Applications are now open for a renewable energy grant scheme designed to strengthen private sector development and expand sustainable energy access in ODA-approved developing countries.
The program supports commercially driven on-grid and mini-grid renewable energy projects during 2026–2029, prioritizing Sub-Saharan Africa and Least Developed Countries (LDCs). Grants primarily fund risk-reduction activities before investment decisions, including project development, grid infrastructure, and guarantee premiums.
Program Overview
This funding call supports private sector-led renewable energy investments in developing countries.
The scheme is structured to:
• Increase access to affordable, reliable, sustainable, and clean energy
• Reduce greenhouse gas emissions in the energy sector
• Strengthen commercially viable renewable energy markets
• De-risk projects before final investment decisions
The funding period covers project activities from 2026 to 2029.
Strategic Objectives
The grant scheme aims to contribute to:
1. Energy Access Expansion
• Improve access to electricity in underserved regions
• Strengthen national and regional grid systems
• Support sustainable energy infrastructure
2. Emissions Reduction
• Reduce fossil fuel dependency
• Accelerate renewable energy deployment
• Support climate mitigation efforts in developing economies
3. Private Sector Market Development
• Strengthen renewable energy investment pipelines
• Support bankable, scalable projects
• Reduce pre-investment risk
Geographic Focus
Eligible countries: ODA-approved developing countries
Priority regions:
• Sub-Saharan Africa
• Least Developed Countries (LDCs) on the OECD DAC list
Important note: Projects in South Africa are unlikely to be prioritized.
Eligible Sectors
Priority sectors:
• On-grid renewable energy projects
• Mini-grid renewable energy systems
Not eligible:
• Solar home systems
• Improved cooking solutions
• Off-grid household-level products
Projects must demonstrate commercial viability and scalability.
What the Grant Covers
The scheme is designed to reduce investment risk before final financial closure.
Eligible activities include:
1. Project Development Activities
• Feasibility studies
• Environmental and social impact assessments
• Technical design
• Financial modeling
2. Public Infrastructure for Grid Connection
• Grid interconnection infrastructure
• Supporting facilities required for renewable energy integration
3. Guarantee Premiums
• Coverage of guarantee premiums
• Support for long-term financing arrangements
The funding is not intended to directly finance full-scale capital expenditures but rather to facilitate investment readiness.
Funding Details
Project period: 2026–2029
Priority threshold: Applications requesting more than NOK 5,000,000 will be prioritized.
Estimated number of agreements: Approximately 10–20 new agreements
Important: Meeting eligibility criteria does not guarantee funding.
Who Is Eligible?
Eligible applicants must:
• Be commercial enterprises operating in the renewable energy sector
• Be independent legal entities
• Provide accurate and complete organizational information
Consortium applications are allowed if:
• All members meet eligibility criteria
• Roles and responsibilities are clearly defined
Non-commercial entities such as NGOs, academic institutions, or public bodies are not eligible as lead applicants.
Required Competence and Capacity
Applicants must demonstrate:
1. Technical Competence
• Renewable energy expertise
• Project development experience
• Understanding of grid integration
2. Administrative Capacity
• Financial management systems
• Reporting capability
• Risk management procedures
3. Contextual Understanding
• Knowledge of local energy markets
• Understanding of regulatory frameworks
• Awareness of political and operational risks
4. Partner Management Systems
If partners are involved, applicants must:
• Have operational guidelines for partner selection
• Demonstrate monitoring and control systems
• Provide information about known implementing partners
Why This Funding Matters
Many renewable energy projects fail to reach financial close due to high pre-investment risk.
This grant scheme:
• Reduces early-stage risk
• Strengthens investment readiness
• Encourages private capital mobilization
• Supports sustainable energy transitions in developing countries
By focusing on commercially viable projects, the scheme aims to create long-term market impact rather than short-term interventions.
How to Apply
Step 1: Confirm Eligibility
Ensure your company qualifies as a commercial renewable energy enterprise operating in ODA countries.
Step 2: Validate Project Fit
Confirm that your project:
• Is on-grid or mini-grid
• Is commercially driven
• Is located in a priority geography
• Excludes ineligible sectors
Step 3: Prepare Technical Documentation
Include:
• Project concept
• Market analysis
• Risk assessment
• Environmental and social safeguards
• Financing plan
Step 4: Demonstrate Financial and Operational Capacity
Provide:
• Corporate documentation
• Financial statements
• Organizational structure
• Partner management frameworks
Step 5: Submit Application
Follow official submission guidelines and deadlines.
Common Mistakes to Avoid
• Submitting off-grid solar home system proposals
• Proposing non-commercial or grant-dependent business models
• Insufficient documentation of technical capacity
• Weak risk assessment
• Lack of grid integration planning
• Inadequate contextual analysis
Strong applications clearly show investment readiness and scalability.
Frequently Asked Questions (FAQ)
1. Who can apply?
Only commercial renewable energy enterprises that are independent legal entities.
2. Are consortium applications allowed?
Yes, if all consortium members meet eligibility requirements.
3. What countries are prioritized?
Sub-Saharan Africa and Least Developed Countries on the OECD DAC list.
4. Are solar home systems eligible?
No. Solar home systems and improved cooking solutions are not eligible.
5. What is the preferred grant size?
Applications requesting more than NOK 5,000,000 will be prioritized.
6. Does eligibility guarantee funding?
No. There is no entitlement to funding even if criteria are met.
7. What types of costs are supported?
Project development costs, grid connection infrastructure, and guarantee premiums for long-term financing.
Conclusion
This renewable energy grant scheme provides strategic risk-reduction support to commercially viable on-grid and mini-grid projects in developing countries.
By targeting early-stage project development and investment readiness, the program aims to unlock private capital, accelerate clean energy deployment, and reduce emissions in priority ODA countries.
Commercial renewable energy enterprises with strong technical expertise and scalable business models are best positioned to benefit from this opportunity.
For more information, visit Norad.
