What We Do
We develop, acquire, and finance microgrid projects that serve communities in Sub-Saharan Africa who are unlikely to have grid-connected power in the near future. We demonstrate that distributed renewable energy can be deployed today using private sources of capital.
How We Do It
Focus on customer benefits, not kilowatt hours
As an energy service provider, we don’t simply focus on providing power to our customers and charging them for how much they use. Instead, we offer service packages that include a choice of energy-efficient lighting and appliances, maximizing value delivered and minimizing cost.
By moving from kerosene or other fuels to renewable energy services, customers see the immediate benefit of paying less for more energy services. Our value proposition is clear because our customers are choosing between microgrid-power and no power. When building in areas where grid connection is plausible, we preserve the option to grid-connect and choose the lowest cost option if and when the centralized grid is extended.
Careful site selection
We serve communities currently ignored by centralized utility planners and providers of development capital.
We choose sites where microgrids are the most competitive option, based on distance from the central grid and potential load size. Optimal site selection is essential for delivering affordable, financially sustainable energy services without the need for subsidies.
Proven partners
We work with experienced contractors, reputable suppliers of equipment, proven hardware and software systems developers, and suppliers of a growing selection of energy-efficient lighting and appliances to deliver high quality, affordable energy services to our customers.
Aggregation
Most individual microgrids are too small to attract the necessary private sector investment. By aggregating several microgrids into one project, we achieve economies of scale and optimize investor opportunities.
Lowering the cost of capital – Development Finance Ninjas
There are many challenges to making investments in the world’s poorest nations. Overseas development assistance agencies, multilateral development banks, and development finance institutions (DFIs) bring essential expertise and resources to facilitate investment in these nations. But DFIs need to satisfy multiple constituencies and require large transaction costs, even on small transactions. This is one reason why they have failed to act on the opportunity presented by distributed generation and distribution.
The relationships that DFIs have with host nations are essential to reduce project risk and lower capital costs. But their lumbering size, long transaction cycles, and complicated procedures intended to minimize environmental and social costs for billion-dollar projects act as a barrier to investment. We are Development Finance Ninjas (DFNs) – a small, nimble, and creative team sized appropriately for microgrids. We execute transactions faster and with much lower cost than the DFIs can, while also working closely with them to leverage their strengths.