By Ajong Mbapndah L
In a continent where over 600 million still live without electricity, the Universal Energy Facility (UEF) is making its mark with critical action to tackle the problem and improve lives. Launched in 2020, the UEF hit the ground running with a focus on mini grids in Benin, the DR Congo, Madagascar. Sierra Leone. Nigeria with a programme boosting stand-alone solar solutions for businesses and households.
As a multi-donor fund, the UEF provides results-based financing (RBF) incentives to clean energy companies, with the objective of speeding up and scaling up energy access across Sub-Saharan Africa and beyond, in line with SDG7 and the Paris Agreement.
“Africa’s vast and diverse landscape offers numerous opportunities for renewable energy solutions, such as solar mini-grids and standalone solar units with battery storage. The UEF is committed to making sustainable energy accessible and affordable for all Africans,” says UEF Senior Director Anita Otubu in an interview with PAV.
Buoyed by the steady progress, the UEF plans to continue its positive trajectory by engaging with donors, governments, the private sector, and local authorities to reduce the clean energy access gap.
With sustained commitment to the transformative power of electricity access, we can achieve significant change in the next ten years, says Anita Otubu.
Could you start with an introduction to the Universal Energy Facility (UEF) for us?
The Universal Energy Facility (UEF) is a global partnership platform designed to accelerate the delivery of clean, affordable, and reliable energy access in Africa. It brings together governments, international financial institutions, development finance institutions, philanthropic organizations, and the private sector to mobilize and deploy finance for energy projects across the continent.
In a continent as vast and varied as Africa where the energy needs are chronic, what does the Universal Energy Facility consider as clean energy and how available and affordable is access to it for Africans?
Africa’s vast and diverse landscape offers numerous opportunities for renewable energy solutions, such as solar mini-grids and standalone solar units with battery storage. The UEF is committed to making sustainable energy accessible and affordable for all Africans. This involves not only financially supporting renewable energy developers but also strengthening the entire energy market ecosystem by collaborating with governments, the private sector, philanthropies, and other key stakeholders.
By supporting a robust regulatory and financial framework, we can significantly impact the productivity and development of the countries we serve.
This approach yields multiple benefits, including climate change mitigation through reduced CO2 emissions, green job creation, the growth of clean energy markets, and improved access to energy for MSMEs, healthcare centers, and schools.
May we know the impact of the Universal Energy Facility since its creation-any figures or verifiable stats to back up its impact?
As of today (December 16, 2024), we are proud of our achievements, particularly in the last two years. We are on track to connect nearly 60,000 people to electricity by the end of the year, a number that will be significantly exceeded early next year. This translates to approximately 4,000 electrified businesses and public institutions.
This means shops can extend their operating hours, tailors can work at night, and supermarkets can offer refrigerated products. Schools and healthcare facilities can provide better education and healthcare services, respectively.
Beyond the direct impact on people’s lives, our work has led to the removal of almost 5,000 tons of CO2 emissions annually. We have also empowered women by connecting nearly 3,500 female customers to clean, reliable, and sustainable energy.
Considering the hundreds of millions that have no access to energy, and at the current pace of things, what impact does the UEF hope to achieve in the next ten years?
We aim to continue our positive trajectory by engaging with donors, governments, the private sector, and local authorities to reduce the clean energy access gap. With sustained commitment to the transformative power of electricity access, we can achieve significant change in the next ten years.
What are the criteria used in selecting or providing grants to eligible entities both those used in providing the services and those at the receiving end?
Our team of experts in energy and finance carefully evaluates each project’s viability based on its financial, implementation, and risk profile within our results-based approach. We prioritize projects that align with our goals and have the potential to deliver significant impact.
What mechanisms does the Universal Energy have in place to ensure that the grants are been used efficiently to produce the desired results?
As a results-based mechanism, we focus on achieving milestones outlined in detailed implementation plans. Our team maintains regular communication with developers to track progress and provide support as needed. This ensures that funds are used efficiently and effectively.
May we know some of the challenges that the UEF has faced in the implementation of its projects?
While challenges are inevitable, they have provided valuable lessons and strengthened our operations. Macroeconomic disruptions and supply chain issues can impact project viability and timelines. Additionally, government priorities may shift, as seen during the COVID-19 pandemic.
However, our most significant challenge is the need for consistent and increased funding. Our results-based financing approach has proven effective, and we have a robust pipeline of pre-approved projects ready for implementation. We are actively seeking new partners to help us bring electricity to more communities in Africa.
Africa has 54 countries, and it looks like UEF operations are in about six countries, how were these countries selected and what plans are in place to extend to the rest of Africa?
When selecting countries for our operations, we consider factors such as government commitment, the political and financial environment, and the alignment with existing energy access initiatives. We also collaborate with other organizations within the Results-Based Financing Group to coordinate efforts and avoid duplication.
We recently expanded our operations to Zambia, supporting a presidential initiative to build multiple mini-grids in partnership with the Rockefeller Foundation. We continue to explore opportunities for further expansion in other African countries.
Can you shed light on the Financing Energy Prosperity Campaign that the UEF launched recently?
The Financing Energy Prosperity campaign aims to highlight the human impact of our work. By showcasing real-life stories, we demonstrate how our investments contribute to climate action, job creation, education, and healthcare. This campaign helps us engage partners and mobilise additional resources.
May we know the reaction or response of governments and people in countries you currently have projects in, and what plans does the UEF have for 2025?
Governments and communities in our operational countries have expressed positive feedback. They appreciate our support in achieving their energy access goals and improving the lives of their citizens.
In 2025, we will continue constructing mini-grids in our operational countries and actively seek new partnerships to expand our impact. By addressing the energy access challenge, we can contribute to the sustainable development of the African continent.
*Culled From The January Issue of PAV Magazine
