Financial Aggregation for Distributed Renewable Energy in East Africa

Financial aggregation is a process in which various assets are grouped together and financed or refinanced by investors, based on the future cash flows from these assets. UNDP’s Climate Aggregation Platform seeks to promote the scale-up of financial aggregation for small-scale, low-carbon energy companies in developing countries. TFE was contracted to assess the potential of these financial instruments in East Africa, to compile an action plan on steps to address barriers and to develop several knowledge products that will ease the process of closing deals and grow the market towards aggregation-readiness.

We mapped mini-grid, off-grid solar, productive use, captive power (C&I) and e-mobility companies and investors, determined the state of infrastructure, macro-economic, political and demographic conditions and enabling environments needed for DRE financial aggregation and sized the addressable market. We developed country action plans that outline actionable recommendations for moving the market closer to aggregation readiness in each country and also implemented them.

Download the 3-part report series (Uganda, Rwanda and East Africa) from the UNDP website here, and watch a recording of our presentation of findings here.