Renewable Energy and Climate Change: The CIF Experience TITLE SLIDE Regional Expert Meeting on Climate Change and Enhanced Renewable Energy Deployment in Central Africa Libreville, Gabon June 1, 2016
CIF as is a Partnership partnership
EMPOWERING TRANSFORMATION Global Reach
CIF Overview
CIF Countries in the region (non SREP) Forest Investment Program Cameroon: Investment Plan under preparation Congo Republic: Investment Plan under preparation Democratic Republic of Congo: Specific investment areas include afforestation and reforestation, dissemination of improved cook stoves and charcoal making techniques, and support for communities capacity to sustainably manage their forest resources
Purpose To pilot and demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy
Approved Funding by Region USD 226 million Approved Funding by Technology USD 226 million
Armenia Mongolia Honduras Mali Ethiopia Yemen Kenya Nepal Solomon Islands Liberia Tanzania Maldives Vanuatu
In June 2014, the SREP Sub-Committee selected 14 new pilot countries to participate in the SREP. Africa Latin America & Caribbean Asia & Pacific Benin Haiti Bangladesh Ghana Nicaragua Cambodia Lesotho Kiribati Madagascar Malawi Rwanda Sierra Leone Uganda Zambia
Indicative Allocations for SREP Countries USD 75 million USD 50 million USD 40 million USD 30 million USD 5 million Bangladesh Madagascar Rwanda Malawi Uganda Benin Ghana Sierra Leone Zambia Cambodia Haiti Lesotho Nicaragua Kiribati Ethiopia Kenya Liberia Tanzania Armenia Mali Nepal Yemen Honduras Maldives Mongolia Pacific Regional (Solomon Islands, Vanuatu)
Investments (grant and credit) Eligible Investments: Solar, wind, bio energy, geothermal, small-hydro (<10 MW) Electricity and thermal On-grid, off-grid, mini-grid Capacity Building & Advisory Services (grant) Development of energy policies and legislation Assessment of technical resources potential Strengthening governance and institutional capacity Creation of incentive scheme to improve financial viability of RETs
Public Sector Credit Terms Maturity: 40 years Grace period: 10 years Service charge: 0.1% Principal payment (yr 11-20): 2% Principal payment (yr 21-40): 4% 13
Principles for Private Sector Investments Minimum concessionality Avoiding distortion and crowding out Maximum leverage Financial sustainability 14
Investment Plans in the region endorsed in November 2015 and with projects in the pipeline Rwanda The objective of the Rwanda IP is to develop financially sustainable long-term markets for the private-sector provision of off-grid electricity services. The program aims to catalyze private investments in off-grid electricity provision, particularly on mini-grids and stand-alone solar systems. SREP funds will also help improve enabling environment conditions to unlock and systematically scale-up private investments in off-grid electrification.
Issues and Challenges Resource availability: insufficient, unpredictable Grant resources: demand exceeding supply Challenges of countries: political instability, weak institutional capacity, natural disasters Project preparation: resource assessment, feasibility studies Project implementation: procurement, disbursement Changing circumstances: government priorities, market, technology
Rafael Ben. Energy Specialist Climate Investment Funds Email: rben@worldbank.org Tel.: +1202-790-1757 www.climateinvestmentfunds.org @CIF_Action https://www.youtube.com/user/cifaction https://www.flickr.com/photos/cifaction/sets