The Energy Transition Challenge Fund (ETCF) is a four-year programme funded by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) via KfW Development Bank (KfW) and implemented by the Africa Enterprise Challenge Fund. The programme supports Nigeria’s Energy Transition Plan, which outlines pathways for transitioning the power, industry, and residential sectors.
The programme responds to Nigeria’s Energy Transition Plan, which requires an estimated USD 410 billion in incremental funding by 2060. By leveraging catalytic grants and blended finance, ETCF is designed to de-risk private sector investments, crowd in commercial capital, and accelerate the transition.
Energy Transition Challenge Fund (ETCF) information session
We held an interactive session where we walked through the ETCF programme. Our team explained the purpose of the facility, the application process, and how to navigate the Submittable platform.
Click here to watch the webinar recording.
Programme goal and objectives
The ETCF programme seeks to empower SMEs to contribute to Nigeria’s Energy transition ambitions and boost the productivity and resilience of key sectors and value chains. Specific objectives include:
- Increasing household access to modern, affordable, and sustainable energy solutions by supporting the transition from traditional fuels to clean and efficient technologies.
- Accelerating the energy transition in the commercial, industrial, and agribusiness sectors by promoting investments in clean, efficient, and cost-effective energy solutions that contribute to climate goals.
- Powering public institutions with sustainable energy solutions and strengthening the skills and competencies needed for the energy transition through targeted investments in Technical and Vocational Education and Training (TVET) institutions.
Geography
The programme is being implemented across Nigeria, with beneficiaries drawn from all regions of the country. While nationwide in scope, the programme places particular emphasis on peri-urban and rural areas, where energy access challenges are most acute.
Programme approach
The programme uses a challenge fund model to competitively select and support investees with innovative, high-impact solutions, ensuring fair and equal access to funding.
Funding opportunities
The ETCF programme provides three windows of funding opportunities:
Window 1: Household Energy Access Window
This window targets private sector companies that distribute renewable energy solutions for households and small businesses in rural and peri-urban areas, including clean cooking and off-grid technologies for productive use.
- Minimum fund award – EUR 100,000
- Maximum fund award – EUR 800,000
- Duration of agreement – Up to 24 months
- Matching funds range – 1:1 (minimum 80% in cash, up to 20% in-kind)
Window 2: Commercial and Industrial Window
The window targets private sector companies investing in renewable energy systems for use in commercial, industrial, and agribusiness use in Nigeria with a focus on improving productivity, reducing fossil fuel use, and advancing climate goals.
- Minimum fund award – EUR 100,000
- Maximum fund award – EUR 800,000
- Duration of agreement – 12 to 24 months
- Matching funds range – 1:1 (minimum 80% in cash, up to 20% in-kind)
Window 3: Public Institutions
This window will support public institutions (e.g., schools, health centres, local governments) to access clean, reliable energy and invest in Technical and Vocational Education and Training (TVET) to build skills for Nigeria’s energy transition.
Matching fund requirement
Applicants must provide matching funds equivalent to AECF’s contribution on a 1:1 basis. At least 80% of the applicant’s contribution must be in cash, with in-kind contributions capped at 20%. AECF will discuss with the applicant how to best agree on the contribution, commitment and valuation.
Programme support mechanisms
Technical assistance (TA) will be available under this programme. This non-financial assistance will be provided as value-add services to the companies contracted under this program to maximise the quality of the project implementation outcomes, business sustainability, and impact.
Fraud alert – Stay vigilant
The AECF LLC advises the public to beware of fraudsters falsely claiming affiliation with the organization. These individuals may offer assistance with applications or promise grant awards in exchange for money or personal information.
Please be aware:
· The AECF has NO agents or intermediaries for applications.
· Our selection process is rigorous, fair, and entirely free.
· Any request for payment for facilitation is fraudulent.
· All communication from AECF will come through official channels.
To verify any communication claiming to be from AECF, check the sender’s identity and contact us directly at info@aecfafrica.org or +254 111 035 000 before taking any action.
The AECF is committed to safeguarding applicants’ confidential information and ensuring a transparent, unbiased process. Stay alert and report any suspicious activity.
The AECF DOES NOT charge any application fee for participation in its competitions. Any request for payment in exchange for assistance with AECF-funded programs is a SCAM.
