Applications open for USADF Off-Grid Energy Challenge

Deadline Date: December 12, 2024

Donor Name: United States African Development Foundation

Grant Size: $100,000 to $500,000

https://www.usadf.gov/Off-Grid-Energy-Challenge-2025

The United States African Development Foundation (USADF) is excited to request proposals for the Off-Grid Energy Challenge.

Focus Areas

• Projects are to be focused on increasing sustainable energy access, specifically off-grid solutions, and extending the delivery of electrification to unserved and underserved communities in Africa. The type of clean energy technologies to be proposed may include, but are not limited to, solar power, hydropower, wind power, biomass, biogas, gas, energy storage, and hybrid systems. Productive use applications in cross-sector areas like agriculture and agri-business, healthcare, education, ICT, and other commercial and industrial activities are highly encouraged.

Project Categories

• Project categories that will be considered:
  • Agriculture – Energy Nexus: Off-grid energy solutions for mechanization of agriculture value chain processes such as grain milling, oil expelling, refrigeration, transport, etc. Solutions are to explain clearly how they will be commercially viable. It is expected that the use of the power will address business solution(s) that will generate ongoing revenue and profits to sustain the enterprise. This must be clearly explained in the proposal.
  • Healthcare – Energy Nexus: Off-grid energy solutions focused on financially sustainable improvements of healthcare service and delivery like healthcare facilities electrification (HFE), vaccine storage and distribution, etc. Off-grid energy solutions for processes and activities related to Water, Sanitation and Hygiene (WASH) will also be considered.
  • Women-in-Energy: Entities in this category must have majority female ownership AND the top manager(s) must be female, and/or the majority of the intended beneficiaries must be female. This category is open to women entrepreneurs and innovators with projects focused on increasing sustainable energy access – particularly off-grid solutions – extending the delivery of electrification to unserved and underserved communities in the target countries, with a particular focus on un-served and underserved women. In addition, women led, or managed companies focused on developing clean energy solutions, capacity building or skills education will also be considered.
  • Other Energy Nexus: Financially sustainable off-grid energy solutions for cross-sector areas like education, ICT, construction, manufacturing, mining, etc. will be considered
  • Mini- and micro-grids: Small-scale generation systems for electrification that provide a sustainable alternative to, or an enhancement of national/regional grid-connected electric transmission
  • Productive use: Off-grid energy solutions for commercial and industrial activities and/or processes including utilization of energy in machinery, factories, or in any activity that enhances productivity outcomes and increases income generation for the beneficiaries
  • Stand-alone and Home systems: Off-grid energy systems installed directly in the homes and/or businesses of unserved or underserved consumers, which supply energy directly to communities currently (and in the foreseeable future) lacking access to energy. Focus must be on distribution systems that are cost-effective, scalable, replicable, and affordable
  • Innovations and Renewable Energy value chain: This category is open to applicants to identify innovative technologies that will advance an increase in energy access across the energy value chain. Proposals need not necessarily be for power generation only; they may also include the provision of innovative metering, payment systems, e-mobility, energy storage, or other enabling technology across the energy value chain. If it is an innovation, then a simple and clear explanation must be provided to convey why/how the innovation is important and what it will do for the sector or the population.

Benefits

• Winning applicants will receive:
  • Grant capital up to $250,000 from USADF
  • Access to intensive local technical assistance and governance support

Eligibility Criteria

• USADF will consider proposals from African-owned and managed companies or organizations (including nonprofit and not-for-profit organizations). Passports or other government-issued IDs of all owners and senior managers must be submitted with the applications. If the applying entity is owned wholly or in part by another entity, passports or other government-issued IDs of its owners must also be provided. The applying entity must not be government-owned, operated, or affiliated in any way nor may be the beneficiaries of the project. Applicants may be developers of their own technology and/or may be acquiring and implementing technology developed elsewhere. Applicants need to be legally registered in Africa and demonstrate the capacity to track and manage the project resources and operate in good standing with the local governments where they operate.
• Winning proposals must:
  • Further develop, scale up or extend use of proven technologies for off–grid energy in Africa
  • Benefit underserved, low-income rural, urban, or peri-urban populations currently underserved by utility companies, ideally with a focus on benefits to women and girls 
  • Demonstrate financial sustainability or the potential for financial sustainability and independence over time and beyond the project implementation lifetime. The proposed investment period must include at least three months of revenue from sales of energy/electricity generated
  • Demonstrate a proven track record of experience or have project sponsors or partners with a proven track record of related experience
  • Propose a grant budget of no more than US$250,000. Proposals with budgets greater than US$250,000 must bring leveraged resources from one or more other sources that meet the total financing requirements. Leveraged funds from other private sector and donor sources are encouraged
  • Demonstrate clearly whether and how many new connections will be added, as well as the potential for future replication. A “new connection” is defined as a new mini-grid connection or home system installed
  • Proposals leveraging wind, hydro, biomass, and gas as the energy source are greatly encouraged
  • Productive use applications in the agriculture and agri-business, commercial, and industrial sectors are highly encouraged
  • Women-owned or -managed business is a plus
  • Proposals from the following countries are highly encouraged and will be given priority consideration: Burkina Faso, Burundi, Côte d’Ivoire, Democratic Republic of the Congo (South Kivu), Liberia, Malawi, Mauritania, Senegal, Somalia, South Sudan, Zambia
• Applications will only be considered if they:
  • Are African-owned and passports or other government-issued IDs showing citizenship are submitted
    • Majority of shareholders, members of the board and senior management must be citizens of a sub-Saharan African country
  • Express clearly how they will benefit marginalized, grassroots people in Africa, including showing demonstrable positive impacts for female beneficiaries
  • Express clearly how they will achieve profitability and sustainable growth
  • Are fully and legally registered in Africa, and the registration is submitted
  • Document adequate expertise in the field they are proposing or document how they will acquire the necessary expertise
  • Clearly document how they will use USADF grant capital to carry out their concept

For more information, visit United States African Development Foundation.