February 2016: During the month of January, the African Development Bank (AfDB), Asian Development Bank (ADB), Eastern Europe Energy Efficiency and Environment Partnership (E5P), European Bank for Reconstruction and Development (EBRD), Nordic Development Fund (NDF), Nordic Environment Finance Corporation (NEFCO) and World Bank announced sustainable energy project funding and initiatives. In addition, the Inter-American Development Bank (IDB) and World Bank released reports related to financing and deploying clean energy.

The announced funding targets the sustainable energy sectors of Cape Verde, China, Egypt, India, Liberia, Papua New Guinea, the Philippines, Rwanda, Tanzania, Turkey and Ukraine, as well as the African region as a whole.

In Cape Verde, AfDB granted US$930,000 under the Sustainable Energy Fund for Africa (SEFA) to develop the world’s first wave-powered desalination system in Praia Grande. The Wave2O™ system will help alleviate the country’s freshwater shortages and is expected to eliminate 5,400 metric tons of carbon dioxide (CO2) per year. [AfDB Press Release]

In China, the World Bank’s International Bank for Reconstruction and Development (IBRD) approved a US$100 million loan for the Hebei Clean Heating Project, which aims to boost efficiency and environmental performance in heating systems in participating municipalities in Hebei province. [World Bank Project Webpage]

In Egypt, the World Bank’s International Finance Corporation (IFC) announced that a loan of up to US$50 million to the National Bank of Kuwait-Egypt will facilitate lending to medium-sized Egyptian businesses that want to invest in energy efficiency. The loan will enable the Bank to establish the first sustainable energy financing credit line in Egypt, so that borrowers can reduce their energy costs and increase competitiveness. [IFC Press Release]

In India, IFC is supporting the Madhya Pradesh State government in its quest to develop the 750 megawatt (MW) Rewa Ultra-Mega solar power project, set to be the world’s largest single-site solar power project. IFC’s role will be to use its expertise in public-private partnerships, leadership in renewable energy and convening power with investors to attract approximately US$750 million in private investments. IFC will structure and implement the transaction. [IFC Press Release]

In Liberia, 150,000 Liberians are in line for increased access to renewable energy with the approval of a US$27 million World Bank financing package. The financing, comprised of a US$25 million grant from the Strategic Climate Fund Scaling Up Renewable Energy Program and a US$2 million International Development Association (IDA) credit, will support construction of a mini hydropower plant, distribution of solar lanterns and installation of stand-alone solar systems. [World Bank Press Release] [World Bank Project Webpage]

In Papua New Guinea, ADB is administering a US$4.8 million grant from the Government of New Zealand, supplemented by US$400,000 from the Government of Papua New Guinea, to expand rural access to the electric grid and rehabilitate the Lake Hargy Hydropower Plant. [ADB Press Release]

In the Philippines, IFC and the Bank of the Philippine Islands agreed to a risk-sharing facility that will provide loans and technical advice to clients investing in renewable energy and energy efficiency projects. The PHP3.5 billion sustainable energy finance portfolio, for which IFC and the Bank will share the risk, includes distributed energy projects, Energy Service Companies (ESCO) projects and green building construction. [IFC Press Release]

In Rwanda, AfDB awarded the country a US$840,000 SEFA grant, which is expected to increase off-grid access from 5% to 22% by 2018 through the proliferation of “green mini-grids.” The 145,000 households that are anticipated to benefit from the funding will be connected to village- or district-level electrical distribution networks fed by a renewable energy source. The project hopes to attract private participation in the green mini-grid sector. [AfDB Press Release]

In Tanzania, NDF and the Ministry of Energy and Minerals signed a cooperation agreement to support the regional Geothermal Exploration Project. The cooperative activities will focus on selected geothermal areas in Tanzania to identify potential sites for exploration drilling. In line with the significant geothermal energy production capacity-building component, hands-on training for Tanzanian experts is also planned. [NDF Press Release]

In Turkey, EBRD and the Clean Technology Fund (CTF) of the World Bank-administered Climate Investment Funds (CIF) announced a programme to support exploratory geothermal drilling investments. Dubbed the “PLUTO” initiative, the project will focus on exploration in the first phase, with US$25 million in financing provided by CTF, and on drilling and construction of the power plant in the second phase, with US$100 million provided by EBRD. [EBRD Press Release] [Anadolu Agency Press Release]

Also in Turkey, EBRD approved a €75 million loan to aid the country’s largest steelmaker, Erdemir Group, in improving its energy efficiency. The company will use the financing to invest in high-tech equipment that can reduce the energy intensity of the steel manufacturing process. [EBRD Press Release]

In Ukraine, a joint €27.5 million financing package from E5P (€7.5 million investment grant), EBRD (up to €15 million loan) and NEFCO (€5 million loan) is helping the city of Lviv install a biogas plant for heat and power generation. The project is expected to generate significant energy savings. [EBRD Press Release]

In Africa, a new initiative by the AfDB, called the ‘Transformative Partnership on Energy’ will support the ‘New Deal on Energy for Africa.’ AfDB President Akinwumi Adesina presented the Transformative Partnership and New Deal at the World Economic Forum in Davos, Switzerland in January. The New Deal aspires to achieve universal energy access in Africa by 2025. The Transformative Partnership is envisioned as a platform for public-private partnerships for innovative financing in Africa’s energy sector. [AfDB Press Release]

On publications, IDB released projections for energy demand in a report titled ‘Lights On?: Energy Needs in Latin America and the Caribbean to 2040.’ The report predicts, inter alia, that the region will see an 80% hike in energy demand over today’s levels by 2040 despite some projected improvements in energy efficiency. [IDB Press Release] [Lights On?: Energy Needs in Latin America and the Caribbean to 2040]

The IFC published ‘A Solar Developer’s Guide to Pakistan,’ sharing important information for international investors and developers interested in the Pakistani market. The guidebook provides details on legal and regulatory issues and explains the requirements for the preparation, agreement, approval and implementation of projects through financial close. [IFC Press Release] [A Solar Developer’s Guide to Pakistan]

IISD RS publishes this update monthly, focusing on announced funding for sustainable energy projects and other sustainable energy finance-related developments from international financial institutions. The updates do not generally cover bilateral flows of finance or finance from private sector sources. 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]