The Rural Energy Fund (REF) was established by The Rural Energy Act, 2005 for the purpose of providing grants to qualified project developers. The Fund represents a mechanism by which the Rural Energy Board (through REA) fulfills its mandate.

The Fund Provides resources for:

• Grants towards the capital costs of projects implemented by private and public entities, co-operatives, and local community organizations.
• The provision of technical assistance, training and other forms of capacity building to qualified developers by qualified experts related to the planning and preparation of a project prior to an application for a grant.
• The provision of financial assistance. Co-financing investments in innovative pilot and demonstration projects and applications for renewable energy when development partners make special purpose funds available for that purpose.

The Fund does not provide grants towards the operating or debt service costs of any project or developer.

The Eligibility Criteria Documents provide details on how project developers can access assistance from REA.

The sources of income for the Fund consist of monies as may be provided:

• by Government, in an annual budgetary allocation;
• a s contributions from international financial organizations, multilateral and bilateral agencies and other development partners;
• from levies of up to five percent (5%) on the commercial generation of electricity to the national grid; as fees in respect of programmes, publications, seminars, consultancy services and other services provided by the REA;
• as development partners’ contributions to Special Purpose Funds for rural energy;
• as interest or return on investments.

A Trust Agent (currently CRDB Bank Plc) is responsible for disbursement of grant payments from the Fund and ensuring that any pre-conditions set by the Board for making a grant payment are met by developers.