Investors have a chance to win financing worth Sh7.4 million for clean energy projects through a business plan competition organised by a dutch organisation.

The "Access to Clean Energy Challenge East Africa" competition, whose deadline is mid January, 2010, has been organised by BiD Network, a Netherlands-based organisation that promotes entrepreneurship and economic growth in emerging markets.

Entrepreneurs in Kenya, Mozambique, Rwanda, Tanzania and Uganda are eligible to participate.

The competition presents a major opportunity for businesses in Kenya especially the small and medium scale enterprises to go big on clean energy business, whose profile and interest has been raised by the need to limit carbon dioxide emissions into the atmosphere.

Carbon dioxide is the principal cause of global warming, which is contributing to climate change and related consequences.

Successive research and realities in development countries show that lots more investments are being directed to clean energy projects.

Clean energy comprises wind, solar, biogas, hydro, liquefied petroleum gas, biomass like methane from agriculture and animal waste and energy efficiency solutions.

"Non-renewable energies are not excluded but the approaches to energy production, usage or financing should focus on established, affordable, reliable technologies that move communities up the energy ladder towards cleaner, more modern forms of energy," said a statement from the BiD Network.

Successful entrepreneurs will be considered for more than Sh7.4 million worth of finance.

Five winners will also travel to the Netherlands to meet social investors and business partners.

Winners will get expert advice on business start up from Barclays Bank and access to over 100 investors interested in supporting businesses that have a direct social impact in developing countries.

Entrepreneurs participating in this challenge will receive coaching, feedback and support in writing a complete business plan.

To be eligible, one must demonstrate that the business is established, expanding or starting up, small and medium size enterprise.

They need to show the business plan will have significant development impact; create jobs and improve standards of living; in need of investment capital ranging between Sh500,000 and Sh35 million; and that it is going to be sustainable within three years from assessment.

To participate, a business owner or one planning a start-up must first register on the BiD Network's website-- www.bidnetwork.org/cleanenergyafrica--submit an online application and the business plan.

All high quality business plans are eligible for the BiD Network Investor Matchmaking Services for funding whether or not they become finalists.

Among the local sponsors is the Barclays Bank that is providing funds which will be used to attract matching amounts of investment from BiD's network of social investors.

The contest is also supported by Jump Up and FMO, the entrepreneurial development bank of the Netherlands .

It is also supported with Sh50 million in investment matching funds.

These grant funds will be used to attract additional investment into the winning enterprises.

Vinit Chandra, CEO of Barclays Global Retail Banking in Emerging Markets, said the decision to support the project is because of the recognistion that "climate change is one of the greatest threats to the global community and financial services organisations have an important role to play in the transition to a low-carbon economy.

A recent Britain's Met Office report commissioned by Barclays Plc said climate change exposes Africa economies and individual businesses to significant risks, with severe climate events already causing losses of up to 15 percent of gross domestic product.

The figure is expected to rise if the trend is not reversed through conservation, cleaner production processes, use of renewable energy, carbon management and overall environmental responsibility.

A competition like this is seen as one of the factors that will define growth of clean energy industry in Kenya because of its ability to provide a reward for innovation and subsequent funding for the best business ideas.

Another is the related initiative by The Open Society Institute that has invited proposals to build climate change adaptation capacity at African universities.

The institute said the initiative seeks to support the development of African intellectual and institutional capacity to address the scientific, economic, sociological, and political issues.