Energy Access Ventures invests $2m in Ghana solar business
Energy Access Ventures (EAV), a Paris-based access firm which backs companies that increase electricity access in sub-Saharan Africa has announced a $2 million investment in PEG, the leading off-grid solar pay-as-you-go (PAYG) company operating in Ghana.
The partnership with PEG is EAV’s second investment and its first in West Africa and its second in Africa after investing in Schneider Electric.
“After a Series A-1 round of $3.2 million closed in September 2015, EAV led a $4.3 million Series A-2 round, joined by Blue Haven Initiative. Existing investors Engie Rassembleurs d’Energies and Investisseurs & Partenaires also participated in the round,” EAV said in a statement copied to ghanabusinessnews.com.
According to the statement, PEG offers customers a home solar energy product on a 12-month payment plan, with an initial $35 deposit, followed by daily or weekly repayments, through mobile money. After completing the payment plan, customers own the solar home system, with multiple lights, mobile charging facility, a lantern and a radio.
PEG targets customers who typically earn $1 – $6 a day in semi-urban or remote rural areas, majority of whom are unbanked, the statement indicates.
The rapidly growing solar provider is said to have over 10,000 customers currently, serviced from 29 service centres in seven regions of Ghana.
Dr Michael Gera, Managing Partner of EAV was quoted as saying: “We are immensely proud to be investing in PEG. Their technical and financial innovation and unmatched distribution capability provide a unique opportunity to bring electricity to thousands of people in Ghana and beyond who have no access to grid-based power. Very importantly, PEG enables families to switch away from use of kerosene with its associated health and safety hazards.”
EAV said its investment will help PEG expand its operations in the region, and Dr Gera will join the PEG Board.
The Chief Executive Officer of PEG, Hugh Whalan was quoted as saying: “We are thrilled to have closed this latest funding round and look forward to working closely with our investors to leverage their unique skills so as to deliver reliable and convenient power to the millions of Ghanaians who need it, and at a price that poor consumers can afford”.
By Emmanuel Odonkor
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