In February, the African Development Bank (AfDB), Asian Development Bank (ADB), Caribbean Development Bank (CDB), Climate Investment Funds (CIF) of the World Bank, European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB) and the UN Department of Economic and Social Affairs (UN-DESA) announced funding for sustainable energy projects.
Recipient countries include Belarus, Chile, Colombia, Ecuador, Germany, Honduras, India and the UK.
A number of regional initiatives were launched as well, for Europe, Latin America and the Caribbean, and the Middle East and North Africa (MENA).
The World Bank came out with several reports on the impact of its energy investments and opportunities moving forward.
In addition, new energy-related policies were announced by Turkey and the Economic Community of West African States (ECOWAS).
February 2015: In February, the African Development Bank (AfDB), Asian Development Bank (ADB), Caribbean Development Bank (CDB), Climate Investment Funds (CIF) of the World Bank, European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB) and the UN Department of Economic and Social Affairs (UN-DESA) announced funding for sustainable energy projects. Recipient countries include Belarus, Chile, Colombia, Ecuador, Germany, Honduras, India and the UK.
A number of regional initiatives were launched as well for Europe, Latin America and the Caribbean, and the Middle East and North Africa (MENA). The World Bank came out with several reports on the impact of its energy investments and opportunities moving forward. In addition, new energy-related policies were announced by Turkey and the Economic Community of West African States (ECOWAS).
In Belarus, EBRD is assisting one of the country’s largest milk-processing plants in reducing energy costs and minimizing power supply losses through the Belarus Sustainable Energy Finance Facility (BelSEFF). BelSEFF financing is being provided to LLC Torsti, a private Energy Services Company (ESCO), to build, own, operate and transfer (BOOT) two new steam boilers and a new heat and power unit that uses waste heat from electricity generation at Kalinkovichi Dairy. Annual savings from the project are expected to be US$2.9 million and 2,900 tonnes of carbon dioxide (CO2) emissions. [EBRD Press Release]
In Chile, CIF’s Clean Technology Fund (CTF) has approved US$24.5 million in grant funding for the ‘Energy Efficiency and Self-Support Renewable Energy Program (PEEERA),’ which will be implemented with the support of IDB. The project targets solar photovoltaic (PV), biogas, biomass, cogeneration, efficient lighting, motor, compressor, boiler, chiller, thermal insulation and other energy efficiency technologies. The programme is expected to result in at least 36 megawatts (MW) of new renewable energy generation capacity, at least 87 gigawatt hours (GWh) in annual energy savings from efficiency projects and greenhouse gas (GHG) emissions savings of at least 1.6 megatons of CO2-equivalent (MtCO2-e). [CIF Document Page] [Project Proposal]
In Colombia, US$4.31 million in grant funding was approved by CTF for the project ‘Innovative Instruments to Foster Energy Efficiency in SMEs in Colombia.’ Under the project, with the support of IDB, small- and medium-sized enterprises (SMEs) will benefit from easier access to specialized energy efficiency financial and technical services to lower energy costs and contribute to GHG emission reductions of approximately 850,000 tons of CO2-e over the lifetime of the financed projects. [CIF Document Page] [Project Proposal]
In Ecuador, a policy-based programmatic loan (PBP) totaling US$500 million from IDB will support modernization of the electricity sector, including the substitution of liquefied gas from oil with electricity. The project is aimed at increasing the sustainability of the electrical grid, easing dependence on fossil fuels, boosting rural energy access and advancing regional electrical interconnection. [IDB Press Release]
In Germany, EIB is supporting the company OSRAM GmbH with a €200 million research loan for its work on low-energy lighting products, such as opto-semiconductors for light-emitting diodes (LEDs) that last longer and consume much less power for the same light intensity. [EIB Press Release]
In Honduras, IDB is supplying a US$5 million loan to Corporación Industrial del Norte, SA (Corinsa) to install PV solar panels on its bottling plant buildings in San Pedro Sula. The 3-MW installation will provide 20% of the plant’s electricity needs, making it the largest rooftop, industrial-scale PV system in Latin America. The loan, which meets half of the overall cost of the project, is part of IDB’s US$50 million Energy Efficiency Finance Facility (EEFF). The PV project will be supplemented with energy efficiency improvements; together the investments are expected to reduce CO2 emissions by approximately 53,000 tons. [IDB Press Release]
In India, ADB is providing a US$50.2 million loan for improvements in the power transmission and distribution network in the state of Assam. This is the fourth tranche in the US$200 million multi-tranche financing facility for the Assam Power Sector Enhancement Investment Program. The project is expected to increase energy efficiency and reduce technical and commercial losses. The Government of Assam is financing US$18 million of the project. [ADB Press Release]
In the UK, EIB is backing a transmission link to the world’s second largest wind farm with £51 million, using the project bond credit enhancement facility to improve the credit rating of bonds issued to finance the project. Gwynt y Môr is a 576-MW offshore wind farm with 160 turbines able to meet the energy needs of 400,000 homes. [EIB Press Release]
