Sierra Leone’s rural electrification strides are set to significantly improve with the introduction of a results-based financing (RBF) model to accelerate the deployment of solar mini-grids across the country. The innovative approach will provide grants to private mini-grid developers and operators, disbursed upon verification of key milestones such as the number of households connected to the grid.
The initiative, implemented by Sustainable Energy for All in partnership with the United Nations Office for Project Services (UNOPS), aims to electrify 35,000 households. The European Union is providing €20 million ($20.6 million) in funding for the project. Private developers will finance, build, own, and operate the minigrids, ensuring long-term sustainability and scalability.
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“The use of RBF for the rollout of solar minigrids is an important step for Sierra Leone,” said EU Ambassador to Sierra Leone Jacek Jankowski. “As the RBF mechanism is scalable, it has the potential to lead to a palpable acceleration in rural electrification.”
What are solar minigrids?
Solar minigrids are small-scale, decentralised energy systems that generate, store, and distribute electricity to a localised community using solar panels and battery storage. These systems are particularly effective in rural and off-grid areas, where extending the national grid is impractical. The benefits of solar minigrids include reliable and clean energy access, reduced reliance on expensive diesel generators, and the promotion of economic activities by powering businesses, schools, and healthcare facilities.
A scalable approach to rural electrification
The Sierra Leone Ministry of Energy has identified 703 potential sites for minigrid development through its national online electrification database. Currently, the country boasts over 100 operational solar minigrids managed by private sector portfolios. With the new RBF framework, the government hopes to significantly expand this number, leveraging private sector investment to bridge the energy gap in underserved rural areas.
The European Union, a key partner in the initiative, is collaborating with the government to establish access requirements for RBF grant funds. These include transparent procedures for selecting developers and operators, ensuring equitable distribution of resources and effective project execution.
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Driving solar adoption and sustainability
Sierra Leone’s commitment to renewable energy is reflected in its growing solar capacity. According to the International Renewable Energy Agency (IRENA), the country had deployed 9 MW of solar power by the end of 2023. Financing was secured for a 50 MW solar project in December 2023, signaling the country’s ambition to scale its clean energy initiatives.
The results-based financing model represents a transformative step in Sierra Leone’s energy journey, offering a scalable solution that aligns with global goals for sustainable development. By incentivising private sector participation and ensuring measurable outcomes, the initiative promises to boost rural electrification, improve living standards, and stimulate economic growth.