In the last decade, energy access firms have made remarkable progress in mitigating climate change and reaching people, businesses and social institutions with low carbon energy, especially those who are operating out of sub-Saharan Africa and many parts of Asia. But, that progress is now hindered and could possibly be reversed because of COVID-19 related disruptions.
Even after 1.5 years after the onset of COVID, it has become evident that companies are facing problems because of intermittent lockdowns and its resultant economic fallout, and supply chains disruptions. As a result, many companies are seeing reduced sales and collections, increasing cost of goods, limited cash reserves, and tightening funding resources.
Intended to save the gains made by the energy access sector in the last decade, the Energy Access Relief Fund is mandated to support those energy access companies that are facing disruptions caused by COVID.
The Energy Access Relief Fund
The Energy Access Relief Fund (EARF) has been designed to provide up to 3.5-year tenure, subordinated,unsecured, and low-cost subsidized loans to companies companies that had viable business models prior to COVID and that are facing liquidity challenges due to COVID-19.
The fund intends to focus on the smaller to mid- sized energy access companies that are addressing the needs of the bottom of the pyramid consumers and expects to make about 100-110 loans. While the fund will seek to be as inclusive as possible, its primary focus is expected to be on loans of less than $1M, within a range of $50K to $2.5M.
