistance or feasibility study grant funding. Any application for technical assistance or feasibility study support must be for a project that may receive, or has received, DFC financing, equity investment or insurance.
For more information, visit https://kz.usembassy.gov/distributed-renewable-energy-call-for-applications/