As we reach the halfway mark towards the 2030 Sustainable Development Goals (SDGs) deadline, the urgency to address the energy crisis is more pronounced than ever. Despite progress towards SDG 7's targets for clean and affordable energy, with 675 million people still without electricity and 2.3 billion lacking access to clean cooking solutions, a significant acceleration in efforts is required. This White Paper is part of a report series, Financial Aggregation for Renewable Energy in East Africa, published by UNDP on 26 January 2024, the first International Day of Clean Energy. Designed as a follow-on piece to the 3-part series, it reiterates the critical role of Distributed Renewable Energy (DRE) in bridging these gaps and aligning with the Paris Agreement goals. It further unpacks the financial aggregation of DRE receivables as a promising approach to reconcile DRE funding needs with investor requirements, thereby enhancing capital deployment in the sector.

Developed under the Climate Aggregation Platform (CAP), a Global Environment Facility-funded project by UNDP, this paper aims to further demystify the process of structuring scalable DRE financial aggregation transactions. Through real-life examples and lessons from pioneering transactions, it seeks to equip stakeholders with the knowledge to navigate this complex field, highlighting the role of concessional funds and the potential for standardized practices to reduce costs and transaction times.