GET.invest Mobilising Decentralised Renewable Energy Investment

African Infrastructure Projects “(...) the key problem is not a lack of funding, as might be expected, instead, it is the lack of packaged, bankable projects, (...) which points to a need for more and better project preparation.” Source: the Infrastructure Consortium for Africa 21/04/2019

What is GET.invest? GET.invest is a European programme to support investment in decentralised RE in partner countries, building on its predecessor the Africa-EU Renewable Energy Cooperation Programme (RECP) It is hosted on the European multi-donor platform GET.pro and implemented by GIZ GET.invest has two components: Private sector mobilisation  stimulate partnerships and new project / business devt. Pipeline development  get existing projects and businesses ready for financing. GET.invest delivers on priority initiatives of the European Union and EU Member states, funded by the European Union, Germany, Sweden, the Netherlands and Austria The programme has a geographic focus on Sub-Saharan Africa, activities in the Caribbean and Pacific regions are in preparation 21/04/2019

What business models do GET.invest engage with? On-Grid Electricity Off-Grid Electricity Non-Electrictiy IPP (large) IPP (small) Commercial and Industrial Energy Mini-Grids Solar Home / Inst. Systems Solar Lighting / Lanters Household Cooking Energy Commercial Thermal Energy Liquid Biofuels © GIZ 21/04/2019 GET.invest core scope; GET.invest flexible scope, on demand, not GET.invest‘s current scope

How does GET.invest deliver? Private sector mobilisation  stimulate partnerships and new investments Market Information Business-to-Business Meetings Demand stimulation Empowering Associations Pipeline development  Get existing projects ready for financing Expert advisory and coaching Support to milestone studies/documents Capacity development of key stakeholders © Alliance for Rural Electrification © Alliance for Rural Electrification 21/04/2019

Highlight 1: B2B events Why B2B events? Information Mobilisation Stimulating B2B cooperation Led by partner associations Ideally attached to other events for efficiency 21/04/2019

Highlight 2: “Finance Catalyst” GET.invest supports project and business development through the “Finance Catalyst”, an on-demand project preparation support facility providing “honest broker” advisory on project development, structuring and access to finance Accessible in a fair “level playing field” process through the central website “intake” www.get-invest.eu Feeds projects into financing instruments, in particular EU instruments such as ElectriFI Current pipeline represents (assuming 50% realisation): 50+ projects being supported, ≈650m EUR investment volume, annual reduction of 1+m tCO2e, energy for 7+m end-users 21/04/2019

Finance Catalyst Eligibility Criteria Ticket size: €0.5M - €50m, ideally up to €10m Geographical scope: focus on Sub-Sahara Africa, in preparation: Caribbean, Pacific All renewable technologies are eligible except first generation biofuels; currently investigating inclusion of clean cooking Scalability and replicability are important considerations Financial viability of the projects is essential © Alliance for Rural Electrification 21/04/2019

GET.invest Finance Catalyst: Portfolio 350+ applications, 90 selected, 53 active clients (H2 2018) Business models: 50/50 on and off-grid Technologies: mostly solar PV 21/04/2019

GET.invest Finance Catalyst: Support provided Support is categorized into four types Applicants may receive more than one type of support, as needed In terms of time / resource allocation, the majority of support is provided for business case and in particular financial model structuring Distribution of support types over the active portfolio (H2 2018) 21/04/2019

4.2 MW biogas plant in South Africa 1.4 MW mini-grid in Lesotho © Som Energia Cooperativa, licensed as CC BY-NC-SA 2.0 © GIZ 4.2 MW biogas plant in South Africa 1.4 MW mini-grid in Lesotho © GIZ / Glenn McCreath © GIZ 0.5 MW captive solar solution in Ghana 1.4 MW on-grid biogas plant in Burkina Faso 21/04/2019

Total investment volume Success story: Create an investable portfolio of 25 mini-grids - Lesotho Example: We simplified a complex idea into an investment proposal of a portfolio of 25 mini-grids in Lesotho, now acceptable to 3 funders. The project construction could start in 2019. Total investment volume Additional end-users €10M 20k © GIZ/ Dirk Ostermeier 21/04/2019

Total investment volume Success story: Facilitate a REPP-ElectriFI loan for a SHS company - Nigeria Example: We assisted a Nigerian company improve its accounts, forecast model and business strategy. The company attracted two early stage funders and a syndicated (REPP-ElectriFI) loan. Total investment volume Additional end-users €10M 40k © GIZ/ Thomas Imo / Phtotek.net 21/04/2019

Success story: Restructure capital for a 7.5 MW solar IPP - Burundi Example: We engaged directly with the funder of a 7.5 MW solar IPP in Burundi to understand the role acceptable to them, triggered the interest of other DFIs, and crunched the numbers to attract other financiers. Total investment volume Additional end-users €12.7M 545k © GIZ/ Glenn McCreath 21/04/2019

Financing Landscape (for the Finance Catalyst "Pipeline") Multitude of different financing options, each with specific modalities Usually many financiers involved in one project Initial stages of obtaining finance usually highly informal, personal contact Our network: many small / new / private actors Predominantly dedicated financing instruments for decentralised RE as well as private / family offices Hardly any DFI involvement (mostly due to “ticket” sizes) 21/04/2019

GET.invest: Partnerships and Cooperation GET.invest closely coordinates with other support instruments as well as in-country stakeholders, Embassies, Delegations, bilateral agencies (e.g. GIZ / KfW), government actors, and donor working GET.invest relies on a broad network of implementation (… through which we deliver) and cooperation partners (with whom we cooperate and coordinate), incl.: IMPLEMENTATION PARTNERS COOPERATION PARTNERS 21/04/2019

What have we learned? Project development can be accelerated, but not “magically”: stop-and-go, threats and risks – and it takes time. Results materialise with time delays (!) Support should be as flexible and demand-driven as possible, as well as lean and accessible procedurally In turn, “prescriptive” approaches both in terms of technologies as well as business models should be avoided (highly dynamic market!) Close working relationship with both “peers” (similar support providers) as well as financiers and investors is essential Project development support needs to be combined with support to the regulators (organisational development, process management, technical / legal / economic know-how) Web-based tools can help, but it is “people business”, trust is key! 21/04/2019

Thank You for Your Attention! Ilham Talab GET.invest E-mail: ilham.talab@get-invest.eu