By Ebunoluwa Sessou
Globally, over 700 million people still live without any access to electricity. In order to meet the Sustainable Development Goal 7 by 2030 rapid deployment of solar home systems, SHSs, and clean energy mini-grids is a high priority.
Clean energy is a crucial humanitarian challenge that supports health, quality of life, and economic growth in off-grid regions of the world. It is however still difficult for the actors in the sector to close the affordability gap that is prevalent amongst communities in the targeted off-grid regions.
Access to climate finance is therefore a much-needed opportunity for additional funding, particularly since the voluntary carbon market is set to grow by a factor of 15 over the next 10 years if it is to cater to the growing demand for high-quality carbon credits.
Against this background, All On, a Shell-funded impact investment company focusing on strengthening the off-grid energy markets in Nigeria, sealed an investment deal in the Danish Technology Company SOLSTROEM.
In doing so, All On matches a previous investment made by Persistent Energy Capital LLC into the company in November 2021.
Speaking on the partnership, CEO, Wiebe Boer, All On, said, it was billed to support the development of Solstroem’s platform that will enable micro carbon credit in everyday activities.
“All On is taking a chance on an innovative business model which could prove transformative and create hard currency revenue generating opportunities for Nigerian renewable energy companies.
“The investment in SOLSTROEM supports the further development and scaling of the company’s software platform, which enables solar home system distributors and other solar off-grid operators across Sub- Saharan Africa to issue and sell carbon credits on the international Voluntary Carbon Market.
“This investment is an opportunity for All On to strengthen access to climate finance for their existing portfolio companies, as well as other established and emerging players in the solar off-grid space in Nigeria and beyond”, he said.
Reacting, CEO and Co-Founder of SOLSTROEM, Karim Jabbar, applauded the gesture saying it will make carbon markets more accessible to solar off-grid operators.
“The relentless work of these actors in giving marginalized communities access to renewable energy has a considerable impact in terms of CO2 emission reductions, as well as measurable social co-benefits.
“We are therefore looking forward to collaborating with All On in making this solution available to companies in their network, and to enabling an increased climate finance flow to where it is really needed”, he said.