Off-Grid Energy Business Initiative: Market Development Fund (Mozambique)

BRILHO is a 5-year programme implemented by SNV, with national coverage, that is catalysing the off-grid market in Mozambique, promoting and supporting business initiatives that can provide clean and affordable energy solutions to the population and small businesses, with a competitive and sustainable approach.

The programme has a mandate to support business initiatives by leveraging their innovation capacity and resources to develop and invest in off-grid solutions and services; and thus improve the lives of low-income people through savings, well-being, and livelihood opportunities, while generating commercial benefits for the private sector.

To achieve its objective, the BRILHO programme, through the Market Development Fund, offers selected business initiatives a unique combination of structured, non-reimbursable funding for up to £1,500,000 per year, and expert technical support.

In addition, the BRILHO programme supports the development of the sector's ecosystem, improving access to information, demand activation, and supporting the development of a more favourable regulatory framework, including the support to the Government of Mozambique in the development of the recently approved Decree 93/2021 that regulates the off-grid energy sector.

The Government of the United Kingdom (FCDO) and the Government of Sweden (Sida) reaffirm their commitment to continue working with the Government of Mozambique, the private sector, national institutions, and international partners to contribute to the prosperity and well-being of all Mozambicans.

Scope of Technologies

• Improved Cooking Solutions (ICS)
  • BRILHO will take a broad definition of ICS, including biomass stoves (that offer at least 40% reduction in the use of fuels for cooking over the current technologies being used) and non-biomass stoves, allowing to support the use of alternative fuels: wood, charcoal, pellets, briquettes, biogas, ethanol, etc.
• Solar Home Systems (SHS)
  • Universal access requires that households have at least SEforALL Tier 1 electricity, including access to improved lighting and communication. Particularly when linked to Pay-As-You-Go (PAYG) mobile money technology, SHS are recognised as a quality affordable solution for off-grid households, as well as to power micro, small and medium enterprises (MSMEs) with a range of productive use options.
• Green Mini-Grids (GMG)
  • Rural economic growth cannot happen without energy. Small direct current (DC) and larger grid-equivalent alternating current (AC) Green Mini-Grids (GMG) provide an opportunity to deliver higher energy service levels to both households and MSMEs.

What they offer?

• BRILHO offers selected companies a unique mix of structured non-reimbursable funding and specialised support, to de-risk business initiatives that aim to achieve competitive commercial returns and provide off-grid energy solutions to low-income markets. Alongside, BRILHO supports the sector ecosystem development by improving access to information, setting quality benchmarks and advocating for a better regulatory framework.

Criteria

• BRILHO has opened its application window for off-grid solar and ICS applications on February 2022, which will remain open until Q1 2024.
• Processing applications by cohorts on a quarterly basis.
• Each MDF bid will be reviewed to ensure that it complies with the minimum eligibility criteria.
• Information provided by the applicants is kept strictly confidential.

For more information, visit SNV Netherlands Development Organisation.