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New UNDP reports on financial aggregation for Distributed Renewable Energy

Developed under UNDP's Climate Aggregation Platform, this report series seeks to demystify financial aggregation and raise awareness about its potential to enable investments in Distributed Renewable Energy (DRE) in East Africa and help address the energy access financing gap. 

Launched on the United Nations first International Day of Clean Energy, the series explores the nuances of each market and offers strategic insights for advancing financial aggregation in the DRE sector. It aims to advance our understanding of the key precursors of financial aggregation and the readiness of different sub-sectors (off-grid solar, mini-grids, captive power, e-mobility) in the region, shedding light on the barriers that persist and the opportunities that exist in the market, and providing actionable recommendations to help unlock financial aggregation’s potential.  

UNDP’s Climate Aggregation Platform is a flagship initiative of the Sustainable Energy Hub and Climate Hub to support the structuring and deployment of innovative business models and financial mechanisms to accelerate energy access and a just energy transition. The CAP seeks to advance and raise awareness for innovative solutions to market barriers for financial aggregation in the small-scale, low-carbon energy sector, with the goal to increase access to low-cost financing for clean energy in emerging markets. 

To be released soon! 
UNDP will be releasing two complementary products in February 2024: 

  • A summary report of the CAP Financial Innovation Challenge titled, ‘Financial Innovations for Clean Energy in Africa’ which serves to highlight the seven cutting-edge financial models fostered by the CAP Challenge. 
  • A white Paper, ‘Mainstreaming Financial Aggregation for Distributed Renewable Energy’, developed in response to requests among stakeholders to further demystify financial instruments for DRE and dive deeper into how they work.   
  • A behind-the-scenes look at the development of the report series, highlighting country experiences from Uganda and the many voices involved in the preparation of this series. 

Developed under the UNDP Climate Aggregation Platform, this report examines the potential of financial aggregation for Distributed Renewable Energy (DRE) in East Africa. It analyzes key factors, barriers, and opportunities to enable capital deployment in different sub-sectors (off-grid solar, mini-grids, captive power, e-mobility). The report offers recommendations to unlock the potential market and achieve scalability. It serves as a reference for policymakers, investors, and stakeholders interested in innovative financial solutions to solve the SDG7 financing gap.


To achieve universal energy access in Uganda by 2030, connecting 6.1 million additional customers requires a $5.5 billion investment in on-grid and off-grid systems. The distributed renewable energy (DRE) sector, crucial for this goal, remains underfunded. This country report explores financial aggregation as a solution to align funding needs with investor requirements. The report assesses Uganda's market readiness for DRE financial aggregation, addressing barriers and presenting an action plan. It serves as a reference for policymakers, investors, DRE companies, and development finance institutions, contributing insights from extensive research and interviews.

This work is the culmination of two years of collaboration and engagements between UNDP and a multitude of stakeholders in Uganda, most notably the Ministry of Energy and Mineral Development. The National Renewable Energy Platform (NREP) provided a launchpad for the Climate Aggregation Platform’s work in Uganda, enabling several events and workshops in the country.


Focusing on Rwanda, this country report assesses the financial challenges faced by the energy access sector and proposes financial aggregation, specifically the aggregation of distributed renewable energy (DRE) receivables, as a possible avenue.

The report advocates for the exploration of multi-jurisdictional financial aggregation, bundling DRE assets not only within Rwanda but also across East Africa, to attain the critical mass necessary for cost-effective transactions, and providing an opportunity for regional collaboration. Rwanda’s conducive business environment, its supportive tax legislation and the country’s ambitions to be a leader in green and sustainable finance provide a good starting point.