Funding and partnerships key to unlocking sustainable energy solutions

As the world confronts energy poverty and the urgent need to combat climate change, renewable energy, and sustainable infrastructure are quickly becoming crucial tools for growth. In a conversation at Devex World 2024, Enoh Titilayo Ebong, director of the U.S. Trade and Development Agency, and Manoj Sinha, CEO of Husk Power Systems, discussed their strategies for making clean energy accessible in underserved regions through innovative financing and local partnerships. USTDA funds priority infrastructure projects in emerging economies, which in turn supports the exports of U.S. goods to these markets. Much of this support is directed toward feasibility studies and technical assistance for clean energy projects. Husk Power Systems, a renewable energy company, operates solar and biomass mini-grids that bring reliable energy to communities in Africa and Asia. Ebong emphasized that well-prepared projects are key to overcoming financing barriers. “The ability to have projects that attract financing, reduce risk, and unlock funding is critical,” she said. “You need to partner smartly and locally,” she added, stressing that partnerships with local financiers and on-the-ground knowledge are essential for sustainable infrastructure development. The scale of the challenge is significant. According to the International Energy Agency, achieving universal electricity access by 2030 will require $25 billion annually. In sub-Saharan Africa alone, 600 million people still lack access to reliable electricity. Sinha highlighted the financial hurdles developers face, with high interest rates on bonds in countries like Nigeria and Kenya, often between 8% and 9%. “That kind of high interest rate is just too much,” he said, urging multilateral institutions like the World Bank to support lower-cost financing options. Both Ebong and Sinha emphasized the need for flexibility in financing to support these projects. Ebong shared an example of USTDA’s work in Nigeria, where it supported a project that used naira-denominated debt financing for solar telecom infrastructure, helping reduce dependency on foreign currency. “We have to be creative about what’s available in our partner countries,” she said. For Husk Power, USTDA’s support accelerates market entry in new regions, cutting down the process from years to less than a year, Sinha explained. He also stressed the importance of favorable policies that support grid integration across multiple countries. As the conversation underscored, bringing affordable, clean energy to underserved communities will take not only significant investment but also partnerships and policies to create scalable, resilient infrastructure that meets both energy needs and climate goals. And the deployment of rapidly developing technology like artificial intelligence for power plant management means that new infrastructure investments can be more effective and efficient than existing projects in richer countries. Manoj explained: “These communities are leapfrogging to 100% or close to 100% renewable,” offering an affordable, clean energy solution that avoids the coal-dependent path of nations like India and the United States.