Our projects> From diesel to solar: Reducing emissions through PAYG at health clinics in Kenya

From diesel to solar: Reducing emissions through PAYG at health clinics in Kenya

Closed
Mitigation
Energy
Health
Call 9
Kenya
Time consumed
 
Start: 01-Feb-21 End: 30-Sep-23
Lead Nordic partner
Differ AS
Country of Lead Nordic partner
Norway
Other Nordic partner(s)
Differ Community Power
Local partner(s)
Population Services Kenya
Other partner(s)
World Resource Institute
NCF grant size
499,000
Total project cost
666,000
Technologies
Solar photovoltaic systems
Methods
Financial instruments, Pay-as-you-go models, Value chain development
Country of implementation:
Kenya
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Description

The project will prove that a lease-to-own model for the provision of electricity services to private health clinics is a viable business model that is attractive to investors and minimises greenhousegas-emitting diesel consumption.

This project develops an innovative and sustainable financing vehicle that enables impact investors and debt providers to finance solar electrification of health clinics in Kenya. The financing vehicle is established to secure financing...
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Objective

The project aims to prove that a viable commercial business can be implemented by mobilising project financing (in addition to technology and O&M) through connecting impact equity investors, debt providers and owners of health clinics through a SPV setup.

Our business concept is to offer a lease-to-own service to owners of health clinics, similar to what pay-as-you-go (PAYG) companies have been offering households for several...
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Results

The result after milestone 1 is that a minimum of 5 health clinics that have signed the contract on energy service delivery and that we have received their first payments. At milestone 2, a minimum of 30 health clinics have signed up for energy service delivery and we have secured project financing to cover the capex for this.
Sustainable Development Goals

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The Nordic Climate Facility (NCF) is a challenge fund that finances innovative climate change projects.

CONTACT INFORMATION

P.O. Box 185

FIN-00171 Helsinki

Finland

Tel: +358 10 618 002

Fax: +358 9 622 1491

NordicClimateFacility@ndf.int

NCF is financed and managed by the Nordic Development Fund (NDF)