The Clean Energy Bank for Smallholder Farmers aims to enhance income and as an extension quality of life for smallholder farmers in Nigeria, as well as increase clean energy access. It is a micro-finance facility that offtakes smallholder produce, returning renewable energy systems for homes, for productive use – solar irrigation pumps, crop dryers, etc., and credits from sale of the produce.
There is significant energy shortage in Nigeria. Homes and businesses make up this gap by using petrol & diesel generating sets. In addition, due to climate change, some parts of Northern Nigeria are vulnerable to drought. This affects smallholder yields, impacting their livelihoods. Lack of access to energy and difficulties linking products to markets also places a cap on their earnings and quality of life.
This instrument aims to accelerate clean energy access, and at the same time enhance crop production and sales for smallholder farmers in Nigeria. It is a system that aggregates produce from smallholders at harvest, and sells it off to off-takers. In exchange for the produce, the farmers receive 1. solar systems to power their homes which will be paid off on lease from produce sold; 2. renewable energy tools for agriculture such as solar irrigation systems, crop dryers, etc; and 3. income for the produce sold.
The proponent, Prado Power, estimates that the market opportunity of this instrument is $70 million per year.
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Investor initiative chooses ideas that will mobilize investment for sustainable cities, energy access, blue carbon, and sustainable agriculture in developing countriesMarch 5, 2019
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