There is a need to leverage more sources of finance so as to rapidly increase access to off-grid solar energy for people living without electricity world-wide according to Sameer Shukla, the Advisor at Energy Sector Management Assistance Program (ESMAP) - a global knowledge and technical assistance program administered by the World Bank.

He raised the issue of limited finance while speaking during the Global Off-Grid Solar Forum & Expo 2022 that has gathered over 1,000 delegates from 69 countries in Kigali from October 18 to October 20.

This forum was organised by the government of Rwanda through the Ministry of Infrastructure in partnership with GOGLA-the global association for the off-grid solar energy industry and World Bank.

It is expected to enable sector players to network and showcase off-grid solar products and services.

The summit aims to accelerate the development of the global off-grid solar market contributing to achieving universal energy access by 2030 with particular focus on how off-grid solar can contribute to household needs beyond energy access.

According to the World Bank, 789 million people are still living without electricity world-wide.

Sameer said that in the last seven years, the World Bank has provided $2.5 billion as concessional financing to various governments to scale up access to energy.

Almost three quarters of African countries, he noted, have received the support.

"Along lending, we are also offering capacity building, market mechanisms, regulatory mechanisms, standards among others,” he said.

Despite the support, he said, the money is not enough.

"We have very limited resources. So in the next eight years up to 2030, our strategy is to try to leverage as many resources as we can both from private sector, donors and public institutions as well as other sources such as carbon finance, climate funding among others,” he said.

Sameer said that there is a need for a consolidated manner to leverage financing sources to increase access to energy.

"It is possible to meet the target in 2030. So far, we are getting hundreds of millions of dollars per year and we have to mobilise and reach more than $2 billion per year in the next eight years,” he said.

He, however, said that there are still challenges in terms of utilizing the finance in various countries namely conflicts in some countries, war, floods among other natural disasters as well as lack of capacity to implement projects.

One billion people to access solar energy

Koen Peters, The Executive Director of GOGLA- the global association for the off-grid solar energy industry said that last year they committed to improve the lives of one (1) billion by 2030 through scaling up off-grid solar energy.

He said that GOGLA represents over 200 companies and organizations that are producing off-grid solar products and distributing to households and rural areas that have no energy access.

He said the pledge aims to boost support for the sector to achieve SDG7: "access to affordable, reliable, sustainable and modern energy for all”.

The investment is also expected to avoid 450 million tons of carbon emissions to mitigate climate change.

"We need to work with governments, NGOs, and investors to meet the ambitious target. We need to focus on sustainability to make sure that people are satisfied with the products they get. Quality is really crucial because if customers are not satisfied, they are companies failing,” he said.

Koen said that of the one billion people targeted to be reached with off-grid solar energy, 490 million people have access to energy.

He said that $2.3 billion has been invested and there is a need for between $20 billion and $30 billion up to 2030 to reach full goals.

"Many people in Asia and Africa are not yet connected,” he said.

Ernest Nsabimana, the Minister for infrastructure in Rwanda said that the private sector and financial institutions are key players in boosting clean energy access through solar energy.

"Today more than a half of people still do not have access to electricity. Solar energy has a direct impact on our communities. Accelerating development of the solar industry on the African continent and globally is critical. We need to adopt smart approaches,” he said.

Rwanda seeks to become a middle income country by 2035 and Nsabimana said electricity access is one of the keys to unlock economic growth adding that easing doing business initiative and government subsidies will attract investors to boost access to energy especially in rural areas.

Currently, he said that, thanks to the efforts, 74 percent of Rwandan households have access to electricity of which 50.8 percent are connected to the national grid while about 24 percent are accessing electricity through solar systems.

There is still a need for $600 million (over Rwf610 billion) to ensure 100 percent access to electricity for the entire country’s population by 2024 in Rwanda according to statistics from Rwanda Energy Group.