FMO is pleased to announce that the Ministry of Foreign Affairs granted FMO an additional EUR 40 million to the Access to Energy Fund (AEF). This will increase the fund to a total of EUR 150 million of grant funding in 2024.
The top-up will help FMO to continue working on high risk, high impact renewable energy transactions in line with the FMO Energy and the AEF strategy.
Powering up: finance to close the energy access gap
Since 2007, AEF actively supports the enhancement of access to sustainable energy in developing countries. By providing risk bearing capital, the fund improves the availability and quality of renewable energy. Over the years AEF has built up a diversified renewable energy portfolio, both in on-grid as off-grid energy (including in the clean cooking sector). The fund is a frontrunner when it comes to renewable energy financing and can invest in all OECD DAC countries.
AEF investment empowering India’s rural women entrepreneurs
India is home to the world’s largest un-electrified population with an estimated 240 million Indians living without or with limited access to electricity. In 2020 FMO provided an AEF loan to Dharma Life, a social impact enterprise in India selling products such as solar lamps and cooking stoves to rural households. The organization set up a network of 16,000+ rural entrepreneurs of which 75% are women. The AEF loan supports Dharma Life’s growth and improves living conditions of rural households while reducing carbon emissions.
Other examples of AEF investments can be found here.
Dorien Lobeek, FMO Portfolio Manager of AEF: “We are very happy with this new grant and being entrusted by the Ministry of Foreign Affairs to further grow the Access to Energy Fund. This funding enables us to continue financing companies like Dharma Life, and other renewable energy projects with a high impact, which cannot yet be financed by commercial entities”.
For more information please see https://www.fmo.nl/aef