What we do

What we do

Mission

A major barrier to investments in access to energy in developing countries is the lack of access to seed, mid- and long-term capital. ElectriFI was created as a financing scheme to bridge the gaps in structuring and financing, stimulate the private sector, and mobilise financiers.

ElectriFI’s mission is to grow viable businesses and projects that create new connections to reliable and sustainable energy in emerging and developing countries.

The focus is on addressing the energy needs of populations living principally in rural, underserved areas and areas affected by unreliable power supply. ElectriFI encourages the adoption of renewable energy, with an emphasis on decentralized energy solutions.

Target investments

ElectriFI can provide funding and support to developers/investors across a range of business models. This includes not only projects with one off-taker benefiting from contractually-based revenue streams, but also businesses that are exposed to full market forces of supply and demand.  Where innovative business models are proposed, replicability and scalability will be important considerations.

Investment criteria

ElectriFI provides financial support primarily through risk capital.

ElectriFI encourages the adoption of renewable energy, with a particular emphasis on decentralised energy solutions by providing interim financing solutions to help projects overcome obstacles or otherwise reach a sufficiently mature stage that could attract private financiers:

  • ElectriFI does not compete with other financiers but seeks collaboration and additionality to other funders.
  • ElectriFI financing leads to increased end-user access to reliable sustainable energy.
  • ElectriFI invests in companies with positive financial outlook.

ElectriFI supplies either development finance, debt, quasi-equity, equity and guarantees. The maximum amount of any financing solution is EUR 10 million (or local currency equivalent).  ElectriFI is flexible in structuring its financing instruments and repayments, in order to match expected cash flows of the project.

ElectriFI does not provide grant funding, concessional loans or other low-cost capital.  

Please check the Quick Scan for more information on ElectriFI’s investment criteria.

Additionality to other investors

ElectriFI can play this role of catalysing other investments by investing in riskier projects, taking riskier positions in the capital structure and/or offering more flexible repayment terms than other investors.

ElectriFI assumes a significant level of risk, but seeks alignment with other investors and expects a commensurate return.

Partners

ElectriFI is funded by the European Commission and Power Africa with an initial amount of EUR 115 million.