During the month of November, the African Development Bank (AfDB), the Asian Development Bank (ADB), the Climate Investment Funds (CIF), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the French Development Agency (AFD) and the Inter-American Development Bank (IDB), among others, announced sustainable energy project funding and initiatives.
AfDB, IDB and Bloomberg New Energy Finance (BNEF) released reports on financing and deploying clean energy.
A number of related events took place throughout the month.
1 December 2015: During the month of November, the African Development Bank (AfDB), the Asian Development Bank (ADB), the Climate Investment Funds (CIF), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the French Development Agency (AFD) and the Inter-American Development Bank (IDB), among others, announced sustainable energy project funding and initiatives. AfDB, IDB and Bloomberg New Energy Finance (BNEF) released reports on financing and deploying clean energy. A number of related events took place throughout the month.
The announced sustainable energy initiatives are being implemented in Bangladesh, China, France, Mexico, Mongolia, Morocco, Pakistan, the Philippines, Romania, Rwanda, Samoa, Turkey and Uganda, as well the Southern and Eastern Mediterranean (SEMED) and Latin American and Caribbean regions.
In Bangladesh, CIF’s Scaling Up Renewable Energy in Low Income Countries Program (SREP) approved US$75 million in funding for grid-connected renewable energy, including 200 megawatts (MW) of utility-scale and rooftop solar photovoltaics (PV). The amount will also go towards mini- and off-grid solar technologies and advisory support for municipal waste-to-energy projects. [CIF Press Release]
In China, ADB approved a US$100 million loan to reduce energy consumption, phase out mercury use and cut greenhouse gas (GHG) emissions from the country’s chemical industry. [ADB Press Release]
In France, EBRD announced a €329 million financing programme with the country’s biggest independent power producer, Akuo Energy, to support the development of nine renewable energy power station projects powered by wind, solar and biomass sources. [EIB Press Release]
In Mexico, IDB has approved US$16 million in energy efficiency financing for a municipal light emitting diode (LED) street lighting project with the Mexican energy service company Optima Energía. [IDB Press Release]
In Mongolia, CIF SREP endorsed US$30 million in funding for solar and wind energy projects in remote parts of the country, aimed at increasing energy independence and meeting the Government’s 20% renewable energy target for 2020 and 30% target for 2030. [CIF Press Release]
In Morocco, EBRD will provide a loan of up to €35 million to the Office National de l’Electricite et de l’Eau Potable (ONEE) for the rehabilitation of 12 small- and medium-sized hydropower plants. [EBRD Press Release]
Morocco will also receive €126 million in financing from EBRD and Banque Marocaine du Commerce Exterieur (BMCE) for the 120 MW Khalladi wind farm outside of Tangiers. The project is the first renewable energy project EBRD has financed in the country. [EBRD Press Release]
In Pakistan, ADB has approved approximately US$1.4 billion in combined loan assistance for two power sector programs designed to enhance energy efficiency, boost revenues and reduce poverty. A US$990 million tranche will be used to introduce smart metering infrastructure through the Second Power Distribution Enhancement Investment Program, and US$400 million will support ongoing policy reforms through the Sustainable Energy Sector Reform Program. [ADB Press Release]
The Government of Pakistan will further receive €50 million in long-term loans from EIB for the rehabilitation of the Warsak hydroelectric power station. AFD and KfW will provide additional support for the project. [EIB Press Release]
In the Philippines, ADB signed a financing assignment agreement to support the operation of the largest wind farm in the country. EDC Burgos Wind Power Corporation (EBWPC), Eksport Kredit Fonden and a syndicate of international commercial banks will receive up to US$20 million for the 150 MW facility, which was completed in November 2014 in the Ilocos Norte province of Luzon. [ADB Press Release]
In Romania, EBRD is providing a syndicated loan of up to RON 675 million (€153.7 million equivalent) to the electricity distribution company, CEZ Distribuție. The funds will be used to reduce power losses, improve energy efficiency, install smart meters, restructure the company’s balance sheets, and provide working capital. [EBRD Press Release]
In Rwanda, CIF endorsed US$50 million in funding from the SREP to finance the private sector provision of off-grid electricity. Roughly 1.5 million Rwandans are expected to benefit from the programme, which aims to foster the enabling environment for the delivery of electricity to unserved communities in rural areas. [CIF Press Release] [AfDB Press Release]
