SOUTHERN SSA OFF-GRID SOLAR ENERGY ROLL-OUT

The project will finance the roll-out of off-grid solar energy systems in Mozambique and potentially other countries in Southern Sub-Saharan Africa.

The operation aims deploying last mile distribution for underserved rural off-grid households and micro-entrepreneurs communities in Mozambique and to a lesser extent in Malawi The operation consists in the distribution, installation, and financing of Solar Home Systems (SHS) and devices in Southern Africa by the promoter. The project is expected to have significant positive social impact given that final beneficiaries are typically off-grid households and small commercial activities, which will be enabled to improve their quality of life and partially use the energy services for productive use and income generating activities.

The relatively small size of the household solar home systems, the multiple locations and the nature of the installation of solar powered systems will limit the potential negative environmental impacts of the operation. The due diligence will review the promoter's capacity, approach and procedures for ensuring that the operation is implemented in line with the Bank's environmental standards, notably for what concerns potential residual risks, such as e-waste and battery disposal/recycling, as well as client protection principles. The project is expected to be environmentally and socially sound. It will facilitate access to renewable energy for an unserved or underserved population and mitigate CO2 emissions from fossil energy sources currently used for lighting and electricity generation.

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.