Regional Off-Grid Electricity Access Project

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The objective of the Regional Off-Grid Electrification Project for West Africa is to increase electricity access of households and businesses using modern stand-alone solar systems through a harmonized regional approach. The project has 2 main components. (1) Develop a will transfer and share knowledge of technological innovations and new business models across the region, in a harmonized manner, which will serve to improve the enabling environment for stand-alone SHS in the region. Entrepreneurship Technical Support subcomponent will provide differentiated support to entrepreneurial businesses across the enterprise development life cycle (start-up, early stage, growth, and maturity). The technical support will seek to enhance the capacity, skills, and expertise of eligible businesses. This subcomponent will also remove information and knowledge barriers to attract new players to the stand-alone solar system market. Entrepreneurship Financial Support subcomponent will support entry of new solar businesses. Barrier Removal for Challenging Markets subcomponent will set targeted financial incentives to entrepreneurs and businesses operating in challenging markets, such as countries in the Sahel region. Left alone to commercial incentives, solar businesses will tend to operate solely in vibrant economies and ignore challenging markets. To ensure equitable geographical reach, solar businesses operating in challenging markets will receive grant funding support under this subcomponent. (2) Access to Finance for Stand-alone Solar System Businesses component has 2 subcomponents. Line of Credit for Stand-alone Solar Businesses subcomponent will facilitate access to debt financing in support of the stand-alone solar systems market. This subcomponent will support (a) solar equipment distributors supplying stand-alone solar products to households and productive end users; (b) households and productive end users of solar equipment; and (c) energy service companies26 electrifying public institutions, such as schools and health centers. Women entrepreneurs will have an equal level of access to financing. Contingent Grant Facility for CFIs will support lending to ‘Stage 3’ solar companies by covering up to 50 percent of the loan principal in case of a default resulting from the nonperformance or underperformance of the underlying technology.