Hotspot Network, Nigeria
Green Finance for Sustainable Rural Telephony
Local Currency Blended Climate Finance for Off-Grid Energy Access in Nigeria.
Leveraging Green Finance to Unlock Universal Energy Access for Productive Use, One Community At A Time.
Climate Finance Blending Facility will be the first of its kind to receive certification under the Electrical Grids and Storage criteria by the Climate Bonds Standard.
Leveraging Green Finance to Unlock Universal Energy Access for Productive Use, One Community At A Time.
About Climate Facility
The Climate Finance Blending Facility (the “Facility”) is a catalytic first loss multi-donor facility seeded with £10 million concessional funding by the UK Foreign, Commonwealth & Development Office (“FCDO”) to mobilise additional funding from development partners to co-finance off-grid clean energy investments alongside InfraCredit’s local currency guarantees in Nigeria.
Anchor Funder
Co-Financing Partner
Domestic Institutional Investors
Theory Of Change
Our investment decision-making process is based on thorough due diligence.
Unlock affordable financing for private sector enterprises providing off-grid energy solutions such as solar mini grids, solar home systems, solar lanterns, fridges, pumps, driers and clean cooking products, small medium enterprise coolhubs for unserved and underserved markets.
Catalyse green investments in local currency from domestic private institutional investors such as insurance companies, local pension funds, and other asset managers including low carbon energy focused funds from the domestic debt capital markets.
Innovative blended finance approach for donors and concessional financiers, to make smart use of impact-seeking capital to de-risk, reduce the capital cost and mobilise private sector financing towards increasing clean energy access in Nigeria in line with Nigeria’s Nationally Determined Contributions.
URBAN PIPELINE
The Urban Pipeline will report on energy access, number of connections, MW installed and private finance mobilised, and will have a positive contribution to the following United Nations Sustainable Development Goals (SDGs)
EXPECTED IMPACT
Recent Projects
Climate Finance Blending Facility will be the first
The project will construct, install and commission solar powered base stations (sites) in 120 communities across 22 States in Nigeria. Hotspot is a telecommunication infrastructure and solar-powered rural telephony network provider, using renewable energy and climate-smart technology in operating telecom sites in off-grid rural parts of Nigeria. Under the Project, Hotspot established the special purpose vehicle, Micropolitan Mobile Connectivity Limited to raise local currency finance from the debt capital markets, to build, own, and operate solar-powered mobile network base stations in select rural communities in collaboration with MNOs in Nigeria.
Darway Coast is a renewable energy company with expertise in the provision of hybrid solar mini-grid and micro-grid solutions for residential, commercial, and industrial customers in off-grid and underserved areas within Nigeria. Incorporated in 2015, the Company has deployed four mini grids serving four communities in Imo State (3.3kW), Lagos State (50kW), and Rivers State (38kW) under ten-year PPAs. Using a “Pay-As-You-Go” business model and smart meters, Darway Coast can manage these customers using a remote monitoring system that helps regulate demand, detect, and resolve issues swiftly as well as implement remote disconnections and reconnection.
Geographical Distribution
Collectively, off-grid renewable energy projects located in 35 states across the six geo-political zones in Nigeria have been approved for co-financing by the Facility.
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Communities
Aiming For Net Zero
The Facility will use its impact seeking capital to blend the cost of Eligible Green Projects aimed at fulfilling two main environmental objectives: climate change mitigation and energy transition to a low-carbon economy.
The Green Financing Framework guides the process for identifying, selecting, verifying, and reporting on the sustainable projects that are eligible for financing through the Facility, including its specific use and management.