Access to Clean Energy (ACE) Fund for Off-grid Energy India

The proposal outlines a 25-year program to address financing gaps for off-grid energy (OGE) companies in India. It seeks US$31 million from the Green Climate Fund (GCF) to create a first-loss capital pool and provide technical assistance, complementing a US$100 million revolving credit line anchored by the Indian Renewable Energy Development Agency (IREDA). The facility aims to reduce the high perceived risk of OGE lending, lower interest rates for companies, and replace kerosene use with clean energy in underserved rural and urban areas.

• Approximately 77 million Indian households have little or no grid-based power access, and 20 million more are underserved, with kerosene serving as the primary lighting fuel and causing indoor air pollution.
• Off-grid energy (OGE) companies in India struggle to scale due to high upfront capital requirements, high domestic financing costs, and a 'high risk' perception from banks, with current interest rates ranging between 13-18%.
• The proposed finance facility consists of two main components: a financial support mechanism featuring a revolving concessional credit facility and a first-loss capital pool, and a technical assistance component for financial institutions.
• The financial structure involves a US$100 million revolving credit line, with US$70 million provided as an anchor contribution by IREDA and US$30 million from other domestic investors, supported by a US$30-50 million first-loss capital pool jointly funded by the GCF and the Ministry of New and Renewable Energy (MNRE).
• The program aims to address three primary barriers: information asymmetries regarding borrower creditworthiness, limited institutional capacity for risk assessment in the new OGE sector, and restrictive financing structures characterized by short tenors and high rates.
• The project targets a mitigation impact where a solar PV based micro grid could avoid 680tCO2e annually per MW of capacity, with each MW of additional capacity serving approximately 834 households.

APA

Green Climate Fund (2016). Access to Clean Energy (ACE) Fund for Off-grid Energy India. https://www.greenclimate.fund/sites/default/files/document/17490-access-clean-energy-ace-fund-grid-energy.pdf

Chicago

Green Climate Fund. Access to Clean Energy (ACE) Fund for Off-grid Energy India. 2016. https://www.greenclimate.fund/sites/default/files/document/17490-access-clean-energy-ace-fund-grid-energy.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Access to Clean Energy (ACE) Fund for Off-grid Energy India |date=31 August 2016 |url=https://www.greenclimate.fund/sites/default/files/document/17490-access-clean-energy-ace-fund-grid-energy.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2016access, author = {{Green Climate Fund}}, title = {{Access to Clean Energy (ACE) Fund for Off-grid Energy India}}, institution = {Green Climate Fund}, year = {2016}, month = aug, url = {https://www.greenclimate.fund/sites/default/files/document/17490-access-clean-energy-ace-fund-grid-energy.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }