TRINE, 2018-2022, Crowdfunding Renewable Energy

Sida's guarantee to TRINE covers the period 2017 - 2023, and qualified loans must expire in 2022. Trine is supporting 11 companies contributing to spreading renewable energy. There is no longer any lending under the guarantee. This CoP is an update of last year's CoP and contains some of the same information, results have not changed since last year given that no new loans have been made. The guarantee's end targets for 2023 and actual results as of the end of 2020 are the following: Connections: Actual: 32824cnx, 161123 beneficiaries Target: 100000cnx, 560000 beneficiaries This is below target largely because 1) of C&I investment which has less people directly impacted but higher economic impact. A C&I system providing renewable power to a SME can be many thousands of times larger capacity than a singe solar home systems. Sida considers it reasonable that an investment portfolio comprises a mix of SHS and C&I loans, this to reflect the market, allow diversification and adequate risk/return to a platform. The SME segment served by C&I is also key for productivity, cost, CO2 and health benefits and to support the ecosystem of companes needed to deliver on minigrids over time (similar companies and solutions for C&I and minigrids). Lending Actual: 8.7 MEUR/89 MSEK Target: 100 MSEK Sida considers this a good evel of mobilisation. According to Trine, the gurantee was not fully utilized as it was expensive. Sida considers that this observation may have some merit, there are examples of guarantees on the market which are cheaper. 9 loans have been made in 5 countries of which 4 are Sida-cooperation countries. The proportion LDC-lending is appoximately 30%. This is less than what we generally aim for, but it should be noted that the offgird segments lent to address relatively poorer demographics also in LMICs and that it is not possible to exactly steer partner lending as there has to be a favorable confluence of company demand for loans, lending organisation origination capacity(finding and analysing borrowers), appetite by crowd invstors to fund a given project and creditworthiness of borrowers. There is also a financing gap in LMICs, not only in LDCs.

Sida's guarantee to Trine is expected to lead to: 1. Increased amount of debt through crowdfunding platforms to finance working capital for renewable energy service companies. Access to finance will enable companies to expand their services to unelectrified poor populations in sub Saharan Africa. 2. Increased production and improved access to renewable energy 3. Increased crowd investor confidence and engagement in this type of lending which will result in larger investments. Moreover, Sida expects other types of investors such as impact investors and family offices as the sector start showing a track record and proves a financially sustainable business model. In terms of outputs the guarantee contribution is expected to result in: - A total of 100,000 new renewable electricity connections reaching an estimated 560,000 people. - Mobilizing 100 MSEK in private capital in loans to renewable energy service companies. - Increased installed generation capacity from renewable energy sources by 1 MW. - Annually avoiding carbon dioxide equivalents emissions of 200,000 tons.