Hardest-to-Reach Initiative [C165]

OBJECTIVE

Sub-Saharan Africa remains at the centre of the global electricity access challenge, with millions of people still living without electricity. The access gap is increasingly concentrated in least developed countries, fragile contexts and remote rural areas where grid expansion is costly, household purchasing power is low, and traditional investment has not reached sufficient scale. Climate change compounds these challenges. Communities without basic energy services are less able to prepare for, respond to and recover from droughts, floods and other extreme weather events. Many households still rely on kerosene, candles or diesel generators for lighting and charging, which are costly, polluting and harmful to health.

The Hardest-to-Reach Initiative, led by Acumen, supports off-grid solar companies to provide clean energy products and services to underserved and low-income households. Through solutions such as solar home systems and Pay-as-you-go financing, the initiative aims to provide first-time access to modern energy for people who are at risk of being left behind by business-as-usual approaches to electrification. The initiative combines two complementary financing mechanisms. H2R Catalyze provides flexible market-building support through a tailored mix of equity, debt, grants and technical assistance. It helps off-grid solar companies enter and expand in nascent and underserved markets, strengthen local capacity and build the foundations for long-term impact. H2R Amplify is the initiative’s debt vehicle, providing reliable growth capital to off-grid solar companies to scale clean and inclusive energy solutions in underserved markets.

NDF’s contribution supports H2R Amplify through results-based concessional financing and H2R Catalyze through technical assistance. The financing is designed to incentivise off-grid solar companies to reach first-time, lowest-income customers and to go beyond business-as-usual approaches. By linking concessional support to verified impact, the initiative seeks to improve affordability for end-users while demonstrating that clean energy business models can operate in some of the most challenging markets.

The initiative aims to reach 70 million people across 17 countries, including 50 million first-time energy users in areas with some of the lowest electrification rates in the world. It is expected to improve energy security through climate-resilient off-grid solar systems, increase access to climate-relevant information, support income-generating opportunities, reduce reliance on polluting fuels and avoid greenhouse gas emissions.

FINANCING

NDF provides concessional grant financing of USD 10.5 million, including USD 10 million to support H2R Amplify and USD 0.5 million for technical assistance through H2R Catalyze. NDF’s funding is intended to incentivise off-grid solar companies to bring affordable energy to unserved, first-time and lowest-income customers, while supporting positive outcomes on gender, inclusion, adaptation and resilience. H2R has secured USD 250 million in approved and committed capital, including approximately USD 180 million for H2R Amplify and USD 70 million through H2R Catalyze. The initiative brings together public, private and philanthropic partners, including the Green Climate Fund, IFC, Shinhan Bank, British International Investment, Soros Economic Development Fund, Norad, GEAPP and others.