Quickscan

Quickscan

Below you will find the key eligibility criteria that can help you establish whether ElectriFI financing might be suitable for your project / business. This is not an application form but intended for you to establish whether your business plan is complying with ElectriFI’s eligibility criteria.

 

1Eligible applicants: The main actors to be targeted are the entrepreneurs from the private sector. Companies that are partly publicly owned can apply.
2Sponsor’s equity: ElectriFI will only invest in businesses / projects where the main sponsors invest in themselves. Applicants must provide a clear and detailed breakdown of their current and foreseen equity positions. ElectriFI shall understand the sponsor’s cash equity contribution in the project (vs. sweat equity and converted grants).
3Track-record: Sponsors / entrepreneurs must be able to clearly define the project, show how it will contribute to increased end-user access to electricity and provide a convincing business case for financial sustainability. Applicants must have a credible professional track record, demonstrated strong commitment to date, and a capacity to deliver.
4Impact: Projects must create a minimum of 1,000 new electricity connections. Preference is given to rural areas.
5Geographical coverage: The project host country must be included in our Country List.
6Sector: Even though ElectriFI’s mandate covers on-grid and off-grid solutions, however, off-grid solutions will obtain higher scores since direct new connections are an important selection criterion.
7Technology: All renewable technologies (excluding first generation biofuels) are eligible. Combining renewable with conventional generation can be considered in exceptional cases if indispensable for the stability of the system.
8Viability: Projects / entities must be capable of attaining financial sustainability in the mid-term (i.e. ultimately able to generate sufficient revenues to support debt service and provide adequate returns to investors under reasonably adverse variations in underlying assumptions). Financial viability must be demonstrated. You will have to attach a relevant financial model and/or audited financials to your application when a Call for Investment Proposals is open.
9Type of financial instrument: ElectriFI does not provide grant funding. ElectriFI will be able to provide financial support primarily through risk capital, either to corporate entities or alternatively to project special purpose vehicles. The maximum term of funding will be 7 years. The maximum amount of any financing solution provided by ElectriFI will be EUR 10 million (or local currency equivalent) – minimum will be EUR 0,5 million. ElectriFI funding may not exceed 50% of total amount of equity nor 50% of total project costs. Electrifi is able to be flexible in structuring its financing instruments and repayments, in order to match expected cash flows of the project. Notwithstanding this flexibility in repayments, ElectriFI will always seek appropriate risk-return on its investments. There is a wide range of financial instruments available; equity, mezzanine, debt, guarantees.
10Pricing and Returns: ElectriFI will not support projects that are not financially sustainable (e.g. by subsidising electricity tariffs), nor will it artificially enhance shareholder returns (e.g. by subsidising interest rates).
11Sustainability: Sustainable environmental and social business practices are essential and at the heart of ElectriFI’s investment strategy. Any applicant shall (be ready to) comply with international best practices. ElectriFI applies a zero-tolerance policy toward investment prospects not implementing environmental and social best practices.
12Leverage: The amount of other sources of funding (from venture capital, business angels, local banks, DFIs, etc.) the project is able to attract thanks to ElectriFI’s investment should be clearly demonstrated.
13Additionality: Projects which are financially very strong from the beginning and for which alternative sources of funding are available (local banks, DFIs, etc.) will not qualify for ElectriFI funding.
14Active development stage: As shown in the diagram below, projects must at least have reached an active level of development, meaning that market analysis and validation are finalised, pilot (if applicable) has been undertaken, land is secured, resource data are acquired, feasibility study and environmental impact assessment are completed, and a formal understanding with authorities is reached.

15ElectriFI can invest across a range of business models, technologies and geographies. An important consideration is replicability and scalability of the model.
16ESG topics:  Environmental, Social and Corporate Governance topics are very important. The investment should comply with all regular international (often World Bank/IFC Performance Standards) guidelines on environmental issues, social aspects, and corporate governance.