November 2014: During the month of November, the Asian Development Bank (ADB), African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Global Environment Facility (GEF), World Bank and other donors undertook activities and approved funding or finance for sustainable energy projects in, among other countries, Azerbaijan, the Cook Islands, France, Guinea-Bissau, Jordan, Kazakhstan, Kenya, Moldova, Nauru, the Netherlands, Romania, Serbia, Viet Nam and the Southern Africa region.

In Azerbaijan, EBRD launched ‘Energocredit,’ a financing facility that will support small- and medium-sized enterprises (SMEs), local businesses and households in increasing sustainable energy use. The facility, which is part of EBRD’s Sustainable Energy Initiative and the Caucasus Energy Efficiency Programme (CEEP), will extend a US$125 million credit line to local partner banks, which will provide loans to private businesses and households for energy efficiency investments. [EBRD Press Release]

In the Cook Islands, the Government, ADB and the EU are providing financing of US$24.28 million for the construction of solar plants, each with three megawatts (MW) of power generation capacity, on six islands. The project’s funding, which consists of a US$11.19 million loan from ADB’s Ordinary Capital Resources, a US$7.26 million grant from the EU and a contribution of US$5.83 million from the Government of the Cook Islands, will also assist the Office of the Energy Commissioner and the Renewable Energy Development Division to develop an energy efficiency policy implementation plan. [ADB Press Release]

In France, EIB and Banque Postale have partnered to provide €300 million in credit to local authorities and public and private healthcare establishments. The financing will be used for a variety of purposes, including the modernization of facilities, such as through energy efficiency measures. The first €100 million credit line was signed on 20 November 2014. [EIB Press Release]

In Guinea-Bissau, the GEF approved the project ‘Promoting Renewable Energy Investments in the Electricity Sector of Guinea-Bissau,’ which is being implemented by the UN Industrial Development Organization (UNIDO). The project will invest in medium-scale photovoltaics (PV), rural mini-grid hybrid systems, stand-alone PV, bioelectricity for industrial facilities, training, policy formulation and action plan development, as well as a hydropower project. Project partners include the Economic Community of West African States (ECOWAS) Centre for Renewable Energy and Energy Efficieny (ECREEE), Ministry of Energy and Industry, Ministry of Natural Resources, Associação para o Desenvolvimento pela Tecnologia, Engenharia, Saúde e Educação (TESE) and the Alliance of Small Island States (AOSIS) Sustainable Energy Island Initiative (SIDS DOCK). AfDB’s Sustainable Energy Fund for Africa (SEFA) and the Austrian Government are also supporting the hydropower project. [ECREEE Press Release]

In Jordan, EBRD and French Development Finance Institution PROPARCO are each providing US$50 million in loans to fund the installation of three solar PV plants in the southern part of the country. Together the plants will total 40 MW of installed capacity, helping to lessen Jordan’s dependence on imported fossil fuel resources. [EBRD Press Release]

In Kazakhstan, the EBRD and World Bank Climate Investment Funds’ (CIF) Clean Technology Fund (CTF) are supporting the construction, grid connection and commissioning of a 50 MW wind farm. EBRD is loaning €59.2 million to the project while CTF will provide €18 million in concessional financing. The project is the first large-scale wind farm to be financed under the country’s renewable energy legislation and feed-in tariff, which EBRD helped develop. [EBRD Press Release] [CIF Press Release]

In Kenya, the Last Mile Connectivity Project will receive a boost from a US$133 million AfDB loan. The project intends to utilize Kenya Power and Lighting Company’s (KPLC) 35,000 existing distribution transformers to increase energy access among rural and low-income Kenyans. The Government of Kenya is providing an additional US$14 million to cover the remaining cost of the project, which will be launched in March 2015. [AfDB Press Release]

In Moldova, the World Bank’s International Bank for Reconstruction and Development (IBRD) has approved a loan of US$40.5 million toward the District Heating Efficiency Improvement Project. The Project will modernize district heating services in Chisinau, improving energy efficiency and reducing heat loss. Chisinau customers are expected to have more reliable service as a result of the efficiency and infrastructure improvements. The project will also merge three companies in the sector, with a view to bolstering financial viability and streamlining management. [World Bank Press Release]

In Nauru, a US$2 million Special Funds grant from ADB, with a co-financing contribution of €2 million from the EU, will increase reliability of electricity service, reducing the number of outages endured by the population. The funding, which will be further supplemented by contributions totaling US$840,000 from the Government of Nauru, will also finance a new roof for the national utility’s power station. [ADB Press Release]

