Sierra Leone adopts financing model for private minigrid developers
The government of Sierra Leone plans to implement a results-based financing (RBF) mechanism to develop solar minigrids.
The RBF model will provide grants to private minigrid developers and operators based on the number of connections they set up.
The chosen developers will finance, build, own and operate the minigrids, with grants disbursed upon verification of defined milestones.
Sustainable Energy for All, an organization hosted by the United Nations Office for Project Services (UNOPS), will implement the project in cooperation with UNOPS to electrify 35,000 households. The European Union will contribute €20 million ($20.6 million).
“The use of RBF for the rollout of solar minigrids is an important step for Sierra Leone,” said EU Ambassador to Sierra Leone Jacek Jankowski. “As the RBF mechanism is scalable, it has the potential to lead to a palpable acceleration in rural electrification.”
The Sierra Leone Ministry of Energy has identified 703 sites with minigrid potential across the country through its national online database for electrification. There are currently more than 100 solar minigrids in operation in Sierra Leone under private sector portfolios.
The European Union is working with the Sierra Leone government to develop access requirements to RBF grant funds, including procedures for the selection of developers and operators.
According to the International Renewable Energy Agency (IRENA), Sierra Leone had deployed 9 MW of solar at the end of 2023. Financing was secured for a 50 MW solar project in December 2023.
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