By Hauwa Ali
US-based Acumen has launched a $25 million initiative to support the productive use of energy Africa and India.
The new initiative is to support climate change mitigation and adaptation in Africa as well as strengthen livelihoods in Africa and India through the use of solar photovoltaic energy.
The New York-based organisation is achieving this by Powering Livelihoods Using Solar (PEII+),and it is supported by the Ikea Foundation, the Charles and Lynn Schusterman Family Philanthropies, the Autodesk Foundation and the Distributed Power Fund.
The PEII+ aims to support start-ups that provide solar-powered appliances, such as windmills, irrigation pumps, and refrigerators.
The $25 million dollar initiative will invest early-stage capital in companies that provide renewable energy-powered appliances–from mills and irrigation pumps to electric motorbikes and refrigerators–to microentrepreneurs and smallholder farmers in India and East and West Africa. The goal is to leverage these technologies to boost incomes and climate resilience in vulnerable communities.
“The United Nations has urged countries to eliminate energy poverty by 2030 as energy access influences many factors people need to live a decent quality of life. That’s why we’re championing our long-term partner Acumen’s PEII+ programme that will invest in expanding the market for renewable energy solutions. These solutions will support families living in poverty to increase their incomes by sustaining their farms and businesses or by providing entrepreneurship opportunities in mobility, food processing and food storage businesses,”explains Biswarup Banerjee, the programme manager (renewable energy) at the Ikea.
According to Acumen, its PEII+ programme is strategically aligned with the commitments of the Global Alliance for Energy and the Planet (GEAPP).
The initiative has received additional funding from UK Aid from the UK Government through the Transforming Energy Access (TEA) platform.
“The majority of the world’s poor people are rural and young, and living without access to affordable and sustainable electricity is a major impediment to rising out of poverty. Renewable energy-powered appliances have the potential to more than double incomes by saving time, improving yields, and enhancing resiliency.” A statement released by Acumen read.
“A solar-powered water pump can be game-changing for a smallholder farmer who depends on costly diesel generators to irrigate their land. Likewise, a solar-powered refrigerator can augment business income for a small shop owner who can keep fish, poultry, dairy, and beverages cool for their customers while avoiding food waste.
“With climate change creating more uncertainty in vulnerable communities, self-sustaining income is more important than ever.
“To tackle poverty and climate change in this decade, we need to reimagine how low-income communities access and use power. Productive use appliance companies have the potential to transform livelihoods, but lack access to investment capital to support their growth. Alongside our partners, we will continue to invest high-risk, early-stage capital in this next generation of innovations at the intersection of energy access, livelihoods, and climate resilience,” said Sarah Bieber, Head of Energy Partnerships at Acumen.
The organisation will also run accelerators to support emerging locally-led energy and agricultural businesses.
Launched on the sidelines of COP26 in Glasgow, Scotland in November 2021, this global programme aims to mobilise $100 billion over 10 years to accelerate the deployment of renewable energy in developing countries in Africa, Latin America and Asia.
