Lack of access to insurance a barrier to greater solar deployment across Africa

Lack of access to insurance a barrier to greater solar deployment across Africa

A new study outlining solutions to overcome key affordability and investment challenges holding back off-grid solar investment across Africa reveals that access to insurance remains one of the barriers to deployment of solar solutions.

The European Investment Bank and the International Solar Alliance report today examines off-grid solar investment across Africa and assesses how investment barriers including affordability, equipment supply, access to working capital, regulatory challenges, insurance and technical expertise influence and hinder deployment.

“Increased use of off-grid solar technology across Africa is essential to harness clean and affordable energy and transform the lives of millions of people. The new European Investment Bank and International Solar Alliance study combines experience and expertise from successful off-grid deployment to outline how investment can be unlocked to increase access to solar power. The ground-breaking analysis demonstrates how closer cooperation between African, European and global partners can unlock investment and technical barriers that hold back sustainable development and the green transition.” said Ambroise Fayolle, European Investment Bank vice president.

“The joint International Solar Alliance – European Investment Bank study outlines a pathway to unlock access to off-grid solar in Africa. This builds on proven success, expert insight and commercial experience to identify and overcome investment gaps and financial barriers holding back off-grid solar. The study details what can be done to increase access to clean energy to off-grid rural areas including refugee camps, urban areas and remote villages across Africa.”  added Dr Ajay Mathur, Director General of the International Solar Alliance.

At present more than 120 million households across Africa lack access to reliable and affordable energy, with 60 million households expected to remain without electricity by 2030 unless urgent action is taken.

The new in-depth overview of recent private sector led deployment of small-scale solar energy systems across sub-Saharan Africa identifies five key challenges that can be addressed to unlock high-impact local energy investment essential for sustainable development and economic growth on the continent.

The study, based on detailed consultations in Uganda, Rwanda and Nigeria and analysis of off-grid markets across the region, provides recommendations for effective intervention to scale up off-grid solar deployment depending on specific local issues.

Sharing best-practice that allows investment and technical barriers holding back off-grid solar is key crucial to scale up off-grid solar, allow vulnerable and remote communities to access clean energy and deliver the sustainable development goal of universal access to reliable and affordable energy.

This includes examining how off-grid solar investment has benefited refugee communities in Uganda and enabled cost-effective energy access in Nigerian cities.

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