Background 

Despite recent strides in the energy access sector, the world’s lowest income communities still lack access to modern energy services needed to perform basic, life-improving tasks such as cooking and lighting. This energy poverty stems from numerous factors including market barriers, poor grid connections and access to renewable, off-grid alternatives.  At current rates and without urgent action, by 2030, globally 660 million people will not have access to electricity, and 1.9 billion people will be without clean cooking solutions.

The Energy Access Institutions Facility Set to Deliver Energy Access to Millions

Under the management of CLASP, the Energy Access Institutions Facility aims to raise and provide over $25 million USD in core funding and targeted technical support to organizations known as market institutions. These institutions have a proven track record and are best placed to scale the energy access sector and deliver clean energy access to millions of people.

These institutions are working to grow the distributed renewable energy (DRE) sector. DRE systems are stand-alone, off-grid energy solutions that generate and distribute renewable energy without needing to be connected to the main grid. Expanding this sector has the potential to transform lives and livelihoods by increasing incomes, empowering women, enhancing educational opportunities, improving healthcare, reducing food waste, avoiding greenhouse gas emissions, and much more.

When CLASP was announced as the host organization, Christine Egan, CEO at CLASP, reflected on how the Energy Access Institutions Facility would push for real impact in the sector:

“The Energy Access Institutions Facility is positioned to impact and enhance millions of lives at a critical moment for sustainable development and global climate ambition. Exponentially increasing the number of people using off-grid, renewable energy and appliances will be a livelihood game changer in regions where access to traditional grid electricity is insufficient or non-existent. CLASP is committed to serving the sector and partnering with essential energy access institutions to deliver and scale collective impacts.”

Delivering Renewable Off-Grid Energy to Millions 

Over the next five years, the Facility’s growing portfolio of organizations is expected to have reach across several countries in sub-Saharan Africa and South Asia, potentially increasing the delivery of renewable off-grid energy to millions of people from low-income communities.

The Energy Access Institutions Facility will be open to market institutions that support:

• Clean cooking solutions
• Energy efficient appliances and equipment
• Productive Use of Energy
• Standalone solar systems
• Micro grids and mini grids

CLASP Selected as Host and Manager of the Facility

In March 2024, at the Transforming Energy Access (TEA) Forum in Kigali, Rwanda,CLASP was announced as the new host and manager of the Energy Access Institutions Facility.

CLASP was selected because of the organization’s 25-year tenure as the leading, global organization advancing affordable, efficient appliances to mitigate climate change and help communities adapt and thrive. CLASP has proven expertise managing similar programs, including serving as the co-secretariat of the Efficiency for Access Coalition, an initiative supporting off-grid appliance market research and innovation; and as Operating Agent for the Super-efficient Appliance and Equipment Deployment (SEAD), a $20 million initiative under the Clean Energy Ministerial. CLASP also manages the Productive Use Financing Facility, a $6.5 million financing facility to catalyze the uptake of productive use appliances across East, West and Central Africa.

CLASP takes over the helm following two years of incubation and development of the Facility managed by Open Capital. The UK’s Foreign, Commonwealth and Development Office (FCDO) and the UK charity Shell Foundation (SF), invested $5.5 million USD in seed funding to the first tranche of market institutions to prove this concept.

In 2024, The Swedish International Development Cooperation Agency (Sida) announced its commitment to providing approximately $4.5 million USD in funding for this next phase of the Facility under CLASP’s management.