Global clean energy investment reached over USD 1.3 trillion globally in 2022, but only USD 30 billion is flowing to Africa. Paradoxically, the continent is one of the most vulnerable regions to the impact of climate change and despite hosting abundant natural resources, it is grappling with a significant energy deficit.

Amidst the challenges faced, a ray of hope emerges from the flourishing market of Energy Service Companies (ESCOs). In various parts of the world, ESCOs have already proven their capacity to accelerate the deployment of clean energy solutions. By embracing the expansion of integrated renewable energy technologies, numerous African regions can potentially surpass the limitations of traditional fossil fuel-based electricity generation. This transformative approach not only promises to enhance energy access but also represents a remarkable leap towards a sustainable energy future for the continent.

But what is the state of the ESCO market in Africa, and how could it rapidly flourish?

Exploring this topic, the latest release of The Big Shift: The Climate Finance (R)evolution hosts an insightful conversation between Alana Valero, Sustainable Energy Finance researcher at BASE, and Dr. Mohamed Alhaj, Founder & Managing Director of Terra Energy and a renewable energy expert.

The Big Shift was created with the intention of simplifying technical terms and concepts related to climate finance, while showcasing successful implementations of business models and financial mechanisms in climate projects. Our latest publication“The Role of Africa’s ESCO Market” report, created in partnership with Dr. Alhaj with support from Integrate to Zero, explores multiple customer-driven models that can be offered by ESCOs and could widen the access to renewable energy on the continent by significantly increasing their affordability. Flagship examples include servitisation, integrated technologies and energy performance contracts.

This new episode delves into the models highlighted within the report and breaks down how they work. The speakers take the opportunity to:

• Share the main findings and insights from this report including barriers that limit clean energy deployment in Africa
• Highlight recommendations to overcome those significant obstacles
• Explain the current state of the ESCO market in Africa
• Share stories from business model innovations, such as energy-as-a-service and e-mobility-as-a-service which are fueling the success of PAYGO companies like Ampersand, BBOx, and Mazi Mobility and spurring the growth of the ESCO market in the region.

To learn more and discover how consumer-based integrated clean energy solutions hold the potential to expedite Africa’s energy and electric mobility transition, listen to the full episode here: 

Listen to additional episodes of The Big Shift: The Climate Finance (R)evolution — a podcast by BASE Foundation designed to put climate finance at the centre of the climate mitigation and adaptation stage.