(EnergyAsia, January 11, Monday) — The Norwegian Investment Fund for Developing Countries (Norfund) said it has signed an agreement with E+Co, a company that invests in clean energy enterprises in developing countries. The agreement will expand the financing resources for enterprises providing clean energy services, thereby contributing to poverty reduction, economic development and environmental sustainability.

Norfund, a state-backed development finance institution, invests in businesses, helping to promote sustainable economic development and reduce poverty in developing countries. Norfund’s investment in E+Co of US$7.5 million will help increase access to clean energy services.

“The provision of adequate and affordable energy services is essential in order to create sustainable development in the poorest countries. Norfund’s investment in E+Co provides a much needed source of finance to enterprises seeking to establish and expand access to clean energy services. E+Co has a proven track record, and we are confident that the partnership will play an important role in this sector,” said CEO Kjell Roland of Norfund.

Building on more than 15 years experience in Africa, Asia and Latin America, E+Co will use Norfund’s facility to invest in clean energy projects through its ‘market-based, enterprise-centric’ business model.

E+Co works with local entrepreneurs with a special focus on small and medium-sized enterprises (SMEs). Its clients are often located in rural and semi-rural areas that are considered some of the toughest markets in the world.

E+Co’s current investment portfolio includes over 150 active energy SMEs ranging from micro-hydro developers in Nepal to solar retailers in Nicaragua and efficient cook stove manufacturers in Ghana. The company’s clients have provided access to clean energy to over 5.6 million people around the world.

Apart from investments, E+Co also provides individualised capacity building services to clean energy entrepreneurs. These services include initial market assessments, financial modelling and expansion planning. The goal is both to increase entrepreneurial capacity at the local level and at the same time to mitigate the risks associated with energy investments in small and growing businesses.

“E+Co recognises that there is a demand for clean and affordable energy in developing countries and this demand can be satisfied by local entrepreneurs. The agreement with Norfund enables us to increase our support to local clean development entrepreneurs,” said Paul van Aalst, an E+Co director.