Hardest to Reach Expansion Fund (H2R)
The Hardest to Reach Expansion Fund is an "impact first" investment fund aiming to raise USD 180 million from public and private investors to provide concessional loans to finance the operaitons of manufacturers and last-mile distributions of Solar Home Systems and Minigrids in 16 Least-Developped Countries in Sub-Saharan Africa (50% of which are SDC priority countries). By investing into the first-loss share class of this fund, Switzerland de-risks other investors and mobilizes additional capital towards achieving SDGs 7&13, contributing to providing 54 million people in LDCs with clean, off-grid solar energy products.
| Tema | Periodo | Budget |
|---|---|---|
|
Canbiamento climatico ed ambiente Inclusive economic Development
Generazione di energia rinnovabile
Supporto commerciale & inclusione economica Creazione di occupazione |
01.11.2025
- 31.10.2035 |
CHF 6’630’000
|
- Settore privato straniero Nord
- Acumen (Acumen H2R Expansion Fund LP: Guernsey limited partnership)
-
Settore in base alle categorie del Comitato di Aiuto allo sviluppo (DAC) dell'OCSE ENERGY
BUSINESS & OTHER SERVICES
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
Sotto-Settore in base alle categorie del Comitato di Aiuto allo sviluppo (DAC) dell'OCSE Energy generation, renewable sources - multiple technologies
Business support services and institutions
Politica occupazionale e gestione amministrativa
Tipo di aiuto Contributo al progetto e al programma
Numero del progetto 7F11623
| Contesto | In 2020, 733 million people were still living without access to affordable, clean electricity, of which 298 million people were in nascent off-grid solar (OGS) markets where there is little commercial OGS activity. Approximately 70% of this number have the ability to pay but live in areas deemed too remote or too risky to be served by traditional grid extensions and business as usual approaches in these markets. There are multiple barriers that prevent access to alternative forms of energy access, such as OGS, namely, a funding gap, as the OGS market for the most deprived customers is considered highly risky. Potential customers are offen amongst the poorest in a country, and few of the have financial track records, making credit underwriting difficult. Taken together, these barriers lead to a lack of access to capital, in turn leading to OGS companies being underfunded, and to markets stagnating, rather than growing rapidly in response to the clear needs of the rural populations where energy access is lowest. |
| Obiettivi |
Increased access to patient, impact- linked working capital and technical assistance for clean energy compagnies operating in 16 Least-Developed Countries in Sub-saharan Africa, thereby scaling access to affordable clean energy for low-income populations in these countries, contribution to SDG 5, SDG 8, SDG 7 and SDG 13. By scaling access to affordable clean energy to 10.8 million housholds, H2R aims at impacting 54 million people, of which 75% are expected to access solar energy for the first time, with a specific focus on women. A total of 101 megawatts of decentralized renewables capacity will be installed, saving 3.7 million tons of CO2 emissions, and creating 11'000 clean energy jobs in the process. |
| Gruppi target | People, particulary women, living below the international World Bank poverty line of USD 3.20 per person per day, who lack access to clean energy in the Democratic Republic of Congo, Uganda, Burundi, Zambia, Malwi, Mozambique, Lesotho, Guinea-Bissau, Guinea, Sierra Leone, Burkina Faso, Togo, Benin, Niger, Chad and Somalia. |
| Effetti a medio termine |
1. Low-income customers in 16 LDCs have access to clean energy for the first time, diversify their incomes, save costs, and reap productivity and health benefits. 2. OGS compagnies provide more off-grid solar energy products such as solar home systems to low-income customers via pay-as-you-go mechanisms. 3. Increased investments and improved enabling environment in the off-grid solar sector in 16 LDCs thanks to capital mobilized by H2R and increased financing of pay-as-you-go account receivables facilities. |
| Risultati |
Risultati principali attesi: 1. OGS compagnies are enabled and incentivized to initiate or expand operations in 16 LDCs due to the availability of impact- linked loans, where interest rates are subsidized based on the impact achieved in terms of first-time energy access and poverty level of customers. 2. OGS compagnies operating in 16 LDCs receive TA on Consumer Protection, ESG, Gender, Enterprise Development, eneabling them to responsibly provide pay-as-you-go products to low-income customers. 3. H2R fund has invested in facilities to finance the acquisition of pay-as-you-go solar home system accounts receivables from businesses operating in selected target countries, improving the viability of serving low-income customers. Risultati fasi precedenti: Over the last three years, E+E has used its "investment credit" to provide de-risking through first-loss participations in three structured funds, i.e. the BUILD Fund (structure fund providing debt financing to SMEs mainly in LDCs), N3F (structured fund providing debt financing to SMEs active in the nutrition space in Sub-Saharan Africa), and W2AF (structured fund providing equilty financingto innovative water companies in developing countries). Although these are long-term endeavours, such investment experience have helped E+E to develop selection criteria for future investments. Based on an internal call for proposals, a selection committee back-stopped by an external expert has identified H2R as the best proposal for 2024 in terms of impact potiential and mandate fit for SDC. |
| Direzione/Ufficio responsabile |
DSC |
| Partner del progetto |
Partner contrattuale Economia privata |
| Coordinamento con altri progetti e attori |
- COGEA/CEI Africa (productive use of energy) -SEforALL, (access to sustainable, affordable and efficient cooling) - Energizing Development Initiative (EnDev), access to clean cooking - ILF-CLAC (best practices on impact-linked finance) - ILF-Collaborative (best practices on impact-linked finance) - Green Climate Fund (Switzerland being a member) |
| Budget | Fase in corso Budget Svizzera CHF 6’630’000 Budget svizzero attualmente già speso CHF 0 Progetto totale dalla prima fase Budget Svizzera CHF 0 Budget inclusi partner del progetto CHF 6’630’000 |
| Fasi del progetto | Fase 1 01.11.2025 - 31.10.2035 (Fase in corso) |
