Providing finance and technical support to unlock constraints to growth and help energy firms to achieve scale.
The Fund will provide appropriate capital matched to the needs of the target energy enterprises at a range of investment sizes. Although ALL ON will contain a broad portfolio of activities, it will not be used to undertake large scale project finance or invest in major energy infrastructure investments that will have a focus on IPPs. ALL ON will primarily focus on (a) enterprises with proven off-grid energy technology solutions that are relevant for the Nigeria and (b) direct support and general needs of businesses that are at or are ready to scale.
Development initiatives have attempted to address energy poverty through subsidies and give away programs. However these interventions have proven to be limited in their reach and generally unsustainable. Providing access to funding and technical support to early-stage energy firms, through grant mechanisms, challenges and awards to promote and test innovative technologies and business models in the Nigeria.
Institutional investors tend to view off-grid energy as a niche, high-risk market. The role of impact investors such as ALL ON is to de-risk the sector and demonstrate its viability by providing risk capital and business development support to develop, prove and scale successful business models.
Engaging in broader market development activities and facilitating the creation ‘public goods’ to develop an ecosystem for A2E solutions in Nigeria, in particular:
- Act as a convener of stakeholders to promote development of the space;
- Be a knowledge hub that conducts research and analysis to address specific gaps and crowd-in other players into the space; and
- Work with partners to advocate for sound policies and best practices within the industry.
In setting out, All On will adopt a design-develop-deploy approach. Given the relatively early stage of the alternative A2E space in Nigeria, the initiative will start necessarily ‘broad’, testing different interventions and understanding how to best make an impact and support energy firms to grow. As All On learns more with its partners, it will become more focused and targeted, looking to identify the solutions that are working and deploy them to reach scale and make a significant difference to the access to energy equation in Nigeria.