CFAs: Grants to support Solutions for Productive Use of Energy (Mozambique)

BGFA is launching its sixth call for proposals (BGFA6) inviting interested private companies (i.e. energy service providers, ESPs) selling commercial energy service subscriptions for Productive Use of Energy (PUE) technologies to compete for funding. BGFA6 is committed to enabling local ESPs to accelerate their business growth in Mozambique and encourages international ESPs to utilise the expertise and capacities of local market actors. International ESPs utilising the expertise and capacities of local market actors will be scored higher in evaluation.

BGFA6 is aimed at boosting energy access in rural and peri-urban areas, and as a result the municipalities of Maputo and Matola are excluded from BGFA6 financing. Given the contribution that PUE technologies can make to the economic viability of micro-/mini-grids, consideration will be given to Applicants that can demonstrate a credible strategy for deploying their solutions in communities with existing (or planned) micro-/mini-grids.

To receive funding, ESPs are required to engage in selling and delivering affordable and renewable offgrid energy services directly to end customers and businesses in an enduring and sustainable manner.

Aims

• The Beyond the Grid Fund for Africa (BGFA) programme is a multi-donor facility established and managed by the Nordic Environment Finance Corporation (Nefco) to finance sustainable development outcomes by supporting the creation of local off-grid energy business. BGFA offers results-based financing combined with targeted technical assistance to private off-grid energy service providers (ESPs) and other market stakeholders, including the local government, with the aim to:
  • accelerate access to renewable and clean off-grid energy for customers in peri-urban and rural areas of Mozambique;
  • make high quality off-grid products and services affordable for customers;
  • unlock early structural challenges in the market;
  • build business, customer and investor confidence;
  • support the creation of new business and job opportunities;
  • mobilise additional climate finance at scale; and
  • support sustainable development.

Funding Information

• Amount available: Up to EUR 3.4 million

Geographical Focus 

• The BGFA Country Programme for Mozambique aims to strike a relevant balance between increasing the number of electricity connections in rural and peri-urban areas, achieving overall development impact and accelerating sustainable off-grid market development.

Eligibility Criteria

• Applicants applying for BGFA6 funding shall be for-profit ESP companies/entities selling PUE services to end consumers and businesses. Applicants must already be legally incorporated and validly existing in Mozambique or commit to being incorporated and registered as such to Nefco’s satisfaction prior to contract signing. Individual persons or groups of persons (who are not legally incorporated and registered as a company in the Project Country) are not eligible for BGFA6 funding.
• Applicants are allowed to enter into various types of project implementation partnerships with for-profit and non-profit entities, community-based organisations and other non-commercial entities. Information on any listed companies will be required in the application if applicable.
• Applicants must provide relevant agreements on partnership arrangements to Nefco’s satisfaction at the latest prior to contracting. Responsibility for the project implementation is to be agreed and defined to Nefco’s satisfaction and the arrangements need to comply with Nefco’s general policies and procedures as well as with BGFA requirements.
• Applicants are not allowed to include government entities, public agencies and/or donors as project implementation partners. Applicants and all partners should be in compliance with all tax, regulatory and legal frameworks and laws in Mozambique or in their home country.
• Project Consortium 
  • A Project Consortium refers to a group of companies or organisations that have formed or agreed to form a consortium for the purposes of applying for BGFA6 funding and implementing a proposed project. A Project Consortium must be represented by an Applicant. The Applicant is required to assume full responsibility for the application and project implementation. The Applicant shall also act as Nefco’s only direct counterpart.
  • All Consortium Members should be legally registered and in compliance with all tax, regulatory and legal frameworks in their home country.
• Project Partner 
  • Applicants may have more than one Project Partner with a material and meaningful interest in the implementation of the proposed project. Project Partners may be non-commercial in nature, including, but not limited to, associations, non-governmental organisations (NGOs) and non-profit organisations. Project Partners may be product suppliers, financial service partners, engineering service providers or similar.
• Applicants must demonstrate:
  • Turnover of at least 15% of the requested BGFA Funding but in any case a minimum of EUR 300,000 during the last fiscal year or existing equity matching the requested BGFA6 funding; and
  • Current ratio with a minimum value of one or higher; and
  • Equity ratio of at least 15%.
• Applicants should be able to show, either by themselves or through proposed partnerships, that they have sufficient resources and competence and prior relevant and sufficient professional market experience of working in PUE off-grid markets either in Mozambique or in one or more SSA countries:
  • Successful deployment of at least one of the following, coherently with the BGFA technology requirements and in either Mozambique and/or another SSA country:
    • 200 pumps and/or irrigation systems and/or fridges/freezers and/or artisanal tools such as metal and wood working;
    • 2 cold rooms/cold storage facilities/cold chain logistics projects (combinations allowed);
    • 1 pilot project powered by at least one renewable energy source for any one of the other identified PUE sub-categories.

For more information, visit Beyond the Grid Fund for Africa.