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Productive solar technologies draw investors as global off-grid solar sector funding slumps | TechCrunch

Productive solar technologies draw investors as global off-grid solar sector funding slumps | TechCrunch

Productive applications of renewable energy (PURE) technologies, particularly those in the solar irrigation and cold chain sectors, saw increased investor interest last year, although funding accounted for 43 percent of the global off-grid solar sector. A decrease was recorded.

Global Association for Off-Grid Solar Energy Industry, GOGLA, Says that Pure Technologies raised $65 million in 2023, more than double the previous year, due to growing investor interest in the sector. Among the startups that raised funds in the sector last year are: Figorr, which offers storage and transportation of temperature-sensitive products..

Clean technologies include devices and products such as solar-powered water pumps, Refrigeratorscold rooms and agri-processing equipment that allow improved or new income-generating activities, mostly in the agriculture sector.

Laura Fortis, senior access to investment manager at GOGLA, told TechCrunch that the technologies are gaining interest because of their transformative impact on livelihoods through innovation.

“These solutions mitigate climate change, increase resilience and offer increased income opportunities for beneficiaries, including smallholder farmers and health clinics. By replacing old diesel water pumps and fossil fuel-dependent coolers , especially in the face of climate change, they strengthen the resilience and income of smallholder farmers,” said Fortes.

Overall, the off-grid solar sector raised $425 million last year through 158 deals, including $281 million in debt. Sun King, Delight, Eng Energy Access, M. CoppaZola and Bboxx accounted for 58% of the total investment. This shows that most of the funding went to start-ups or scale-ups with a presence in Africa, where these projects provide products and solutions. Access to energy.

globally, 75% 46% of the population does not have access to electricity, mostly from Africa. Despite this, equity investment in domestic solar startups remains low, which GOGLA says indicates a failure to nurture. New companies focused on access to electricity. which will be important for achieving electrification targets.

“Investment figures for 2023 show that without more risk-adjusted equipment and concessional financing, off-grid solar will not reach the scale needed to achieve global development goals. Although a successful blended financing structure There are already many examples that are catalytic, we need more of them to multiply industry funding by seven,” said Fortes.

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