In March 2020, responsAbility announced the launch of a new 3-million-dollar donor-funded technical assistance facility to support local capacity building and market development. With initial funding from Good Energies Foundation and the Swiss State Secretariat for Economic Affairs (SECO), the facility will work to close the financing gap for universal access to clean power in developing countries by strengthening the ways that grant funds can influence larger flows of capital and private investments in climate-friendly companies.
Good Energies Foundation funds organizations and social businesses that work to reverse climate change, supporting programs that provide access to clean energy and protection to tropical forests. The Foundation decided to support the new facility based on strong evidence that technical assistance has the greatest impact on strengthening companies – leading to both growth and follow-on investment.
“We look for ways that our grant funds can influence larger flows of capital such as commercial investment, to increase social impact, for example, in this case, building the distributed renewable sector as a whole,” said Stephanie Jones, Programme Manager for the Energy Programme at Good Energies Foundation.
Similarly, Shine Campaign partner responsAbility is focused on offering technical assistance to strengthen the operations of investee companies as part of its pledge to grow the fund’s renewable energy portfolio in Africa and Asia over the next five years.
The facility will focus on scaling up the renewable energy sector’s reach into last mile communities and contributing to a lower carbon economy. The facility will support market development by:
- Exploring new business models and market opportunities – unlocking further potential for private capital placements through the strengthening of business relationships with companies
- Deploying international best procurement practices – providing additional knowledge and information and supporting investment decisions and structuring of transactions
- Adding value to the market and investee demand – providing a balanced combination of innovative, tailored-made and standardized offers while supporting the development of local energy access markets
A five-year endeavor, responsAbility expects the facility’s projects to reach 66% of the fund’s portfolio companies while also addressing companies in the investment pipeline at-large. Co-financed technical assistance will strengthen the operational capacity of invested or potential portfolio companies, improving investment opportunities, building up the market and contributing to a sustainable energy sector for last mile communities.