ElectriFI is an impact investment fund with a mandate to invest in early stage, private enterprises – companies and projects – that increase access to and supply of sustainable energy in developing countries.
To be eligible to apply for an investment from ElectriFI, the prospect should meet the following criteria:
- Located in or proceeds to be used in a country on the DAC list.
- Privately held (at least for the majority of the shares or voting rights) with for-profit structure.
- Business activity involved in generating electricity (on-grid or off-grid), with the aim of creating or improving access. This must be supported by new connections (direct and indirect) and/or increased capacity (in MW or MWh) of the available energy mix in the country.
- Use of renewable energy technologies: All technologies are eligible except first generation biofuels. The combination of renewable and conventional generation technologies can be considered if required for the stability of the produced energy.
- Stage of active development: ElectriFI is does not provide seed capital and does not fund projects in pilot stage. Market analysis and feasibility studies must have been completed, all required permits in order, land secured, allowing for the financial close to be achieved in relatively short term.
- Demonstrate additionality: ElectriFI’s investments should not replace or compete with other investors, but rather bring risk capital at an early stage to allow teams, business models and technologies to build track record and to induce other investors to also consider funding. ElectriFI’s investment seeks to enable companies and projects to roll out their business on a scale, within a timeframe, in a location, or up to certain standards that would not have been possible without such investment.
- Have extra sources of funding: ElectriFI funding must be instrumental in the fundraising, but should not exceed 50% of the total funding round and project costs.
- Meet minimum environmental and social norms as well as KYC standards as commonly applied by the European DFIs (Developing Finance Institutions).
The ElectriFI investment team will only consider applications that meet the eligibility criteria described above. When evaluating the project, the team will look at the following aspects (non-exhaustive):
- Track-record: The Sponsor must demonstrate credible professional track record, strong commitment to date and a capacity to deliver.
- Alignment of interest: The sponsor is expected to participate in the equity of the company/project.
- Financial sustainability: Demonstrate the project’s capacity to generate revenues to support debt service and provide adequate returns to investors.
- Replicability and scalability: Especially in the case of innovative business models or an innovative structuring of investments.
- Anticipated impact of the project: measured by impact indicators including number of new connections created (and with a minimum of 1,000); number of beneficiaries; MW of capacity added and MWh of electricity produced; tons of CO2 equivalent greenhouse gases avoided (tCO2eq/y); direct employment created; indirect employment created; effective leverage factor; etc.