On regional funding initiatives, EIB’s Board approved €5.8 billion in new loans for strategic infrastructure, resource efficiency, the knowledge economy and research investment, and to boost investment by SMEs and mid-cap companies across Europe. Among the projects approved were an energy investment in Armenia and support for a private equity fund that focuses on electricity access in Africa. [EIB Press Release]
In Latin America and the Caribbean, CTF approved US$20 million in grants for the project ‘LAC Regional: Energy Efficiency and Self-Supply Renewable Energy Program.’ IDB expects the programme, which will be implemented in the region’s CIF pilot countries, will result in at least 35 MW installed capacity of self-supply renewable energy and 43,000 MWh savings in annual electricity usage. The resulting GHG emission reductions are estimated at 1.6 million tons of CO2-e over 20 years. [CIF Document Page] [Project Proposal]
In the Caribbean, CDB has announced that it is looking for opportunities to include renewable energy and energy efficiency components in all of its projects wherever possible. The Bank intends to prioritize public and private sector investments in sustainable energy, in line with its Climate Resilience Strategy, through the creation of special products using concessionary terms. Two special facilities proposed for these purposes are the geothermal energy development facility and the Sustainable Energy for the Eastern Caribbean (SEEC) Programme. [CDB Press Release]
In the MENA region, the ‘SEMed Private Renewable Energy Framework (SPREF)’ project was approved by CTF. Under the project, US$35 million will support EBRD in its efforts to help the Southern and Eastern Mediterranean Region (SEMed) establish the necessary legal and regulatory framework to encourage the financing, construction and operation of renewable energy projects by the private sector. [CIF Document Page] [Project Proposal]
On a global scale, UN-DESA launched an annual grant programme titled ‘Powering the Future We Want – Recognizing Leadership and Innovative Practices in Energy for Sustainable Development.’ US$1 million will be awarded to the grant recipient, who must be an individual or institution that has demonstrated leadership in developing sustainable energy projects and improving living standards. Applicants must also be active in capacity-building and international cooperation on energy; the funds will be used to scale up successful capacity building in the sustainable energy realm. [UN DESA Press Release] [Powering the Future We Want Website]
On publications, the World Bank, at the request of the Government of India, reviewed the evolution of the Indian power sector since the Electricity Act of 2003, noting problems with subsidy payments, availability and quality of power, and political interference. The report, titled ‘More Power to India: The Challenge of Electricity Distribution,’ recommends, among other things, strengthening the grid to absorb power flows, especially from renewables. [World Bank Press Release – India] [More Power to India: The Challenge of Electricity Distribution]
The World Bank summarized results from Armenia’s Energy Efficiency Project, financed by the Global Environment Facility (GEF), emphasizing the improvements to quality of life, health, education and work environments from warmer homes, hospitals, schools and businesses. The outcomes also include significant savings in energy costs. [World Bank Press Release]
In Kenya, the World Bank reported that two new geothermal plants were commissioned, adding 280 MW of capacity for electricity generated from renewables. The plants, Olkaria 1 and Olkaria 4, were supported by the World Bank, Japan International Cooperation Agency (JICA), EIB, French Agency for Development (AFD) and Germany’s KfW Development Bank. Geothermal is now the largest source of electricity in Kenya. [World Bank Press Release]
In Kyrgyzstan, the World Bank conducted a ‘Heating Assessment for the Urban Building Sector,’ highlighting the need to modernize the district heating system with more efficient equipment and institute energy efficiency programmes for public and residential buildings. The short-term investments needed are estimated at US$214 million, the medium- and long-term at US$515 million. [Word Bank Press Release] [Heating Assessment for the Urban Building Sector of the Kyrgyz Republic]
In Sub-Saharan Africa, mining companies could catalyze investment in electricity generation from clean sources, according to the World Bank publication ‘The Power of the Mine: A Transformative Opportunity for Sub-Saharan Africa.’ In the interest of meeting their own growing energy demand, they could provide a stable customer base for utilities, while the power producers expand infrastructure to provide low-cost power to communities. [World Bank Press Release] [World Bank Feature Story] [The Power of the Mine: A Transformative Opportunity for Sub-Saharan Africa]
On new policy initiatives, Turkey, with the support of EBRD, published its first National Renewable Energy Action Plan. Under the Plan, the country intends to increase renewables’ share of installed electricity capacity to 30% by 2023, by adding 34 GW of hydropower, 20 GW of wind energy, 5 GW of solar energy, 1 GW of geothermal and 1 GW of biomass. The Plan also aims to provide for 10% of the transport sector’s needs with renewables. [EBRD Press Release] [Anadolu Agency Energy News Terminal Press Release]
ECOWAS took initial steps toward creating a ‘Policy for Gender Mainstreaming in Energy Access and Its Implementation Strategy’ with an inception workshop on 24 February 2015. The workshop, hosted by AfDB, the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) and the US National Renewable Energy Laboratory (NREL), focused on creating a strategy for dismantling barriers to women’s participation in advancing energy access in West Africa. [AfDB Press Release 1] [AfDB Press Release 2]