What is Renewable Energy Fund 'Cana Uhendukiwe'?
This fund provides concessional lines of credit facilities to SACCOs, banks and microfinance institutions, mini-grid developers, and Off-grid Solar Companies who lend to the final beneficiary households and micro-enterprises for off-grid connections. It has two components;
- Line of credit, direct financing, and subsidy for off-grid electrification that provides US$ 30 million line of credit facilities and US$ 15 million Results-Based Financing (RBF) subsidy through 5 windows.
- Technical assistance, capacity building and project implementation support on a need basis to BRD and participating entities (SACCOs, banks, and off-grid companies).
Windows of Investment
We provide wholesale line of credit through on-lending to SACCOs complying with established eligibility criteria. SACCOs will on-lend the funds to final beneficiaries ( households, enterprises, and Off-Grid Solar Companies) for the acquisition and possibly in the case of the Off-Grid Solar Companies, distribution of qualifying solar systems.
We provide wholesale line of credit through on-lending to eligible commercial banks and microfinance banks, which extend sub-loans to eligible final beneficiaries (households, enterprises, and Off-Grid Solar Companies) for the acquisition and possibly in the case of the Off-Grid Solar Companies, distribution of qualifying solar systems.
This window provides direct financing to eligible mini-grid developers to finance up to 70 % of the construction of renewable energy-based mini-grid systems. We may provide ‘bridge loan’ financing until grant funding from available Results-Based Financing programs becomes available, as well as long-term financing beyond commissioning. REF loans are used to bring a mini-grid project to commissioning when RBF becomes available from other donor-funded programs.
This window provides direct financing to qualifying locally registered Off-Grid Solar Companies supporting high quality solar home systems.
The Results-Based Financing Subsidy window is designed to address the affordability issue of solar home systems faced by households in the off-grid area. This is done through the reduction of prices for the systems at varying amounts allocated to Ubudehe 1, 2, and 3 categories with the aim of reaching the lowest income population in Rwanda. The subsidy will be channeled through eligible Off-grid Solar Companies.