Foreword
Huib-Jan de Ruijter | Co-Chief Investment Officer at FMO
"We will focus on tackling bottlenecks and barriers to accelerate the renewable energy transition, because why is it that only a fraction of clean energy investments flow into emerging markets?"
If you are reading this magazine, there's probably something you do several times a day, without even giving it a second thought: you flick a switch and the light turns on. Flick it again and it turns off. It's the everyday miracle of access to energy. At FMO, it is one of our goals to include the 700 million people who still live without electricity into this miracle, which today is actually a vital human need. But how can we create more – and green! – access to energy in emerging markets? That's the question of the hour.
In just under a month, we will host together with our partner Solarplaza, the fifth edition of our Future of Energy summit in Amsterdam. This event brings together developers, financial institutions, investors, service providers, and asset owners, all united in their pursuit of advancing the energy transition in emerging markets and developing economies. During the conference, our discussions will focus on identifying the best ways to tackle the bottlenecks and barriers hindering the renewable energy transition. Because why is it that only a fraction of global clean energy investments flows into emerging markets and developing economies? What is holding back the financing into the dynamic energy sector? In addition to large solar and wind projects, rooftop solar for commercial and industrial users, mini-grids, and grid expansion are becoming mainstream. Meanwhile, battery storage and green hydrogen are kicking off for energy transition.
One of FMO’s clients who knows (at least part) of the answer to this question is Rana Uzair Nasis (see here). In 2017, he played a crucial role in launching one of Pakistan's first solar projects, followed soon after by the Gharo Solar project, —a 50 MW solar PV power plant in Sindh, supplying electricity to around 190,000 people.
He was the first in Pakistan to utilize bi-facial solar panels, significantly increasing total energy generation for the project. An important element in project development was collaborating with local communities: Uzair ensured that contractors and subcontractors hailed from the local area. FMO’s emphasis on adherence to international environmental and social standards has also paid off, Uzair confirms. This commitment has provided the Gharo Solar team with a competitive advantage and will assist them in attracting foreign investment, a necessity considering the fragile state of the Pakistani economy — and the fact that Uzair has no plans of slowing down.
But who will be part of the next generation of entrepreneurs, pushing the green and inclusive transition forward? Take Vivek Mittal, CEO of the African Infrastructure Development Association (AfiDA), who is actively supporting a new wave of home-grown clean energy project developers through the Catapult Accelerator Program. And it doesn't stop there: five emerging developers will pitch their projects at the Future of Energy event, and you can already learn more about their ventures here.
"If people do not have adequate and clean energy, the world will not realize climate or sustainable development ambitions, and lives and livelihoods will be lost."
These five entrepreneurs have already experienced that securing the financing or support needed to bring a business to fruition is not something they can do alone. Vivek observed that it typically involves seventeen to twenty institutions to bring a project from concept to financial close. This underscores the importance of an ecosystem that enables developers to access the essential skills, talent, and capital. As FMO, this persistent financing gap for growing impactful businesses prompted us to designate market creation as a key pillar of our Strategy 2030. Our goal is to assist emerging sustainable businesses in reaching a stage where they can secure regular funding from us or other impact investors.
On our second conference day, the keynote speaker will be Damilola Ogunbiyi, CEO of SEforALL and Co-Chair of UN-Energy. With her prior experience in running Nigeria’s Rural Electrification Agency, she knows firsthand that if people do not have adequate and clean energy, the world will not realize climate or sustainable development ambitions, and lives and livelihoods will be lost. All the more reason for us to get down to business and give green energy projects the push they need to launch. The end goal? To make sure that little by little, more people will just need to flick a button so that the light turns on, just like that.
I hope to welcome you in Amsterdam soon. For now, enjoy the read!
Watch the after movie of Future of Energy 2022 to relive the event.