Region and country of operations: Africa, Uganda
Jurisdiction of registration: Uganda and Mauritius
Business sector: Energy efficiency
Date of agreement (month/year): 5/2019
Finnfund’s financing: EUR 1,000,000
Share of Finnfund’s financing: 100%
Size of project/financing: EUR 1,000,000
Environmental and social category: C
UpEnergy is selling energy efficient charcoal stoves in Uganda. In addition to the stove sales revenue UpEnergy is selling certified emission reductions (CER) that are part of UN’s Clean Development Mechanism. CER’s can be sold after emission reductions are verified according to the UN process. Finnfund’s loan provides the project company enough liquidity and working capital to maximise the current emissions reduction purchase agreements with Swedish and Norwegian governments.
Main development impact
UpEnergy is an SME company in a fragile LDC country with practically nonexistent access to funding from local financial institutions. With the funding provided by Finnfund the company can maintain and expand its operations of distributing energy efficient stoves to Uganda where inefficient open fire cooking method is still prevailing.
Project company’s efficient cooking stoves are replacing less energy efficient cooking methods including open fire cooking. This will reduce consumption of firewood and charcoal, improve the air quality in users’ homes, reduce emissions, save money to the households and reduce deforestation in Uganda.