PREO awards Ksh.639 million to 22 Clean Energy projects across Sub-Saharan Africa

The Powering Renewable Energy Opportunities (PREO) programme has announced €4.26 million (Ksh.639 million) in grant funding for 22 companies working on clean technology solutions in sub-Saharan Africa.

The grants, awarded through PREO’s sixth funding round, will support innovations in food systems, climate-smart water use, e-mobility, digital tools, and clean cooking.

Each project will receive between €100,000 and €300,000 to scale up or pilot business models that apply renewable energy for productive use—known as PURE solutions. The funded projects aim to enhance livelihoods, build climate resilience, and stimulate local economies over the next 12 to 24 months.

PREO is jointly delivered by the Carbon Trust and Energy 4 Impact (a Mercy Corps initiative), with funding from UK aid via the Transforming Energy Access platform and the IKEA Foundation.

Surge in Demand Reflects Sector Growth

This latest funding round drew a record 613 eligible applications—an increase of approximately 150% compared to the previous African call. In total, entrepreneurs requested over €115 million in funding and committed €73 million in co-financing, indicating growing interest and investment in renewable energy for development in the region.

Applications were reviewed by the Carbon Trust, Energy 4 Impact, and an independent investment committee. The selection process focused on proposals with the highest potential to scale and deliver measurable impact in line with PREO’s objectives.

Selected Projects Span Five Key Sectors:

Food Systems and Cold Chains
Eight projects are addressing post-harvest losses and limited processing capacity. Solutions include solar grain mills, smart dryers, and cold storage. For example, Agsol Kenya will provide solar-compatible grain mills through a pay-as-you-go (PAYGO) model, while Synnefa Green will deploy solar dryers with IoT-based traceability features.

In Malawi, SolarWorks Energy will test a 'pay-as-you-catch' finance model for solar night fishing lights on Lake Malawi. Women-led enterprises like Novel Farm (Uganda) and Green Eden Farms (Nigeria) are deploying solar milk coolers and storage hubs to reduce spoilage and increase farmer income.

Climate-Smart Water Solutions
Five initiatives are introducing solar irrigation and purification systems with accessible financing options. Kenyan company Irri Hub Ke is combining solar pumps with agronomy support, and SunCulture will pilot rural water purification under PAYGO terms. Nigerian firm Spunvertek will offer IoT-enabled solar pumps with flexible repayment linked to rice harvests.

E-Mobility
To support the transition to electric transport, five companies are developing battery-swapping networks, local assembly facilities, and financing solutions for e-motorcycles and three-wheelers. In Kenya, Kiri EV will organize drivers into cooperatives for better financing and charging access, while Benin-based ZED Motors is introducing solar-powered battery swap stations.

Digital Platforms
Kenya’s GreenBay Market will build a platform for second-hand and energy-efficient appliances. In Nigeria, Koolboks will expand its Koolbuy platform, which converts standard freezers into PAYGO-enabled, solar-powered assets for small businesses.

Clean Cooking
Two projects in Kenya are developing alternative cooking solutions. Feion Green Ventures will distribute locally made electric pressure cookers for institutions on a usage-based model. Zuhura will pilot hybrid food carts powered by solar and bio-ethanol for street vendors.

Strategic Objectives and Outlook

According to programme partners, these grants aim to generate practical evidence around the scalability of clean energy business models and crowd in private investment. PREO supports development goals related to clean energy (SDG7), economic opportunity (SDG8), and climate action (SDG13).

Rachel Kyte, the UK’s Special Representative for Climate, stated, “The clean energy transition is the greatest economic opportunity of our time. These locally driven solutions are critical to delivering sustainable energy access across the continent.”

Richa Goyal, Programme Manager at the IKEA Foundation, added that the selected companies reflect the growing capacity of African entrepreneurs to develop “climate-smart solutions that improve incomes and build resilient communities.”