The Road to the SDGs

PURPOSE X 789 million people still live without electricity, 75% of which are in rural areas. X Lack of sufficient financing to access electricity, especially in rural areas, is a key challenge to achieve the goal of universal access to electricity by 2030 (SDG 7.1.1). SMEs face particular challenges in this regard due to the difficulty of obtaining working capital. X Low-cost solar solutions are starting to bring new options to these communities. IsDB is working with the Swedish crowdfunding platform, TRINE, which was established in 2015 in response to these challenges. METHOD X The agreement with TRINE was for IsDB to provide financing for off-grid clean, sustainable energy solutions in MCs. The proposal also intends to enhance the availability of an Islamic finance structure for off-grid solutions in MCs through crowdfunding. X In particular, TRINE’s mandate is to tackle the lack of access to capital for the off-grid solar energy sector. X Based on the belief that all people should have access to clean energy, TRINE supports SMEs specialising in distributing solar home systems (SHSs) to rural households through financing the purchase of these systems. X SHSs are standalone photovoltaic systems that are ideal for remote communities that do not have access to the national grid. X The technology costs to provide distributed renewables for energy access such as SHSs have reduced significantly in the three years up to the end of 2020, by more than 40%. X IsDB recognises crowdfunding as a way of creating linkages and partnerships that offer resource mobilisation services for MCs. X IsDB has chosen to work with TRINE on a project whose objectives are: – To attract and positively influence the decisions of crowd investors to support the platform’s campaigns – To enable communities in selected MCs to benefit from crowdfunding campaigns and access to low-emission energy. Unlocking finance to access energy through crowdfunding A crowdfunding pilot project is expected to connect more than 50,000 people with electricity from off-grid solar systems The TRINE intervention is an innovative financing tool that will build partnerships with the private sector in the development arena [ 50 ] SDGs