ImpactAlpha, June 11 – Rural electricity has often required subsidy. The self-sufficient electricity grids known as mini-grids are no different, say a dozen impact investors with $2 billion under management.
Investors including Acumen, Blue Haven Initiative, and Ceniarth, as well as Engie Powercorner, Responsability and KawiSafi Ventures are calling on donors and governments to provide results-based financing to subsidize rural connections that could provide access to 450 million people, mostly in Africa, by 2030.
“We are ready to be the private capital needed to invest alongside those RBF subsidies,” wrote the group in a public position paper. “And we believe those subsidies will decline over time as the business model and technology continues to improve with scale, just as they did for wind and solar.”