In 2018, we started investing in mini- grids, closing a $1.2m facility with project developer PowerGen.

Our loan to PowerGen will result in grid-quality electricity being delivered to 2,400 households through the construction of 20 mini- grids on a tea estate in Kenya. The project comprises 242kW of installed solar capacity and 1.25MWh of battery storage.

The transaction will enable us to better understand mini-grid developers and how best to cater to their needs going forward.

The mini-grid sector has struggled to secure the financing it needs to fulfil its potential and drive costs down. We believe the time is right for that to change, with important partnerships forming to overcome key bottlenecks – such as blending results-based public infrastructure funding with different kinds of private investment.

As the sector starts to grow, we see a significant long-term opportunity to provide structuring expertise and flexible debt financing, both for projects and developers.