RENEWABLE ENERGY

  ÉLan’s work in this sector ended in 2021.

CONTEXT

The energy challenge in the DRC is immense. DRC has one of the lowest electrification rates in SubSaharan Africa (9% overall, with access rates of 1% in rural areas and 19% in urban areas, USAID, 2018) and depends almost exclusively on biomass energy sources for cooking. Combined with a large and growing population and high rate of urbanization, this places immense environmental pressures on its natural resources and forests while fossil fuel imports to power generators negatively affects its trade balance and currency. The households and small enterprises that have to rely on battery powered torches and candles for lighting, generator sets for power, and wood or charcoal for cooking, experience the following negative side effects:

• Acute respiratory illnesses, cataracts, heart disease, and cancer affecting mainly women and children who are exposed to the smoke from the use of charcoal and other biomass when cooking indoors (DAI, 2009).

• Extremely high costs of light and power when using candles, battery powered torches and generators when compared to grid connected households or businesses.

• Low quality of light that shortens working hours.

• No access to productive/high power to, for example, make use of refrigeration in households or irrigation systems and mills for agricultural producers

Furthermore, the DRC is widely considered to be a challenging country in which to do business. In the World Bank’s ease of doing business index, the DRC ranks 184th out of 190 globally and 45th (of 48) in SubSaharan Africa. This is a result of a wide range of issues including political and economic instability, high incidence of rent seeking, complicated and unclear taxes and, in some places, a volatile security situation. Moreover, when compared to those of its neighbours, the DRC’s solar market is characterized by high logistical costs and complexity, an unfavourable policy and regulatory environment, and limited financing availability for renewable energy and energy efficient products. A priority for Élan RDC is the need for businesses to focus on poorer households in the DRC

Strategy

Élan RDC focused on supporting private sector players in the DRC to address the affordability gap for both solar PV products and modern cooking solutions to allow the sector to both flourish and be able to reach the desired demographics of poorer households, women and vulnerable population groups in the Élan RDC regions North Kivu, South Kivu, Kasai and Kasai Central.

This strategy demanded a combination of direct financial support and technical assistance to increase both the uptake of renewable and clean energy products and increase the capacity and investment in the sector. Interventions were different levels in the sector: at a government/BEE level, at the wider international and regional renewable and clean energy sector, integrated into local businesses and finally at a direct consumer level. The strategy differentiated between off-grid and on-grid. Off-grid areas are defined as areas where there is no grid connection for households or businesses, while on-grid areas allow households and businesses to enjoy the lower cost of the grid but still experience frequent black and brown outs.

Results

Élan RDC’s interventions in the renewable energy sector have been transformative. In 2014 there was no sector to speak of, with very few players and a limited range of uncertified small solar lamps, sold on a cash basis in informal markets. Today there are more than a dozen companies selling a range of certified devices — from pico-solar chargers, to solar home systems and mini grid providers — throughout the country. These products are now provided through credit and utility models (e.g. PAYGO) to match customer payment habits, while customers are aware of the benefits through extensive marketing via radio/TV and social media. This new industry has coalesced around a national association to improve the business environment which has been successful in gathering the governments attention, most recently through the launch of national fund for off-grid energy by the President of the DRC. Almost 130,000 people (of which 42% are female and 58% male) were reached with Elan’s interventions, contributing over £9 million in total net positive income change.

Élan RDC’s market interventions were focused on engagement with private companies and stakeholders with the criteria to be sustainable, scalable and resilient to external shocks. Elan supported RE businesses to jump start the renewable energy sector into benefitting large numbers of low-income consumers, with the following results:

• Supporting new RE entrants and new areas in the DRC

• New business models, tools and platforms

• Enabling environment and awareness