During the month of October, the Asian Development Bank (ADB), Caribbean Development Bank (CDB), Economic Community of West African States (ECOWAS), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), UK Department for International Development (DFID) and World Bank announced sustainable energy project funding and initiatives.
ADB, the African Development Bank (AfDB), Bloomberg New Energy Finance (BNEF) and the World Bank also released reports on financing and deploying clean energy.
A number of related events took place throughout the month.
1 November 2015: During the month of October, the Asian Development Bank (ADB), Caribbean Development Bank (CDB), Economic Community of West African States (ECOWAS), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), UK Department for International Development (DFID) and World Bank announced sustainable energy project funding and initiatives. ADB, the African Development Bank (AfDB), Bloomberg New Energy Finance (BNEF) and the World Bank also 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 Armenia, Belgium, India, Indonesia, Kazakhstan, Moldova, Nauru, Poland, Romania, Serbia, Sweden, Tanzania, Tonga, the UK and in Africa and the Caribbean region.
In Belgium, an offshore wind farm received EIB backing under the Investment Plan for Europe. EIB is financing approximately 38% of the 165 megawatt (MW) project, called Nobelwind, with a €250 million loan, 40% of which is proposed for a guarantee under the European Fund for Strategic Investments (EFSI). [EIB Press Release]
In India, ADB and the Government signed a US$200 million loan agreement, the first tranche in a US$500 million financing facility, to support financing activities of the Indian Renewable Energy Development Agency (IREDA). IREDA will lend to eligible renewable energy subprojects, such as those employing wind, biomass, hydropower, solar and cogeneration technologies. As part of the Clean Energy Finance Investment Program, this public sector financing aims to catalyze private investment. [ADB Press Release]
In Indonesia, ADB announced it will aid the Ministry of Energy and Mineral Resources in establishing a Center of Excellence on Clean Energy by providing technical assistance to develop the initial concept. Among other things, the Center will help the Government reach energy efficiency and clean fuels goals, through coordination of research and knowledge, facilitation of clean energy investments and deployment of clean energy technology solutions. [ADB Press Release]
Also in Indonesia, ADB is boosting investment in the energy sector with a US$500 million loan, which includes US$100 million from the Association of Southeast Asian Nations (ASEAN) Infrastructure Fund. In part, the loan aims to: increase renewable energy supply through price incentives for geothermal, biomass and small hydropower; increase energy efficiency through improved standards and labels for electrical appliances and requirements for energy-efficient buildings and municipal facilities; lower energy subsidies; and scale cleaner fossil fuel technologies, such as carbon capture and storage (CCS). ADB anticipates US$800 million in co-financing from key development partners. [ADB Press Release]
In Kazakhstan, a US$11.5 million loan from EBRD will improve the energy efficiency of Aktobe’s district heating system. The upgrades and modernization, which will be co-financed with funds from the national programme of infrastructure support, are being carried out as part of the Enhanced Partnership Arrangement between EBRD and the Government of Kazakhstan. [EBRD Press Release]
In Moldova, Chisinau will benefit from more efficient street lighting through low-energy LED bulbs financed with a €11.7 million grant from EBRD and the Green Energy Special Fund and €10.3 million from EIB. The new lighting is expected to reduce energy consumption by 60%, saving the city €106,280 annually. The funds will also support upgrades to the city’s street network. [EBRD Press Release]
In Nauru, the Government of Australia announced US$4.74 million to support the ongoing Nauru Electricity Supply Security and Sustainability Project, which, inter alia, is improving the efficiency of Nauru’s electricity supply. The funding from Australia will finance an efficient medium-speed 2.6-3 MW diesel generator and 11kV switchgear. [ADB Press Release]
In Poland, a PLN1.5 billion loan from EIB will support energy efficiency and renewables’ integration in the country’s grid. [EIB Press Release]
In Romania, the electricity distribution company CEZ Distribuție will receive a syndicated EBRD loan of up to €153.7 million to invest in, inter alia, reducing losses, improving energy efficiency and installing smart meters. [EBRD Press Release]
In Serbia, EBRD announced a €200 million loan for reform in the power sector, with a view to helping the state-owned utility Elektroprivreda Srbije reach long-term objectives such as improving energy efficiency. [EBRD Press Release]
In Sweden, property company Fabege was the recipient of a €100 million loan from EIB for construction of near-zero-energy buildings. The two office buildings, to be equipped with modern renewable energy and energy efficiency technologies, will be located in Solna, a former industrial area being transformed into a sustainable district. [EIB Press Release]
In Tanzania, the World Bank Group’s International Finance Corporation (IFC) launched a US$5 million programme to develop a market for mini-grids and boost renewable energy access. The initiative, which falls under the Scaling up Renewable Energy in Low Income Countries Program (SREP), will help mini-grid developers create commercially-viable business models and advise financial institutions on extending long-term financing for project developers. [IFC Press Release]
Also in Tanzania, the IFC is supporting the development of the country’s first wind farm. The project, Singida, will have a capacity of 100 MW and is expected to cost US$285 million. IFC and its partners, Aldwych and Six Telecoms, committed US$18 million for the development stage and US$71 million in equity for later stages. IFC is also advising on environmental and social best practices and running technical studies. [IFC Press Release]
