In the first month of 2015, the African Development Bank (AfDB), Asian Development Bank (ADB), Caribbean Development Bank (CDB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), International Renewable Energy Agency and Abu Dhabi Fund for Development (IRENA/ADFD), Sustainable Energy for All (SE4ALL) initiative and the World Bank financed projects, published reports and otherwise undertook activities related to sustainable energy.
31 January 2015: In the first month of 2015, the African Development Bank (AfDB), Asian Development Bank (ADB), Caribbean Development Bank (CDB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), International Renewable Energy Agency and Abu Dhabi Fund for Development (IRENA/ADFD), Sustainable Energy for All (SE4ALL) initiative and the World Bank financed projects, published reports and undertook various other activities related to sustainable energy.
The banks announced increased financing for renewables and energy efficiency projects in Argentina, Cameroon, Cuba, Honduras, India, Iran, Kazakhstan, Kosovo, Mauritania, Saint Vincent and the Grenadines, Tanzania, Thailand, Turkey, Tuvalu and countries in Europe.
In Argentina, Cuba, Iran, Mauritania, and Saint Vincent and the Grenadines, IRENA/ADFD announced US$57 million in concessional loans for a four megawatt (MW) mini-hydro station; a 10 MW solar energy plant; a five MW geothermal facility for electricity and heat; a one MW hybrid solar and hydropower project; and a 10-15 MW geothermal project, respectively. The five countries are the beneficiaries of the IRENA/ADFD’s second project cycle; in total, their projects are expected to provide electricity to 280,000 people in rural areas. [IISD RS Story] [IRENA Press Release]
In Cameroon, AfDB’s Sustainable Energy Fund for Africa (SEFA) is supporting a 72 MW solar photovoltaic (PV) power plant. The funding, approved at the end of 2014, consists of a US$777,000 preparation grant awarded to JCM Greenquest Solar Corporation, which will develop the plant as the country’s first Independent Power Producer (IPP). The grant will fund environmental and social impact assessments and technical, legal and financial advisory services. [AfDB Press Release]
In Honduras, the World Bank Group’s International Finance Corporation (IFC) and the Climate Investment Funds (CIF) have announced US$146 million in financing to help SunEdison develop 81.7 MW of solar PV. The company will build three plants, which, taken together, will be the largest PV installment in Central America. The project is anticipated to produce 168 gigawatt hours (GWh) of electricity per year, reducing carbon emissions by 70,000 tons of carbon dioxide equivalent (CO2-e) annually. The project is the first committed under the CIF’s Clean Technology Fund’s (CTF) Dedicated Private Sector Programs (DPSP). [IISD RS Story] [CIF Press Release]
In India, ADB is providing up to US$100 million in loans to solar-power developer ACME. The loans, supplemented by US$100 million from IFC and commercial banks and estimated equity of US$65 million from ACME Solar Energy Private Ltd, will finance the construction of 200 MW of solar capacity. The projects, which support India’s Jawaharlal Nehru National Solar Mission, are expected to generate 380 GWh of electricity per year, avoiding approximately 280,000 tons of CO2 emissions. [ADB Press Release]
In Kazakhstan, EBRD signed off on a package of loans amounting to over US$70 million, which will modernize municipal infrastructure in the city of Kyzylorda. The funds will target water, wastewater, electricity and heating infrastructure, with US$10 million allotted to Kyzylorda Su Zhuyesi, a municipal water management company, US$24 million lent to Kyzylordateploelektrocentr, a municipal district heating and electricity production company, and US$24.7 million for Kyzylorda Regional Electricity Company, the power utility distributing electricity to the entire Kyzylorda region. The remaining funds are expected to go toward street lighting improvements. The Government of Kazakhstan is also contributing US$21.7 million. [EBRD Press Release]
In Kosovo, the World Bank and the Government have agreed to the Kosovo Energy Efficiency and Renewable Energy Project (KEEREP), under which the Bank will provide US$31 million in financing to help Kosovo implement its comprehensive energy strategy, both by increasing efficient use of available energy sources and encouraging greater use of renewables. The project will target the building sector, especially hospitals and universities. It will also increase government capacity to foster sustainable energy investments and improve the regulatory environment for companies in the sector. [World Bank Press Release]
In Tanzania, SEFA has announced the approval of a US$420,000 preparation grant for Jumeme – Rural Power Supply Ltd (JRPS) to finance the technical studies, lender’s due diligence support, and legal and financial advisory services needed to develop solar-hybrid mini-grids in rural growth centers. JRPS, a local joint venture, is anticipated to provide electricity to some 82,000 people, 11,000 households, 2,600 businesses, 42 public offices, 32 schools, 12 health centers and 77 religious buildings in the first phase of its project. [AfDB Press Release]
