Households, smallholders and entrepreneurs in remote locations across Benin will be able to access reliable and cheap electricity for the first time under a new off-grid solar scheme agreed between leading solar energy company ENGIE Energy Access and the European Investment Bank, one of the world’s largest financiers of renewable energy.

The European Investment Bank has agreed to provide a EUR 10 million loan to support the deployment of 107,000 high-quality solar home systems to Benin. This will open up access to clean energy for 643,000 people. The solar home systems include solar panels and battery storage to be sold on Pay-As-You-Go (PAYGO) contracts

Gillian-Alexandre Huart, ENGIE Energy Access CEO, said: “Over the last couple of years, the private sector has developed off-grid solutions such as solar home systems (SHS), micro- and mini-grids, which have clearly proven to be sustainable and economical solutions to reach universal energy access by 2030.

“For the first time, more than half a million people across Benin will be able to access electricity that will power communications, provide light and make cooking easier. Deployment of solar home systems will also reduce the usage of kerosene, charcoal, candles and generators to help families save money, reduce pollution and reduce the risk of accidents. Unlocking sustainable, economic and social development through off-grid solar is key for Africa’s future and to reduce the impact of global energy shocks, The EIB is pleased to back this project in Benin”.

Ambroise Fayolle, the European Investment Bank Vice President, said: “Vulnerable communities across Africa are being impacted by global energy shocks triggered by Russia’s invasion of Ukraine and so improving access to affordable and clean energy is even more important to fight poverty, create jobs and empower women and girls. The European Investment Bank is pleased to agree new support for scaling up off-grid solar deployment to West Africa under this new partnership with ENGIE.

Unlocking financial empowerment and overcoming currency barriers
The provision of the PAYGO model will allow families unable to afford the upfront costs of solar home systems to pay for the equipment over a duration of some years at less than USD 20 cents a day. The new European Investment Bank financing will also allow repayment of equipment purchased in US dollars in local currency. Previously, currency fluctuations hindered provision of affordable, clean energy solutions to communities without access to foreign currency. Customers will also benefit from cheaper costs and easier repayment through use of mobile banking.

Unlocking financial empowerment and overcoming currency barriers
The provision of the PAYGO model will allow families unable to afford the upfront costs of solar home systems to pay for the equipment over a duration of some years at less than USD 20 cents a day. The new European Investment Bank financing will also allow repayment of equipment purchased in US dollars in local currency. Previously, currency fluctuations hindered provision of affordable, clean energy solutions to communities without access to foreign currency. Customers will also benefit from cheaper costs and easier repayment through use of mobile banking.