UNCDF announces Pilot and Scale-Up Solar PayGo in Ethiopia

Deadline: 07-Jun-21

UNCDF is inviting applications for Pilot and Scale-Up Solar PayGo to enhance the adoption and utilization of solar energy technologies in off-grid areas through leveraging digital services.

The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 46 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.

Areas of Intervention

Challenges: Over 55% of the population do not have access to electricity due to several reasons. The main barrier for adoption and usage of solar energy technologies is lack of innovation in distribution and financing of products that cater to the energy needs of rural community. Limited access to finance from financial institutions also hinder uptake of solar energy products.
Objectives: The solutions proposed by applicants should address the solar energy needs of rural community through innovative distribution and financing mechanisms (i.e. supplying solar PAYGO products).

Focus Areas

UNCDF will provide performance-based grants to energy companies to pilot and scale solar PAYGO products that enhance adoption of solar energy technologies in off-grid areas across the country. The goal of this initiative is to support energy companies to introduce PAYGO business model in the solar sector and leveraging digital services to increase supply of solar products.

Funding Information

The project is expected to have duration of 12 months
The grant will be up to a maximum of USD 25,000 in size.

Target Segment

The primary target beneficiaries of the intervention are rural communities living in off-grid areas of the country.
The proposed solution should target underserved/unserved low-income customers living in off-grid areas in the nine regional states.

Eligibility Criteria

The applicant/ lead applicant must be a registered entity and incorporated in Ethiopia.
The applicant should be operating in Ethiopia for at least 3 years.
The applicant should have audited financial statements for at least 3 years.
The applicant’s solutions and business model must target rural/off-grid population including women in Ethiopia.
Applicants selling systems that require installation by a trained technician are encouraged to have at least one technician with certification from appropriate authority on their roster. Companies are in general encouraged to provide training to their technicians and sales staff.
All products and systems installed with UNCDF support must come with a warranty of at least 1 year. Companies must also demonstrate that they provide after-sales, maintenance and repair services to their customers.
The products must fulfil performance and quality standards prescribed by Ethiopian Standard Authority.
Applications from consortiums of organizations must show that the partnership was established prior to this call for applications or due to this call for application with a letter of intent.
The solution proposed must be implementable in Q3 2021 with a project duration of 12 months and ending by September 30, 2022.
Applicants shall not have been the subject of bankruptcy, liquidation, judicial settlement, safeguarding, and cessation of activity or any other similar situation resulting from a similar procedure.
Applicants and any of their staff or member of their board of directors shall not be included in the United Nations financial sanctions lists, particularly in the fight against the financing of terrorism and against attacks on international peace and security; and
Applicants must not be involved in any of the following activities : manufacture, sale or distribution of controversial weapons or their components, including cluster bombs, anti-personnel mines, biological or chemical weapons or nuclear weapons; manufacture, sale or distribution of armaments and/or weapons or their components, including military supplies and equipment; replica weapons marketed to children; manufacture, sale or distribution of tobacco or tobacco products; involvement in the manufacture, sale and distribution of pornography; manufacture, sale or distribution of substances subject to international bans or phase-outs, and wildlife or products regulated under the CITES; gambling including casinos, betting etc. (excluding lotteries with charitable objectives); violation of human rights or complicity in human rights violations; use or toleration of forced or compulsory labor; use or toleration of child labor.
Eligible candidates can apply alone or as lead applicant in a consortium of firms, as long as they comply with the eligibility requirements set forth. In the case that a consortium of entities applies to the RFA, the lead applicant shall comply with the eligibility requirements. The lead applicant will be responsible for:
- Submitting the application form on behalf of the consortium.
- Ensuring that each partner is fully aware of the composition of the partnership and of the contents of the Application Form.
- Signing the Performance-based Agreement with UNCDF.
- Fulfilling all obligations set out in the Performance-based Agreement.
- Ensuring the allocation and the fulfilment of the funds amongst the partner in the consortium in compliance with the Performance-based Agreement.
- Ensuring the allocation and the fulfilment of the tasks amongst the partner in the consortium in compliance with the Performance-based Agreement.