In the Netherlands, EIB and BNG Bank have signed a Memorandum of Understanding (MoU), under which the banks will cooperate to identify and invest in Dutch infrastructure, including renewable energy and energy efficiency projects. [EIB Press Release]

In Romania, EBRD is lending €15 million to Romania’s Banca Transilvania, which will provide loans of up to €1 million to SMEs investing in energy efficiency or renewable energy projects. The funds are being disbursed through EBRD’s Romania SME Sustainable Energy Financing Facility (RoSEFF) and are supplemented with funding from the EU for technical assistance and financial incentives for SMEs. [EBRD Press Release]

In Serbia, a loan of up to €10 million from EBRD will support energy efficiency and sustainable energy projects. EBRD’s Western Balkans Sustainable Energy Financing Facility II (WeBSEFF II) is providing the loan to Komercijalna Banka for on-lending to municipal and private entities, which will invest in building and industrial efficiency and small-scale renewables projects. [EBRD Press Release]

In Viet Nam, the construction of more than 1,000 kilometers of transmission lines and smart grid upgrades will be funded through a World Bank US$500 million loan. The loan, which IBRD is administering, will improve the efficiency, capacity and reliability of the country’s transmission infrastructure. The remainder of the project’s cost, which is estimated at US$731.25 million, will be financed by Viet Nam’s National Power Transmission Company. [World Bank Press Release]

In Southern Africa, the World Bank is providing a US$20 million International Development Association (IDA) grant to support the 12-country Southern African Power Pool (SAPP) in its preparation of feasibility studies and assessments for sustainable energy projects. The grant is intended to help mobilize funding by assisting the countries in meeting the legal documentation and information needs required by many investors. SAPP aims to implement large-scale power generation projects and transmit electricity across the region to increase energy access. [World Bank Press Release]

On a global scale, the World Bank committed to mobilizing US$60 million over five years for in-country clean cookstoves programmes. The commitment is part of the ‘Efficient Clean Cooking and Heating Partnership’ formed with the Global Alliance for Clean Cookstoves (GACC). [IISD RS Story] [World Bank Press Release]

In regard to publications, the Climate Policy Initiative (CPI) published its report, ‘The Global Landscape of Climate Finance 2014,’ which found global climate finance flows dropped for a second consecutive year. It notes that a significant portion of the drop is due to falling solar PV and other renewable energy technology costs. Overall, it finds the flows to clean energy are not sufficient in light of the International Energy Agency (IEA) estimate that an additional US$1.1 trillion in investments is need annually through 2050 to be in line with global climate change targets. [IISD RS Story] [Publication: Global Landscape of Climate Finance 2014]

The US Department of Energy (DOE) released a progress report on US sustainable energy financing through its Loan Programs Office (LPO). The ‘LPO Financial Performance Report’ documents the performance of loans and loan guarantees extended to US clean technology and low-carbon energy firms. The report finds that the programs administered by the office total US$30 billion. When translated into concrete results for climate and environment, the report estimates the programs have prevented 14 million metric tons of carbon dioxide (CO2) pollution and generated enough clean electricity to power 1 million average American homes. [Publication: LPO Financial Performance Report]

With regard to meetings, the CIF Trust Fund Committees and Sub-Committees held their semi-annual meeting, agreeing unanimously to confirm the Funds’ mandate. On its commitment to the mandate, the CIF governing body noted the need to maintain coherence and continuity in global climate financing, as well as the diversity of options. [IISD RS Story] [CIF Press Release]

A business development workshop organized by ADB’s Energy For All Partnership in India assisted clean cookstove manufacturers and distributors in their efforts to build sustainable business models. Participants examined investment proposals, risk instruments and alternative revenue streams that could bolster India’s clean cookstove sector. [IISD RS Story] [Energy For All Press Release]

Another ADB Energy For All workshop focused on energy access financing in Thailand. The workshop highlighted that output-based aid (OBA) cost-effectively facilitates the poorest communities’ access to energy and ensures accountability for results. Participants learned the mechanics of project design, which, presenters noted, should be accompanied by a public information campaign. [Energy For All Press Release]

EBRD, the EU and Kyrgyzstan held the first Sustainable Energy Excellence Awards in the country, celebrating accomplishments in the Kyrgyz energy sector enabled through the EBRD’s Kyrgyz Sustainable Energy Financing Facility (KyrSEFF). Four banks, 32 industrial enterprises, one municipality and numerous other entities were honored. [EBRD Press Release] [KyrSEFF Press Release]