In Thailand, credit from ADB (US$55 million) and the CTF (US$30 million) will support the development of an 81 MW wind power plant by Chaiyaphum Wind Farm Company Ltd. The plant, which will sell its power to the state-owned Electricity Generating Authority of Thailand under a power purchase agreement (PPA), is expected to be operational by December 2016. [ADB Press Release]
In Turkey, EBRD has announced increased investment in the country’s geothermal energy sector in 2015. The Bank will assist in the financing of the 123 MW Germencik Geothermal Power Plant, a US$970 million project set to be the second largest geothermal plant in the world, with US$150 million. EBRD also plans to set aside US$125 million for early stage geothermal development in Turkey, with US$25 million of this funding coming from the CTF. [Anadolu Agency Energy News Terminal Press Release]
In Tuvalu, a US$7 million grant approved by the World Bank will support the Energy Sector Development Project (ESDP), assisting the country in meeting its targets of 100% renewable energy and a 30% increase in energy efficiency by 2020. The grant will fund the development of solar and wind energy, grid stability and electricity storage projects, as well as the supply and installation of prepayment and smart meters, insulation and other energy efficiency measures. [World Bank Press Release]
In Europe, EIB announced an investment of €40 million in the third renewable energy fund of Mirova, Eurodefime 3. The investment is aimed at both attracting other Franch and European investors to the renewable energy sector and directly supporting Mirova’s renewable energy investments, including two in France and numerous other potential opportunities, especially in northern Europe. Mirova is a subsidiary of Natixis Asset Management. [EIB Press Release]
On publications, ADB released the ‘Handbook for Rooftop Solar Development in Asia,’ which captures the experience the Bank gained in outfittng its own headquarters building in Manilia, the Philippines, with a large rooftop solar installation. The Handbook takes readers through the full process of realizing a rooftop solar project in an urban area, including project preparation, system design, procurement, implementation, operation and maintenance. [ADB Press Release] [Publication: Handbook for Rooftop Solar Development in Asia]
AfDB published a working paper titled ‘Household Energy Demand and the Impact of Energy Prices: Evidence from Senegal.’ The paper indicates that people in the poorest quintile of the Senegalese population spend a larger share of their budget on kerosene than their richer counterparts. The richest quintile’s budget share for transportation fuel, liquified petroleum gas (LPG) and electricity is the highest of all the quintiles. Given findings on differences of price elasticities for these goods and for different segments of the population, the paper suggests universal subsidies are not appropriate; rather, targeted fuel subsidies could better achieve the goal of reducing energy poverty. [AfDB Publication Webpage] [Publication: Household Energy Demand and the Impact of Energy Prices: Evidence from Senegal]
Bloomberg New Energy Finance (BNEF) announced the findings of research on clean energy technology investments globally, noting 2014’s investments comprised the first increase (16%) in the sector in three years. BNEF detailed its findings in several major economies: In China, renewable energy investments jumped 32% to US$89.5 billion. In India, investments increased to US$7.9 billion from US$7 billion in 2013; BNEF predicts an even greater increase in 2015, given positive policy interventions and rising cost competitiveness. In the US, investment grew 8% to US$51.8 billion, and Japan saw a 12% increase to a total of US$41.3 billion. Europe’s investment was US$66 billion, representing a 1% increase. [IISD RS Story] [BNEF Press Release – China] [BNEF Press Release – India]
On events and other initiatives, CBD, IRENA, IDB and the World Bank, along with the Caribbean Community (CARICOM) Secretariat, Organization of American States (OAS), the EU and the Governments of 26 countries, signed a statement committing to the pursuit of “clean sustainable energy for all” and favorable policy and regulatory environments for sustainable energy. That statement was signed at the Caribbean Energy Security Summit, held 26 January 2015 in Washington DC, US, in support of the Caribbean Energy Security Initiative (CESI). [IISD RS Story] [OAS Press Release]
SE4ALL launched the African Energy Leaders Group (AELG), which will promote policy reforms that have the potential to increase sustainable energy investment in Africa. The group, consisting of high-level African investors, financiers and policymakers, intends to encourage the use of public-private partnerships, regional power pools and support for research, development and deployment (RD&D) to accelerate the spread of sustainable energy access across the continent. [IISD RS Story] [SE4ALL Press Release]