Kigali, Rwanda – At the Transforming Energy Access (TEA) Forum in Kigali, Rwanda this week, CLASP was announced as the new host and manager of the Energy Access Institutions Facility, an initiative that seeks to provide core funding and technical assistance to organizations who accelerate access to life-changing, off-grid energy to millions of people around the world.

Over the next five years, the Facility’s vision is to deploy $25 million USD to a portfolio of five to ten impactful organizations, known as “market institutions”, that 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.

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.

Market institutions that support the following will be eligible to apply to the Energy Access Institutions Facility:

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

This Facility is a result of multiple years of funding and commitment by the UK’s Foreign, Commonwealth and Development Office (FCDO) and the UK charity Shell Foundation (SF), and two years of incubation and development managed by Open Capital. FCDO and SF provided $5.5 million USD in seed funding to the first tranche of market institutions to prove this concept.

In the Facility’s first year, five market institutions, including the Africa Minigrid Developers Association (AMDA), Ethiopia Energy Market Accelerator (EMA), GOGLA, Nigeria Off-Grid Market Accelerator Programme (NOMAP), and the Uganda Off-Grid Market Accelerator, were the first grantees.

The Swedish International Development Cooperation Agency (Sida) has recently announced its commitment to providing approximately $4.5 million USD in funding for this next phase led by CLASP. This support will enable the Facility to disperse further funding to another round of market institutions and accelerate the Facility’s growth. In the coming months, CLASP is committed to securing additional funding from donors who have already indicated an interest in this impactful initiative.

Anders Arvidson, Senior Advisor and Team Lead in Sida’s Power Africa Team, noted:

“The Facility’s vision of accelerating access to clean energy for the world’s lowest-income people strategically aligns with Sida’s mission to reduce poverty around the world by partnering with the private sector in support of market development and mobilization of capital. We are proud to offer our support to take this initiative to its next phase, and to accelerate necessary growth in the clean energy sector. We look forward to working closely with CLASP to realize this vision.”

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.

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.”

In the coming months, CLASP will communicate opportunities for involvement and next steps for market-enabling organizations who are interested in participating, as well as donors who are interested in further supporting the Facility.

About the Facility

The Energy Access Institutions Facility is a joint donor initiative that provides funding and technical support to organizations known as market institutions to overcome barriers and scale the distributed renewable energy (DRE) sector, to accelerate universal access to affordable, clean, and modern energy (Sustainable Development Goal 7). The Facility is managed by CLASP, with initial contributions from Shell Foundation and FCDO, and a current contribution from Sida.

Learn more about the Facility.

About CLASP

CLASP is the leading global authority with 25 years’ expertise on how appliance efficiency drives climate mitigation, adaptation and improves the lives and livelihoods of people. An international nonprofit with offices on four continents, CLASP collaborates with policymakers, appliance manufacturers, and leading experts to deliver sound policy recommendations, innovative tools, groundbreaking research, and clear pathways to a more sustainable world for people and the planet.