Call for proposals: Support for enterprise development in developing countries regarding renewable energy 2023
General information about the grant scheme
The grant scheme aims to contribute to sustainable economic growth in the renewable energy sector, which is key for many developing countries. Consideration will also be given to projects in other sectors where there is an element of renewable energy.
Grants are intended to reduce risk prior to investment decisions. Grants can support feasibility studies, training of local staff, guarantee and risk premium subsidies in the long-term financing of renewable energy projects, or limited pilot funding.
The grant scheme is application based. Applications are processed and approved or rejected on the basis of the guidelines and criteria set out in this call for proposals.
The grant scheme is competition based. Applications are subject to a comparative assessment in relation to other applications. No applicants are automatically entitled to a grant under this scheme, even if they meet all the formal and practical criteria.
Applicants will first be asked to submit a short concept note, as well as audited financial accounts from the past year, and confirm that they meet the grant scheme’s minimum criteria to qualify for support (see “Types of project eligible for funding”). This will be referred to as “Stage 1” of the application process. Applications will be assessed based on the eligibility criteria below.
Successful applicants will subsequently be invited to submit full applications as well as any other required documentation. This will be referred to as “Stage 2” of the application process.
Unsuccessful applicants at both stages will be notified as soon as possible.
The grant will cover up to 50% of the incurred project development costs and the applicant shall finance the remaining 50%. The minimum grant amount will be NOK 500,000. Applications for amounts under NOK 500,000 will be rejected. Applicants applying for support to more than one project that together amount to more than NOK 500,000 will be considered.
All application documentation must be submitted through Norad’s Grants Portal.
Requirements relating to the grant application
For the first stage of the application process, applicants will be asked to submit a short concept note (four pages, PDF format, uploaded to Norad’s grants portal), describing the project in as much detail as possible, and presenting the business case. The purpose of the call is to contribute to private sector development in service of job creation and renewable energy production. The concept note should reflect a viable business case. The concept note must include the following information in this order:
- A short description of the proposal’s main activities that will be supported by the grant. The project’s geographic location and relevance for the target group should be described (maximum 1 page).
- A brief description of how the activities relate to the business case of the main project, including financial capacity and competence to implement the main project (maximum 1½ page), based on a positive feasibility study where applicable.
- Yearly budget and the applicant’s ability to co-finance minimum 50% of the supported activity (maximum ½ page)
- Expected results on the supported activity and scalability (maximum ½ page)
- Possible partners to the project, both public and private and their contribution when relevant (maximum ½ page)
- For renewable energy projects applying under the guarantee and risk premium scheme, see dedicated section on which information should be included.
Applicants that successfully pass stage 1 will be invited to submit a full and formal application through the Grants Portal. Applicants will be asked to supply full documentation for all claims made in Stage 1, as well as additional information for a full assessment of the project. See below for a list of the questions that will be filled out in the full application.
Objectives of the grant scheme
The objectives of the relevant parts of the grant scheme are to contribute to:
- Increased access to affordable, reliable, sustainable and clean energy in ODA countries,
- Reduced emissions from the energy sector,
- Adaptation to effects of climate change,
- Increased job-creation in ODA countries.
This call for proposals is targeted towards projects in the clean energy sector. Applications for other sectors may qualify for support if linked to energy access or productive use of energy, for example for agriculture and food security.