In Samoa, the Samoa Renewable Energy Development and Power Sector Rehabilitation Project will receive US$7.55 million from ADB, with additional combined co-financing from the European Union and Government of New Zealand for the construction of a small hydropower plant on Upolu Island. [ADB Press Release]
In Turkey, EBRD approved a new investment strategy to guide the Bank’s investments over the next four years. The strategy focuses on five themes: energy efficiency, renewable energy and energy sector reform; infrastructure; innovation and improved corporate governance; gender equality and regional and youth inclusion; capital and local currency markets. [Anadolu Agency Press Release]
Also in Turkey, EIB announced a €200 million facility to support small- and medium-sized enterprises (SMEs), with a focus on investments in renewable energy and energy efficiency, in addition to manufacturing, trade and tourism, among others. [EIB Press Release]
In Uganda, CIF announced US$50 million in SREP funding to expand the use of wind, solar and geothermal energy, with particular emphasis on geothermal development, solar PV off-grid rural electrification and net metering, and the measurement of wind resources for pilot wind power projects. [AfDB Press Release] [CIF Press Release]
In the Southern and Eastern Mediterranean (SEMED) region, EBRD, CTF, Global Environment Facility (GEF) and Union for the Mediterranean launched a US$250 million financing framework to support the generation of renewable energy by the private sector. Four countries—Morocco, Egypt, Tunisia and Jordan—will receive support under the initiative, which will leverage private debt and equity funding and new business models to facilitate growth in the sector. [EBRD Press Release]
In the Caribbean region, IDB, together with the United States Trade and Development Agency (USTDA) and United States Department of Energy (DOE), signed a memorandum of understanding (MOU) to cooperate on programmes and activities for the promotion of energy security, renewable energy, energy efficiency and low-carbon technologies. The agreement, inter alia, aims to advance the objectives of the UN Sustainable Energy for All (SE4All) initiative. [IDB Press Release]
IDB also approved financing for an Energy Efficiency and Green Bond Facility in the Latin American and Caribbean region. The Facility aims to support countries in the implementation of their Intended Nationally Determined Contributions (INDCs), and was selected to receive up to US$217 million in funding in the first round of allocations of the Green Climate Fund (GCF). [IDB Press Release]
On publications, ADB has released a brochure on the Bank’s clean energy investments in the Asia and Pacific region. According to the brochure, ADB raised more than US$820 million in clean energy bonds since 2010 and, in 2014, invested a total of US$2.4 billion in renewable energy, energy efficiency and the switch to cleaner fuels. [Publication: ADB Clean Energy Bonds 2015]
The CIF Clean Technology Fund (CTF) released its 2015 Results Report of 55 projects approved by the Fund’s six multilateral development bank partners. The report presents project information over the past year on: GHG reductions, co-financing, installed capacity, energy savings, additional passengers, and economic, environmental, and social co-benefits. [CIF Press Release] [Publication: CTF 2015 Results Report]
IDB’s Multilateral Investment Fund and Bloomberg New Energy Finance (BNEF) have released a country-by-country assessment of clean energy activities in 55 emerging markets in Latin America and the Caribbean, Africa and Asia. Key findings in the report, titled ‘Climatescope 2015,’ include the identification of 50.4 gigawatts (GW) of new clean energy capacity in the countries studied, and the achievement of grid parity of solar and wind projects in several countries in the Latin American and Caribbean region. [IDB Press Release] [Publication: Climatescope 2015]
On events, members of the Infrastructure Consortium for Africa (ICA), during the consortium’s 11th annual meeting, expressed full support to help Africa meet the goal of achieving 300 GW in power from renewable energy by 2030. The meeting, held on 16-17 November 2015 in Abidjan, Côte d’Ivoire, further concluded that a lack of viable renewable energy projects, rather than access to finance, posed a challenge to achieving the 2030 target. [AfDB Press Release]
The first-ever African Development Bank Transport Forum (ATF 2015) took place under the theme ‘Sustainable Transport for an Integrated Africa’ on 26-27 November 2015 in Abidjan, Côte d’Ivoire. [AfDB Press Release] [ATF 2015 Website]
The CTI Private Financing Advisory Network (PFAN) held a project development and financing workshop on 11-12 November in Kiev, Ukraine. [CTI PFAN Workshop Website]
Climate finance news and developments outside of the sustainable energy sector are published in IISD RS’s monthly Climate Finance Update, available via the Climate Change Policy & Practice portal. [IISD RS Climate Finance Updates]