Norad's enterprise development scheme for renewable energy

In order to secure a smooth process for applying businesses, the initial application is a concept note. Applicants advancing to the second round will be invited to send a complete application. The scheme is intended to stimulate economic development by contributing to increased energy access. The scheme is primarily aimed at developers, i.e. exporters and suppliers are not covered by this scheme. NGOs are also not eligible.

The enterprise development sets strict financing and expertise requirements to applicants, in order to increase the likelihood that granted support will result in investments. Norad also requires applicants to have policies in place in accordance with international best practice for environmental and social considerations, as well as ethical guidelines for their own operations.

Norad announces annual calls in support of i) project development, ii) training and iii) subsidies for guarantees and risk premiums. The announcements are normally made in December or January. In addition, Norad periodically opens ongoing calls on support of iv) public infrastructure to connect new energy production to the power grid. In 2023, NOK 69 million (MNOK) was paid out under this scheme.

Support for improved cooking solutions and smaller solar home systems is mainly supported through the Energy and Environment Partnership (EEP Africa), Global Energy Transformation Programm (Get.Pro) and Modern Cooking Facility for Africa (MCFA).

Norad may support up to 50% of the costs of project activities. The support is paid in arrears based on accrued, actual costs and after progress reporting has been submitted and approved. As a rule, all payments are based on audited project accounts.

This scheme covers all ODA countries. Geographical priority is given to Malawi, Mozambique, Nepal, Nigeria, Somalia and Tanzania and then other countries in sub-Saharan Africa (SSA).

These are some of the projects that have received support in recent years: