Energy Access Ventures (EAV) has announced a USD2 million investment as part of a USD7.5 million round in PEG – an off-grid solar pay-as-you-go (PAYG) company operating in Ghana.
The partnership with PEG is EAV’s second investment and represents the start of its investment activity in West Africa. After a Series A-1 round of USD3,2M closed in September 2015, EAV led a USD4.3 million Series A-2 round, joined by Blue Haven Initiative. Existing investors Engie Rassembleurs d’Energie and Investisseurs & Partenaires also participated in the round. The funding will be used to expand operations in Ghana, build out the management team, and to enter Ivory Coast
PEG offers customers a solar product on an affordable 12-month payment plan, with an initial USD35 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.
Dr Michael H Gera, Managing Partner of EAV said “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.”
PEG has grown rapidly into the largest PAYG solar provider in Ghana, and currently has over 10,000 customers, serviced from 29 service centres in seven regions of Ghana.
PEG targets customers who typically earn USD1-USD6 a day in semi-urban or remote rural areas, the overwhelming majority of whom are unbanked.
PEG has pioneered a PAYG business approach that focuses on building value through a focus on distribution, financing and branding. PEG licenses its technology from MKopa, the global leader in PAYG technology.
EAV’s investment will help PEG expand its operations in the region, and Dr Gera will join PEG’s Board.
PEG CEO Hugh Whalan says: “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”.
At Schneider Electric, cornerstone investor of the EAV fund, Gilles Vermot Desroches, Sustainability Senior Vice President, says: “EAV makes its second investment, consolidating the vision and promise that began within Schneider Electric. Moving from Eastern to Western Africa shows that access to energy is indeed a basic need fostering development as well as growing consumer market. Schneider Electric reinforced its strong support to EAV and its portfolio companies to deliver a significant impact to communities and regions across Africa."
