Off-grid and mini-grid solar solutions

Off-grid and mini-grid solar solutions

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Off-grid and mini-grid solar solutions
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Provide off-grid and mini-grid solar solutions through lease-to-own model or direct sale of electricity to customers.

Expected Impact

Enable access to electricity at lower costs for rural communities..

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Climate Action (SDG 13)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10) Sustainable Cities and Communities (SDG 11)
Sector Sources
  • 1) Ministry of Infrastructure (2017). Draft Energy Sector Strategic Plan 2018/19 - 2023/24. Republic of Rwanda. 2) Republic of Rwanda (2017). 7 Years Government Programme: National Strategy for Transformation (NST 1) 2017 – 2024 Final. 3) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. 4) World Bank database. https://data.worldbank.org/ 5) Power Africa Off-grid Project (2019). Off-Grid Solar Market Assessment - Rwanda. 6) Abrams, C. (2016). Rwanda – A Case Study in Solar Energy Investment. https://www.jstor.org/stable/26256477?seq=1 7) African Development Bank (2013). Rwanda Transport Sector Review and Action Plan. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Rwanda_-_Transport_Sector_Review_and_Action_Plan.pdf
IOA Sources
  • 8) Energy Private Developers (2019). Rwanda Off-grid sector status report 2018. https://www.urwegobank.com/wp-content/uploads/2019/09/EnDev_Off-Grid-Sector-Status-Report_2018.pdf 9) Nigerian Economic Summit Group (2018). Minigrids Investment Report: Scaling The Nigerian Market 2018. 10) German Energy Solutions (2018). Presentation on Nigeria's off-grid renewable energy market and investment potentials. https://www.german-energy-solutions.de/GES/Redaktion/DE/Publikationen/Praesentationen/2018/181120-iv-nigeria-ohiahre-rea.pdf?__blob=publicationFile&v=3 11) PwC analysis based on Prof. A. Damodaran data, 2020. 12) Intermountain Wind and Solar. Off-Grid Solar Energy Systems — Pros and Cons. https://www.intermtnwindandsolar.com/off-grid-solar-energy-systems-pros-and-cons/ 13) Ministry of Infrastructure (2014). Sustainable Energy for All Rapid Assessment and Gap Analysis. https://www.se4all-africa.org/fileadmin/uploads/se4all/Documents/Country_RAGAs/Rwanda_RAGA_EN_Released.pdf 14) Gündoğan, B. and Koçar, G. (2019). An Overview On The Environmental Impacts Of Photovoltaic Panel Production. Conference Paper. https://www.researchgate.net/publication/330683286_AN_OVERVIEW_ON_THE_ENVIRONMENTAL_IMPACTS_OF_PHOTOVOLTAIC_PANEL_PRODUCTION 15) Klugmann-Radziemska, E. (2011). Environmental Impact of Photovoltaic Technologies. Low Carbon Earth Summit, 19-26 October 2011. 16) Sani, G., Sahabi, S. and Ibrahim, A. (2019). 'Renewable Energy: Environmental Impacts And Economic Benefits For Sustainable Development', International Journal of Engineering and Technical Research, V8(08). https://www.researchgate.net/publication/335653305_Renewable_Energy_Environmental_Impacts_and_Economic_Benefits_for_Sustainable_Development 17) Bloomberg New Energy Finance (2016). Rwanda Simplified Licensing Procedure for Off-grid Renewable Energy Projects - Policy Overview. http://energyaccess.org/wp-content/uploads/2016/06/Rwanda-simplified-licensing-procedure-for-off-grid-renewable-energy-projects-_-Bloomberg-New-Energy-Finance.pdf 18) World Bank (2020). Rwanda - Energy Access and Quality Improvement Project. https://www.worldbank.org/en/news/loans-credits/2020/09/17/rwanda-energy-access-and-quality-improvement-project 19) Rwanda Development Board. Investment Opportunities. https://rdb.rw/investment-opportunities/energy/#tab-1-3 20) Rwanda Development Board (2015). The Law on Investment Promotion and Facilitation. 21) National Institute of Statistics in Rwanda (2019). Rwanda Statistical Yearbook 2019. 22) Energy Private Developers (2020). Rwanda Energy Sector Annual Report 2019. https://www.epdrwanda.com/wp-content/uploads/2020/05/2019-ENERGY-SECTOR-REPORT.pdf 23) Republic of Rwanda (2019). Voluntary National Review Rwanda 2019. https://sustainabledevelopment.un.org/content/documents/23432Rwanda_VNR_Document__Final.pdf 24) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. https://dashboards.sdgindex.org/profiles/RWA 25) Sustainable Energy for All. Rwanda. https://www.se4all-africa.org/seforall-in-africa/country-data/rwanda/ 26) Azuri (2021). Rwanda's first PayGo solar power heads towards success. https://www.azuri-group.com/rwandas-first-paygo-solar-power-heads-towards-success/