In Tonga, a US$1.44 million ADB Asian Development Fund concessional grant, US$3.57 million from the EU, US$0.75 million from Second Danish Cooperation Fund for Renewable Energy and Energy Efficiency for Rural Areas, and US$0.67 million from the Government of Tonga were committed to scale up the Outer Island Renewable Energy Project. The funds will help reduce diesel power generation and increase consumers’ access to solar power, while also reducing power distribution losses and fuel consumption. [ADB Press Release]
In the UK, the Galloper wind farm, to be constructed by RWE Innogy, became the first UK project to be backed by the Investment Plan for Europe, receiving £225 million in financing from EFSI. The offshore wind project will employ 56 of the world’s largest turbines to generate enough electricity for up to 336,000 homes. [EIB Press Release]
In Africa, DFID announced support for Power for All to accelerate the creation of markets for distributed renewable energy in 12 African countries. As part of the Energy Africa campaign launched by DFID on 22 October 2015, the UK’s support for Power for All will be focused on achieving universal energy access on the continent by 2030, with a focus on off-grid, solar and efficient technologies. [Power for All Press Release] [DFID Press Release]
In the Caribbean, IDB and CDB agreed to fund a Sustainable Energy Facility (SEF) for the Eastern Caribbean. Under the agreement, a US$71.5 million loan and grant package will support geothermal, energy efficiency and other sustainable energy projects in Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. [IDB Press Release] [CDB Press Release]
Also in the Caribbean, DFID agreed to contribute £2.5 million to the Sustainable Energy for the Eastern Caribbean (SEEC) Programme, administered by CDB. The Eastern Caribbean countries will benefit from grant resources blended with loans to support institutions and capacity building in the public sector, as well as some projects, with a focus on deploying energy efficiency and renewable energy solutions. SEEC also provides technical assistance. [CDB Press Release]
In West Africa, the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) opened a call for proposals for gender-responsive clean energy investments. Financing is being made available under the €5 million ECOW-GEN Facility, which has allocated €500,000 for 7-10 energy projects during its pilot phase (ending in June 2016). Applications are being accepted until 31 December 2015. [ECREEE Press Release]
On publications, ADB released a report on Myanmar’s power sector development, underscoring, inter alia, the importance of prioritizing energy efficiency. The report contains a number of recommendations to the Government, including conducting regular maintenance to improve efficiency, rationalizing the use of least-efficient generating equipment, and improving the implementation of energy efficiency and conservation measures by securing assistance for developing an effective energy efficiency programme and executing demand-side management. [ADB Press Release] [Publication: Power Sector Development in Myanmar]
ADB, in collaboration with the Global Subsidies Initiative (GSI) of the International Institute for Sustainable Development (IISD), published two reports on fossil-fuel subsidies, giving an overview of trends, impacts and reforms in Indonesia and Thailand. [ADB Press Release, Indonesia] [Publication: Fossil Fuel Subsidies in Indonesia: Trends, Impacts, and Reforms] [ADB Press Release, Thailand] [Publication: Fossil Fuel Subsidies in Thailand: Trends, Impacts, and Reforms]
ADB released a report, titled ‘Knowledge and Power: Lessons from ADB Energy Projects,’ which highlights the “urgency and necessity of sustainable energy initiatives” and features case studies of country projects in the areas of, inter alia, energy efficiency, solar energy, geothermal and waste-to-energy. [ADB Press Release] [Publication: Knowledge an Power: Lessons from ADB Energy Projects]
BNEF released data on clean energy investment in the third quarter of 2015, reporting that the US saw a 25% rise in investment over last year’s third quarter, while Brazil more than doubled its figure with a 131% increase. Investments reported in Chile jumped from US$180 million to US$1.6 billion. Worldwide investment totaled US$70 billion, a 1% drop over the figure from the same period last year. [BNEF Press Release]
The World Bank published the report, ‘Republic of Turkey: Institutional Review of Energy Efficiency,’ which concludes that while Turkey’s policy framework for energy efficiency is relatively strong, a number of institutional and functional gaps could prevent the Government from realizing its energy efficiency goals. [World Bank Press Release] [Publication: Republic of Turkey: Institutional Review of Energy Efficiency]
On events, BNEF convened The Future of Energy Summit on 12-13 October 2015 in London, UK. The event was the first Future of Energy Summit held in the Europe, Middle East and Africa region and focused on the three themes of markets, money and the mix of power generation technologies. [Event Website]
EBRD hosted the 2015 Sustainable Energy Excellence Awards ceremony on 22 October 2015 in Zagreb, Croatia, to honor sustainable energy projects in Croatia and the Western Balkans. Prizes were awarded in nine categories, recognizing “outstanding investments” in energy efficiency and low-carbon technologies in the commercial, residential and municipal sectors. [EBRD Press Release]
The Fourth International Off-Grid Lighting Conference was organized by the Global Off-Grid Lighting Association (GOGLA) and the World Bank on 26-29 October 2015 in Dubai, United Arab Emirates (UAE). The event explored the private sector’s role in bringing light and energy to the world’s poor. [IFC Press Release] [Event 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]