Solar Securitization for Rwanda aims to support Rwanda’s national goal of 100% energy access by 2024. Solar asset-backed securities, first of their kind for Rwanda, will drive needed finance to accelerate the Rwandan solar sector, by decreasing investor risk perception, and diversifying and expanding the pool of investment.
Rwanda has a national target of providing 100% energy access for the approximately 2.5 million Rwandan households by 2024, primarily through off grid solar solutions. However, the country has faced difficulties in attracting capital to finance solar investments. The sector is perceived as high risk, with a relatively new technology and a client base with little or no credit history.
Solar Securitization for Rwanda aims to accelerate deployment of solar energy by creating solar asset-backed securities, the first of their kind for Rwanda. They will be created through the bundling of receivables from solar developers, freeing up working capital of solar companies to increase deployment. The securities will target different types of investors, lowering the risk perception of the sector and diversifying and expanding the pool of investment for solar energy.
The proponent, the Development Bank of Rwanda, aims to support Rwanda’s national goal of 100% energy access by 2024. The impact of achieving that goal will be 750,000 tons of greenhouse gas emissions avoided every five years, increased literacy and other benefits of household energy access, and reduced pollution and improved respiratory health.
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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
LONDON – The Global Innovation Lab for Climate Finance, an investor-led initiative that identifies, develops, and launches promising solutions to drive critical investment to action on climate change in developing countries, has selected its top six ideas for 2019. At a time when large-scale action on climate change is more urgent than ever before, the […]
Benjamin Nyakeriga, The Development Bank of Rwanda