Call for Proposals in Mozambique to accelerate Clean Off-Grid Energy Access
The re-launch of the call for proposals in Mozambique (BGFA2) aims to incentivise private off-grid energy service companies to scale up their innovative sustainable businesses and accelerate access to affordable and clean off-grid energy for customers in peri-urban and rural areas of Mozambique at specified sites agreed by the Government of Mozambique.
The Mozambique country programme, funded by Sweden, has been developed in collaboration with the Government through FUNAE (Fundo de Energia) and the Energy Regulatory Authority (ARENE).
Standalone solutions can only be offered as complementary solutions to Micro/Mini-grid-based solutions for customers that will not be connected to the Micro/Mini-grid(s) at the specified sites. Projects exclusively proposing the deployment of Standalone solutions are not eligible for BGFA2 funding.
The Beyond the Grid Fund for Africa (BGFA) finances sustainable development outcomes by supporting the creation of local off-grid energy business and offering results-based financing combined with targeted technical assistance to private off-grid energy service providers (ESPs) and other market stakeholders, including the local government, with the aim to:
accelerate access to renewable and clean off-grid energy for customers in periurban and rural areas of Mozambique at specified sites;
make high quality off-grid products and services affordable for customers;
unlock early structural challenges in the market;
build business, customer and investor confidence;
support the creation of new business and job opportunities;
mobilise additional climate finance at scale; and
support sustainable development.
The indicative individual contract size per Minigrid cluster (concession area) is expected to be between EUR 2.0 and EUR 2.5 million, but there is no formal cap on the application amount. ESPs are allowed to bid for multiple Mini-grid clusters. Separate application is required per cluster.
To receive BGFA financing, ESPs must at a minimum:be a for-profit company/entity;demonstrate relevant experience in Mozambique or other relevant subSaharan African market(s) in the proposed project structure;be legally incorporated and validly existing in Mozambique or willing to be so within a reasonable time frame before BGFA contract signing;have a bank account in a Mozambican bank, acceptable to Nefco;make timely minimum matching co-financing available (with a minimum ratio of 1:1);comply with national laws and regulations, including tax and stamp duty laws and regulations, relevant for the off-Grid sector in Mozambique and in their operations;be willing to comply with the BGFA-specific and the national e-waste, sustainability, gender, security and consumer protection requirements as applicable when implementing the proposed project;engage in the development of long-term sustainable, local off-grid markets.
Applicants applying for BGFA2 funding must be for-profit ESP limited liability companies/entities selling energy and/or energy-related productive use of energy (PUE) services to end consumers. Applicants must already be legally incorporated and validly existing in Mozambique or commit to being incorporated and registered as such to Nefco’s satisfaction prior to contract signing. Individual persons or groups of persons (who are not legally incorporated and registered as a limited liability company in the Project Country) are not eligible for BGFA2 funding.
Applicants are allowed to enter into various types of project implementation partnerships with for-profit and non-profit entities, community-based organisations and other non-commercial entities.
The Applicant must demonstrate:turnover11 of at least 15% of the requested BGFA Funding but, in any case, a minimum of EUR 300,000 during the last fiscal year or existing equity matching the requested BGFA2 fundingcurrent ratio with a minimum value of one or higher.