In a significant effort to address energy poverty in Sub-Saharan Africa, the United Nations Development Program (UNDP) has unveiled a new initiative under its Africa Promise Strategic Plan. The initiative aims to provide clean and affordable energy to 500 million people across the region, which currently has about 600 million people lacking such access.
“In Zimbabwe, a significant urban-rural disparity exists when it comes to access to electricity. A large proportion of the rural population still lacks access to electricity,” said UNDP.
UNDP Zimbabwe has secured a $1.5 million grant to accelerate the availability of sustainable energy. Collaborating with the Ministry of Energy and Power Development, the Rural Electrification Fund, and the Zimbabwe Energy Regulatory Agency, UNDP is set to implement impactful energy projects.
The National Renewable Energy Policy of 2019 acknowledges the high costs of renewable energy projects and this necessitates a balance between economic viability and affordability. “The policy outlined a number of Incentives for Promoting Investment in Renewable Energy in Zimbabwe. One such instrument is the Viability Gap Funding to increase electricity access by developing off-grid community projects in rural areas,” UNDP highlighted.
The $1.5 million grant will fund two solar mini-grid projects, offering up to a 50% subsidy on capital expenditures. This catalytic funding UNDP says will support pre-feasibility studies and five full feasibility studies of prioritized solar mini-grid sites. The initiative will also enhance the Viability Gap Funding mechanism, increasing the bankability of renewable energy projects.
By 2020, this effort is expected to light up 150 households and institutions, expanding to 350 more households by 2023 and 2024. This partnership between the government and private sector showcases innovative financing models with significant impact potential.
“Energy is the driver for economic development over the world. The better the quality and quantum of energy available to an economy, the brighter its prospects are,” said UNDP.
The provision of renewable energy the development agency said will directly and positively impact at least 10 Sustainable Development Goals (SDGs), promising a transformative future for Zimbabwe and the broader region.
