EIB Agrees to Provide a $25 Million Loan to Strengthen Energy Access in Africa
The loan is being provided to a low-cost solar installer that plans to install off-grid solar systems in Ethiopia, Kenya, Nigeria, Tanzania, and Uganda
The European Investment Bank (EIB) has announced plans to provide $25 million in financing to low-cost solar power provider D.light design to strengthen energy access in Africa through the installation of solar kits that do not require grid connectivity.
The financing is aimed at alleviating power issues in sub-Saharan Africa. The solar kits are easy-to-use and inexpensive for users, and can be utilized through a pre-payment system.
The financing will be used to assist D.light design in the installation of a variety of solar kits in sub-Saharan Africa. The solar kits will include not only panels and lamps but also low-energy equipment such as radios and televisions. D.light aims to install 10 million solar kits within five years.
The installation of the off-grid solar systems is initially slated to take place in Ethiopia, Kenya, Nigeria, Tanzania, and Uganda.
“I am delighted that the EIB has signed this new financing with D.light in Africa for an off-grid solar project that will have a major economic and social impact on people and micro-entrepreneurs,” EIB Vice President, Ambroise Fayolle said in a media statement.
“The EU bank is determined to implement the Paris climate agreement and to cooperate to achieve the sustainable development goals, particularly when it comes to ensuring access to affordable, reliable, and sustainable energy for all. With its unique technical and financial expertise in the support of solar projects, the EIB will mobilize new investments to develop renewable energies in Africa,” added Fayolle.
The EIB is focused on improving the living conditions of people in poor and developing countries. To that end, EIB and the Indian Renewable Energy Development Agency (IREDA) recently inked an agreement worth €150 million (~$184.81 million) to further the growth of renewable energy generation in India.
Previously, Mercom also reported that YES Bank, one of the largest private sector banks in India, was collaborating with EIB to formulate a renewable energy financing program for India.
Image credit: D.light design
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.