After going through some years of stagnation, 2021 saw an all-time high increase in investment flows into the off-grid solar sector (GOGLA 2022). While this is good news, it doesn’t tell us the whole story. Start-ups and smaller companies still report the COVID-19 pandemic has negatively impacted their ability to raise capital. Actors in the impact investment space have a key role to play in order to achieve desired progress toward SDG7, providing companies across different growth stages with the capital needed to achieve a thriving off-grid sector. EEGF came at a timely moment for the access to energy space and strives to address the financing gap in the space with its unique, tailored approach.
Highlights and impact snapshot
In 2021, EEGF welcomed FinDev Canada as a fund partner, In 2022 NDF, DFC and OeEB were won and onboarded to the EEGF mission; reaching a fundraising milestone surpassing $110m. Currently, EEGF has nine portfolio companies providing services and products ranging from productive uses of energy to PayGo solar power for businesses. As of the end of 2021, investments by EEGF have resulted in 9,230 tons CO2 eq of emissions avoided, 50,516 total beneficiaries reached, 1,057 jobs supported, and 10,290 kWp of additional energy received by end-clients (learn more in our Impact Report).
EEGF and Gender Lens Investing (GLI)
Improved access to energy can have a transformative effect on the lives of many women. Acknowledging the relationship between access to energy and gender equality, EEGF aims to address the unique needs of women as customers, employees, and energy entrepreneurs by applying the 2X Challenge criteria.
Climate action: avoiding and reducing emissions
Although EEGF mainly finances companies that provide clean energy technologies directly to businesses and households, it also supports companies that improve the overall value chain. Beyond the direct impact on SDG 7, clean energy technologies also reduce the amount of greenhouse gas emissions produced due to the discontinuation of fossil fuel-based methods of electrification, such as kerosene lanterns.