Ghana and Senegal

United for Efficiency is partnering with the governments of Senegal and Ghana, ECREEE, and the Basel Agency for Sustainable Energy (BASE) to conduct ECOWAS Refrigerators and Air Conditioners initiative (ECOFRIDGES). ECOFRDIGES is funded by the Clean Cooling Collaborative (formerly K-CEP) and promotes the accelerated switch to efficient and climate-friendly cooling appliances to advance the countries’ sustainable development priorities and enhance regional collaboration. Emphasis is on an integrated policy approach so that the transition can be sustained by the domestic market without continued external support or resources.

Project Details

ECOWAS REFRIGERATORS AND AIR CONDITIONERS INITIATIVE

Countries in the Economic Community of West African States (ECOWAS) are experiencing significant economic and population growth, which is driving ever-greater demand for refrigerators and air conditioners in the residential sector. Cooling products are essential for the health, well-being and competitiveness of these economies, but they pose critical challenges in terms of energy consumption and impacts on the environment. Outdated products consume 2 to 3 times the amount of energy as efficient options available today, and they often contain refrigerant gasses that are harmful to the planet. A lack of information on product performance, inadequate policies, higher purchase prices, and a difficult access to financing, often prohibit adoption of energy-efficient and climate-friendly models.

ECOFRIDGES aims to unlock USD 8.4 million in potential financing to support the purchase of 23,600 energy-efficient and climate-friendly cooling products to replace old existing equipment in both Senegal and Ghana. It is building on lessons from Ghana and others’ successful policies and dedicated financial mechanisms and link with activities underway by ECREEE to spur the adoption of superior cooling solutions. ECOFRIDGES includes complementary components, notably the proper disposal of used appliances, product testing, monitoring and verification, policy considerations, and awareness campaigns. The resources developed with Ghana and Senegal will be packaged into a toolkit, and training will be provided to other ECOWAS countries to encourage replication. Ghana and Senegal will also be recognised globally for their ambitious leadership via events and outreach by UNEP.

Main Components

Conduct national market assessments on the equipment, key stakeholders and practices
Develop Financial Mechanisms to promote efficient, climate-friendly refrigerators and air conditioners, with eligibility criteria adapted from U4E’s Model Regulation Guidelines
Monitor the initial operation of the scheme and enforce eligibility criteria and programme protocols
Collect and recycle/process old, operable products
Conduct communication campaigns to raise awareness and interest
Provide capacity building locally and more generally for others in ECOWAS based on lessons learned

Financial Model

In Ghana, ECOFRIDGES Green On-wage Financing (GO) is a bank loan product designed to address the short to medium term financing needs of public and private sector employees through salary deductions to support the replacement of used but operational equipment with a certified cooling systems solution without the burden of upfront investment and the need for collaterals. The employer entity is the guarantor of the salaried customer’s loan and the mechanism reduces the need for stringent credit assessment and collaterals.

In Senegal, ECOFRIDGES On-bill Financing gives consumers the option to finance the purchase through monthly payments on their electric utility bills. A simple review of bill payment history, income and other basic information will be used to determine eligibility for financing. A financial tracking tool will be used to follow repayment progress and program operations to assure the viability of the mechanism over time.