- Solar PV
- Business model
Contract signature date: 29 March 2019
Region: Sub Saharan Africa
Sector: Solar PV
Total ElectriFI financing: USD 3m
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Brief description of the client and project
Arnergy is a leading provider of solar photovoltaic and storage solutions to SME’s in Nigeria. To date the company has installed more than 1.5 MW of photovoltaic solar modules to commercial Nigerian customers providing them with a clean, affordable and reliable source of electricity that will allow them to considerably reduce the recourse to expensive and polluting diesel generators. Arnergy sells its power and storage solution via three different contractual arrangements from cash sale to long term renting, therefore meeting the requirements of different types of customers.
Funding will be utilized over the next two years to provide finance for expanding the customer bases and deploy up to 14 MW of photovoltaic solar panels and 35 MWh of storage.
Why ElectriFi wants to fund this project
Access to a reliable and affordable source of energy continues to hold back the development of SME’s in Sub Sahara Africa and in Nigeria in particular. By joining the equity raise, ElectriFI will contribute proving the scalability of the product and of the business It is also a unique opportunity to back promising local entrepreneurs.
Environmental and social rationale: Which IFC PSs are triggered and the rationale behind it
This investment is categorised as B.
Activities come with potential limited adverse risks associated with waste management and labour conditions.
IFC Performance Standards 1 to 3 may be triggered. If so, risks and impacts will be addressed accordingly through EHS management plans and procedures.