Renewable Energy and Climate Change: The CIF Experience TITLE SLIDE Regional Expert Meeting on Climate Change and Enhanced Renewable Energy Deployment in East and Southern Africa Addis Ababa, Ethiopia March 17-18, 2016
CIF as is a Partnership partnership
EMPOWERING TRANSFORMATION Global Reach
CIF Overview
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
PROJECT TITLE PROJECT DESCRIPTION MDB Ethiopia IP: $50 million endorsed Mar-12 Geothermal Sector Strategy and Regulations MDB approved projects in the region Create and implement a long-term strategy for the development of geothermal assets, with recommendation on options for private investment and participation SREP FUNDING (US$ M) EXPECTED CO- FINANCING (US$ M) CAPACITY INSTALLED (MW) ANNUAL ELECTRICITY OUTPUT (MWh) TARGETS a INCREASED ACCESS (people) IFC 1.5 0.5 - - - Lighting Ethiopia Develop a local private sector supplier market of off-grid lighting products for bottom-of-the-pyramid households; develop the capacity of local SMEs; mitigate climate change by switching from fossil fuel-based lighting to clean lighting IFC 1.6 0.7 - - - Geothermal Sector Development Project (GSDP) Kenya IP: $50 million endorsed Sep-11 Menengai Geothermal Development Project Better define the potential of geothermal resources through exploratory drilling in Aluto and Alalobad geothermal sites; support enhancement of legal, institutional, and regulatory framework Develop the Menengai geothermal steam field to produce enough steam for 400 MW that will be generated by the private sector as Independent Power Producers IBRD 24.5 304.0 70 552,000 1,100,000 AfDB 25.0 478.0 400 1,182,000 2,500,000 Electricity Modernization Project Support the development of 6-9 mini-grid investments (250-500kVA) with at least 1.5 2.25 MW installed capacity, including at least 0.5 0.7 MW of renewable energy capacity IBRD 7.5 13.2 1.5 1,242 13,500 Tanzania IP: $50 million endorsed Sep-13 Provide transaction advisory services and support the identification Mini-Grids Project of key risks and potential mitigants for 20-25 renewable-energy mini-grids IFC 4.8-10.5 37,942 67,375
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. Uganda 130MW Geothermal Development Program Decentralized Renewables Development Program Wind Resource Map and Pilot-Wind Power Development Program
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