05 Apr Tech giants partner with Allotrope for renewable energy microgrids
Facebook and Microsoft have set up a novel facility to finance renewable energy projects around the world, along with venture capital investment firm Allotrope Partners.
The companies are seeking to mobilise US$50 million between 2018 and 2020 through the first-of-its-kind facility, named the Microgrid Investment Accelerator (MIA).
“MIA will test the commercial opportunity for microgrids and demonstrate how concessionary finance can unlock progressively larger proportions of private capital as risks are discovered, priced, and mitigated,” said chief executive officer Alexia Kelly.
MIA will receive grants and loans from foundations and development banks to attract capital for projects, which support the establishment of renewable energy microgrids.
Microgrids are miniature power systems which are unattached to national grids and operate independently.
Therefore, microgrids have emerged as realistic options for people living in remote areas which remain unconnected to national power grids, including large swathes of sub-Saharan Africa and regions in developing Asia.
Consequently, the tech giants and Allotrope have targeted projects in Indonesia, India and East Africa, as the firms look to bring energy to developing regions and open up new markets in the process.