NOA Uganda Partners with BGFA to Expand Energy Access with New Mini-Grids
Deal News | Dec 12, 2024 | Nordic Environment Finance Cor
The Beyond the Grid Fund for Africa (BGFA) has marked a significant milestone by signing its 30th project agreement, aimed at expanding energy access across Sub-Saharan Africa. The latest project involves the deployment of mini-grids in rural Ugandan communities by NOA Energy Services Uganda. The initiative, funded by a combination of BGFA's EUR 2.3 million in results-based financing and equivalent co-financing, highlights the strategic incorporation of productive use of energy (PUE) elements to ensure economic sustainability. The project, which involves the construction of solar-powered mini-grids on Bunjako Island, aims to provide electricity to underserved communities, enhancing living standards, healthcare, and economic opportunities. The collaboration is supported by a network of international and local stakeholders, underpinning a broader vision to reach over 8.7 million people in six African countries. BGFA, a multi-donor facility managed by Nefco, has established itself as a pivotal player in driving renewable energy investments across underdeveloped regions.
Sectors
- Renewable Energy
- Energy Infrastructure
- Development Finance
Geography
- Uganda – The primary focus of the article is on the electrification projects being implemented in rural communities of Uganda.
- Sub-Saharan Africa – Represents the broader regional context where BGFA operates, aiming to enhance energy access across several countries.
- Finland – The base location of Nefco, the manager of BGFA, which is coordinating the international financing efforts.
Industry
- Renewable Energy – The article discusses the deployment of renewable energy solutions, specifically mini-grid solar systems, to improve electricity access in rural Uganda.
- Energy Infrastructure – Focuses on the development of energy infrastructures, such as mini-grids, crucial for electrification projects in underserved regions.
- Development Finance – Involves financial support mechanisms from organisations like BGFA and donors, facilitating investments in sustainable energy projects.
Financials
- EUR 2.3 million – Results-based financing provided by BGFA for the development of mini-grids in Uganda.
- EUR 2.3 million – Expected co-financing to be mobilised in addition to BGFA's financial input for the project.
- EUR 126 million – Current total funding available through the BGFA programme.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NOA Energy Services Uganda | Mini-Grid Developer | Company | An off-grid renewable energy developer in Uganda, focusing on mini-grid deployment to enhance electricity access. |
| Beyond the Grid Fund for Africa (BGFA) | Funding Provider | Company | A multi-donor fund managed by Nefco, investing in projects to increase energy access in Sub-Saharan Africa. |
| Nefco | Fund Manager | Company | An international financial institution involved in environmental and climate investments, managing BGFA. |
| NEOT Offgrid Africa | Parent Company of NOA Uganda | Company | An investment platform focused on supporting Africa's energy transition. |
| NIRAS | Implementation Partner | Company | A Danish consultancy providing development and engineering support for BGFA projects. |
| Renewable Energy and Energy Efficiency Partnership (REEEP) | Implementation Partner | Company | A partnership focused on accelerating market-based deployment of renewable energy solutions. |