EDP has launched a €500,000 a year fund for renewable energy projects that promote the environmental, social and economic development of rural communities in developing countries.
The fund is aimed at organisations all over the world, both profit and non-profit, with the application process for the first tranche open until 25 November. It will initially target Kenya, Tanzania, Mozambique and Malawi.
The focus will be on five areas where energy plays a crucial role – education, health, water and agriculture, businesses and community.
Projects will be selected according to several criteria, such as social impact, partnerships, sustainability, scalability and the number of beneficiaries.
Funding for each project will range from €25,000 to €100,000. The project selection process will be concluded on 21 December and funds allocated in January. All projects must be implemented over the next year.
EDP said the initiative is part of its new energy access strategy, launched earlier this year.
The strategy also includes a €12m investment over the next three years in the acquisition of companies with sustainable energy access solutions.
The first step was taken in October with the purchase of a stake in SolarWorks, a company that sells decentralized solar energy solutions in Mozambique.
EDP has also taken a stake in SOLshare, a startup operating in Bangladesh which is developing a new solution to simplify the creation and management of electric microgrids in order to bring solar energy to areas without electricity access.
The stake was purchased through EDP Ventures, EDP’s investment tool for innovation.
EDP Group chief executive Antonio Mexia said: “Access to energy must be a concern and priority for all of us. As part of our energy access strategy, iniciated in 2009, which aims to benefit more than 200,000 people over the next three years, we have launched an investment fund for renewable solution projects with a relevant impact in developing countries.”