Mini-Grids Programme
An effective solution for providing reliable, sustainable, and cost-effective energy to remote and underserved communities
Summary
Mini-grids provide quick and efficient means of connecting millions of households and businesses to clean, affordable and reliable electricity in hard-to-reach communities. The UEF provides incentive payments (i.e., grants) on a ‘results-based’ approach to eligible organizations that develop and operate mini-grid systems and provide verified electricity connections in selected countries.
The objectives of the UEF mini-grids programme include:
- Accelerate access to electricity for households, businesses and other productive uses across high-impact countries
- Unlock commercial capital for investment to scale mini-grids development
- Support the viability of mini-grid projects by bridging the affordability gap for customers
The UEF mini-grid programme was launched in 2020 focusing on mini-grid deployment in Benin, Madagascar and Sierra Leone. The programme was expanded in 2023, strengthening existing country windows and launching a new funding window in The Democratic Republic of Congo. The programme is expected to deliver over 20,000 new or improved electricity connections, with over 5000 verified connections deployed to date.
Eligibility
Interested applicants must meet the following eligibility criteria:
- Must be a for-profit company legally registered with established business operations in the Project Host Country with relevant business/trading license
- All Applicants must own and operate at least one existing operational mini-grid that meets technical standards as specified in the UEF Mini-grid Operating Manual.
- Applicants must be able to demonstrate that they have sufficient available financial resources to develop, construct, commission, and operate all mini-grid projects that they propose to the UEF.
- Applicants must provide evidence of compliance with financial reporting requirements, including audited financial accounts for the preceding two (2) financial years and most recent tax return, or tax compliance certificate no older than twelve (12) months.
- Must comply with UEF technical standards, environmental and social management systems, and gender mainstreaming.
Subsidy Payment
The UEF will disburse grant payments to approved mini-grid projects based on a results-based incentive of USD 592 per electricity connection.
The grant disbursement is made once the UEF Programme Manager verifies deployments and connections, and final approval is granted by the UEF. Grantees are required to comply with the UEF quality and service standards requirements and provide support to the UEF in remote verification process as well as arranging verification visits by the Independent Verification Agents.
How to Apply
The UEF’s administrative processes take place through a secure, web-based IT platform (the “UEF Platform”) that enables transparent application processing, project monitoring, remote connection verification and data aggregation. The UEF will launch a Call for Pre-qualification Application during a specific time frame to short-list eligible, pre-qualified companies. Thereafter, the UEF will release the Project Application Collection announcements (Site-specific stage) for the pre-qualified companies to apply for a grant for their project.
Calls for applications will be announced on this website and social media.
Check the Resources page for application information about UEF's latest funding windows.
Email us for more information: UEF@seforall.org
Partnerships
As a perpetual funding entity dedicated to accelerating the transition to sustainable energy worldwide, we're looking to connect with visionary partners who share our commitment. Together, we can make a lasting impact on the planet and ensure a brighter future for all.
$500m
Total Funding
$44m
Current Funding
$456m
Funding Sought
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Frequently
Asked Questions
Find answers to commonly asked questions about the programme.
Mini-grid projects proposed by the applicants will be evaluated by the UEF to ensure they meet a minimum level of development in order to be eligible for a grant from the UEF. Pre-qualified applicants must be able to demonstrate that they have community, local government, and national government support for proposed projects, in the form of relevant licenses, permits, letters, and other documentation.
In the current Project Application Collections, only projects utilizing solar PV as their primary generation technology are eligible for funding. While diesel generators and other non-renewable backup power sources can be included in a project, they must not exceed 40% of power generation in any given fiscal quarter. Additional eligible generation technologies may be announced in future Project Application Collections.
Applicants can apply for multiple projects; however, each project must meet the eligibility criteria and be submitted within the specified application windows for the relevant countries.
The grant disbursement of USD 592 per electricity connection is based on verified results. As part of the grantee’s claims report, the UEF performs remote connection verification through the UEF Platform. For remote verification, the UEF Platform enables grantees to verify the existence and consumption of every connection reported over a 30-day period through smart meters built in as part of each connection. In addition to remote verification of connections, the UEF Programme Manager conducts random on-site verifications to ensure grantees are in compliance with agreed standards and other terms. The UEF Programme Manager verifies the deployments and connections, and payments are made upon final approval.
No, the UEF does not provide pre-financing for projects. The programme disburses grant payments based on a results-based incentive model, where payments are made only after verified and approved milestones by the UEF Programme Manager. The UEF provides direct grant payments on a “results-based” basis to grantees, upon the satisfaction of three milestones: (1) Proof of delivery of the major project equipment to the approved project site; (2) Successful commissioning of the mini-grid; and (3)Submission of claims report which cover connections established by the grantee and verification of connections which meet technical standards and provide stable power supply for at least 30 days after commissioning. Applicants must demonstrate sufficient financial resources to develop, construct, commission, and operate their mini-grid projects independently before receiving any grant disbursements.
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