Maelezo

The purpose of this call is to contribute to private sector development in renewable energy production and access. By reducing the financial risks associated with early-stage projects, we aim to accelerate the transition to sustainable energy and foster economic growth in developing nations.

About the Grant Scheme

This is a call for proposals under the grant scheme for enterprise development for renewable energy. The overarching goal is to contribute to sustainable economic growth by increasing renewable energy generation and improving access to energy, a critical factor for development in many countries.

Grants under this scheme are specifically designed to reduce risk prior to investment decisions, bridging the gap between project conception and financial close. This de-risking function is vital for attracting larger investments from commercial banks, development finance institutions, and private equity funds. The grant can support a range of essential activities, including:

• Project Development Studies: Funding for feasibility studies, technical design, environmental and social impact assessments (ESIAs), and legal and financial advisory work necessary to bring a project to bankability.
• Public Infrastructure for Grid Connection: Vital public infrastructure that enables renewable energy projects to connect to the national grid, such as substations or transmission lines. This is a common bottleneck that this scheme can help address.
• Guarantee Premium Subsidies: Subsidizing the premiums for guarantees that facilitate long-term debt-financing, making it more affordable for renewable energy projects to secure the loans they need for construction and operation.

This call is application-based and competitive, open to any Norwegian or international applicants that meet the criteria outlined in section 3 of the call document. Applications are evaluated and weighted in relation to other submissions and the overall portfolio objectives. Grant awards are made solely in accordance with the guidelines and criteria specified in this call.

The budget for this call is limited to approximately 10-20 new agreements. Due to the expected volume of applications, not all relevant proposals will be successful. Please note that no applicant is entitled to a grant, even if all formal and material criteria are met.

Application Process

The application process is designed to be efficient and is divided into two stages:

Stage 1: Concept Note
Applicants must first submit a short concept note outlining the proposed project. This submission must be accompanied by:

• Audited financial accounts (in English) from 2024, or 2025 if available.
• A confirmation that the applicant meets the grant scheme’s minimum criteria for support (see sections 3 and 4 of the call document).

Applications in Stage 1 will be assessed based on the criteria in section 5A. This initial filter ensures that only the most promising and qualified projects proceed to the more detailed application phase.

Stage 2: Full Application
Successful applicants from Stage 1 will be invited to submit a comprehensive full application, along with any other required documentation, such as detailed budgets, partnership agreements, and implementation plans.

Unsuccessful applicants at both stages will be notified as soon as possible.

Key Financial Information

• Grant Coverage: The grant may cover up to 50% of the incurred project costs.
• Co-Financing: The applicant is responsible for financing the remaining 50% . This co-financing requirement ensures strong ownership and commitment from the project developer.
• Disbursement: Grants are disbursed in arrears. This means the applicant must be able to cover the full cost of activities upfront before submitting a request for reimbursement. Applicants should plan their cash flow accordingly.

How to Apply

All applications and relevant documentation for both stages must be submitted through Norad’s Grant Portal to be considered.