Millions of people in rural Uganda are set to access reliable and cheap electricity for the first time under a new off-grid solar scheme.
ENGIE through its solar home systems company Fenix International will be scaling up off-grid solar technology deployment with the European Investment Bank (EIB) providing the critical funding.
EIB’s involvement addresses the biggest barrier faced by 80% of Ugandans without access to electricity – solving the last mile challenge of families unable to afford the initial upfront cost of electricity for the home.
EIB will provide a US$12,5M loan to support the deployment of 240,000 high-quality solar home systems in Uganda by Fenix International, which a subsidiary of ENGIE.
Fenix will use a pay-as-you-go model, which will allow families to repay the upfront equipment costs of the solar home systems over years at less than 20 cents (in US dollar terms) a day.
The financing via EIB will also allow repayments for systems purchased in US dollars, to be made in Ugandan shillings. Previously currency fluctuations have been a major hindrance to Ugandans without access to foreign currency, seeking clean affordable clean energy solutions.
Source: EsiAfrica via Crude Mix Africa