ElectriFI

The Electrification Financing Initiative (ElectriFI) is an EU initiative that will support electrification investments that will lead to new and improved connections, with strong features for scalability. ElectriFI will be flexible in allowing the support of different business models, utilities and mini-grids.

The specific objectives are to:
  1. achieve intensive mobilisation of the private sector
  2. in the business of increasing or improving access to modern, affordable and sustainable energy services
  3. for populations living principally in rural, underserved areas as well as areas affected by unreliable power supply
  4. encourage more actions in the field of renewable energy in general with emphasis on decentralised sustainable energy solutions and
  5. with potential to attract additional financing to ElectriFI clients.

Whom does ElectriFI address?

The main actor to be targeted is the private sector. Public institutions, including Local Authorities, may nevertheless equally benefit under the same market based conditions, considering the needs and opportunities in each targeted country/region. The involvement of partners from local private sector and Civil Society Organisations will be instrumental to enhancing effectiveness and ownership of the actions deployed.

Who are the ElectriFI Partners?

ElectriFI will provide a flexible and inclusive structure, allowing for the participation of different partners who, depending on their objectives and priorities, may join the initiative at different levels and under different roles, with the aim of maximising the benefit of their contribution to the objectives of ElectriFI.

What are the targeted projects?

ElectriFI will support renewable energy investments, with a focus on rural electrification, of a total budget above EUR 0.5 million. At early project stages or during the pilot phase, own capital is expected to be in the scale of 50%. At later project stages and in view of scaling up, own capital is expected to be in the scale of 15% with a senior debt financing at the scale of 60%. The maximum term of funding will be 7 years. The maximum amount of any financing solution provided by ElectriFI will be EUR 5.0 million (or local currency equivalent). ElectriFI funding may not exceed 50% of total amount of equity.

European Union
European Financing Partners Institution
ElectriFI

ElectriFI

A major barrier to investments in access to energy in developing countries is the lack of access to seed, mid- and long-term capital matching business cycles. In immature market conditions this is aggravated by the reluctance of commercial banks to provide suitable lending conditions that respond to the needs of investors and by the existing capacity limitations in terms of structuring and bringing projects to financial close.

Photo credits:
© Dominic Sansoni
The Problem
A support scheme that bridges the gaps in structuring and financing is therefore necessary to stimulate the private sector, mobilise financiers, including the local banking sector, and have a catalytic impact on economic growth.

Photo credits:
© Jens Steingasser
The Dilema
ElectriFI can play this role and boost investments by making support available throughout the entire process, from the project idea to its successful implementation and scaling up.

Photo credits:
© KfW Photo Archive
The Solution
ElectriFI will constitute a comprehensive and inclusive platform for investment support services, rendering due attention to bankability at very early stages, whilst facilitating access to senior debt at later stages.

Photo credits:
© Rudiger Nehmzow
ElectriFI

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