We bundle investments into a portfolio of projects. “Our business model is to apply our standardised project evaluation, financing and management tools for investments in small and medium scale renewable energy projects. “Governments and business communities continue to invest mainly in fossil fuel generation to meet their energy demands due to the lower investment cost, even if the total lifetime cost surpasses that of renewables,” explains Osmundsen. Terje Osmundsen, CEO and one of the two founders explains: “Today, non-recourse project finance in emerging countries is the main solution for financing renewable energy projects, which works well for large scale projects of 40-50 million USD upwards but is not suited for small and medium-sized, because of the time and high transaction costs.”įinancing problems are to be added to a lack of know-how and resource among local developers, utilities and regulators combined with a lack of transparency, fear of corruption and illegitimate use of climate funds.
Over the next two years, it intends to raise over 200 million USD to finance growing portfolio of small and medium-sized solar and hydropower projects in Sub-Saharan Africa, leading to verifiable CO2 reductions, job creation and community development. Oslo- and Nairobi-based Empower New Energy, a renewable energy impact investment fund, was created in early 2017 to find a solution to the financing gap of the smaller scale projects. While these countries hold significant renewable energy potential, the lack of international equity and debt finance available for decentralised generation is a major hurdle.
Electricity consumption in developing countries is 20-100 times lower per capita than in the OECD. The clean energy revolution is here, but for countries most in need, the transition is far too slow.
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