CARICOM’s Commercialization of energy efficiency programs and projects in the Caribbean.

As part of its mandate to promote resilient energy matrices region-wide, CARICOM has identified the promotion of investment into energy efficiency programs and projects as a priority action item.

On April 5th at 10.00am EST, the Caribbean Community (CARICOM) Secretariat and New Energy Events will co-host a webinar focused on new approaches to the commercialization of energy efficiency programs and projects in the Caribbean.

Confirmed panelists:

Jacob Corvidae, Manager, Rocky Mountain Institute

Kelly Tomblin, President & CEO, Jamaica Public Service Co.

Dr. Devon Gardner, Programme Manager, Energy, CARICOM

Joseph Williams, Sustainable Energy Advisor, Caribbean Development Bank

Despite the obvious potential for investment in energy efficiency across the Caribbean, the markets are yet to take off in any meaningful way. The unavailability of sustainable and affordable financing is widely recognized as the most significant hurdle to commercialization. The webinar will explore an emerging alignment of stakeholders around energy efficiency investments, and examine a number of innovative approaches to financing.

Topics will include:

• How do we introduce investment in energy efficiency into the mainstream?

• How do regional utilities look at investment in EE initiatives from a long-term ROI perspective? How can we align economic incentives to motivate utilities to invest in EE?

• What can we learn from the experience of other markets and other utilities? Hawaii, for example?

• What is the Integrated Utility Service (IUS) model? What can we learn from the initial experience in Fort Collins?

• How might utility-centric EE programs align with public sector and multilateral objectives and with what implication for the financing of EE programs?

• How do we de-risk EE investment?

• What are the opportunity costs associated with the inability of the current “market will deliver” philosophy to tap the regional EE potential?

• What are the key stakeholders – utilities, utility regulators, governments, multilaterals and private investors – prepared to do in order to deliver clean, efficient, reliable and cost-effective energy services to end-users? More

Register Now!

 

July 2015 Sustainable Energy Finance Update

1 August 2015: During the month of July, the African Development Bank (AfDB), the Caribbean Development Bank (CDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Global Environment Facility (GEF), the Inter-American Development Bank (IDB) and the World Bank announced sustainable energy project funding and initiatives.


The Asian Development Bank (ADB), AfDB, the European Commission, EIB and the World Bank also released publications on financing and deploying clean energy

The announced sustainable energy initiatives are being implemented in Anguilla, Argentina, Burkina Faso, Cambodia, Chile, Denmark, France, Georgia, Guinea-Bissau, Kenya, Mali, Montenegro, Spain, Turkey, the UK, Ukraine, Uruguay, Zambia and the Middle East and North Africa (MENA) region.


In Argentina, IDB approved US$14.4 million in financing from the GEF for a housing project that integrates energy efficiency and renewable energy to improve the quality of life of residents and reduce greenhouse gas (GHG) emissions. Using renewable energy schemes adapted for each of Argentina's eight bio-climactic zones, 128 prototypes will be built and monitored for a year. US$70.7 million in local funds and a US$1 million IDB technical cooperation grant will also support the project. [IDB Press Release]


In Burkina Faso, AfDB granted €25.35 million from the African Development Fund (ADF) to support the programme for budget support in the energy sector (PASE). The funds will be largely directed to improving the electricity supply for basic social sectors, public services, the private sector and households. The funds are intended to increase reliability and energy access, as just 17.6% of the population currently has access to electricity. [AfDB Press Release]


In Cambodia, the UN Industrial Development Organization (UNIDO) launched a project promoting commercial biogas plants with US$1.5 million in funding from the GEF. The project aims to increase rural electrification and energy access by installing plants with 1.5 MW in cumulative generation capacity and mitigate climate change by avoiding 1.3 megatons carbon dioxide equivalent (MtCO2e) in emissions directly and 3.3 MtCO2e indirectly over 15 years. [UNIDO Press Release]


In Chile, the World Bank Group's International Finance Corporation (IFC) signed an agreement with Banco Consorcio in support of non-conventional renewable energy projects. Under the agreement, IFC will provide a US$60 million credit line to finance, inter alia, small hydropower, biomass, solar, geothermal and wind. [IFC Press Release]


In Denmark, EIB announced the first transaction in the country under the Investment Plan for Europe: up to €75 million in equity-like financing to Copenhagen Infrastructure Partners (CIP) for the Copenhagen Infrastructure II fund. The fund is an “innovative” renewable energy infrastructure fund focusing primarily on newly established greenfield energy-related investments, such as large-scale offshore wind, biomass and transmission projects, in Western and Northern Europe. [EIB Press Release]


In France, EIB undertook its first equity participation under the Investment Plan for Europe, providing €50 million for Capenergie 3, an investment fund dedicated to renewables and managed by Omnes Capital. It is anticipated that the investment will finance 500 MW of generating capacity. [EIB Press Release]


In Georgia, EBRD facilitated the sale of over 400,000 carbon credits from the Enguri Hydro Power Plant to Statkraft, a Norwegian electricity company. EBRD's Carbon Project and Asset Development Facility (CPADF) provided technical assistance for the sales strategy and emissions reductions verification. The project, registered under the Kyoto Protocol's Clean Development Mechanism (CDM), was able to partially recover costs associated with carbon project development through the sale of the credits. [EBRD Press Release]


In Guinea-Bissau, AfDB announced the approval of a €9 million loan and a €7.7 million grant for a three-year programme aimed at reducing daily power outages and increasing electricity access in the capital, Bissau. The funding will connect 10,500 new subscribers to electricity, rehabilitate facilities for 31,000 existing subscribers, improve the efficiency of the system's infrastructure and improve management and governance of the National Electricity and Water Corporation. [AfDB Press Release]


In Kenya, the World Bank's Climate Investment Funds (CIF) approved US$218,000 for the second tranche of the Electricity Modernization Project under the Scaling Up Renewable Energy in Low-Income Countries Program (SREP). The funds are for implementation and supervision services for the project, which is aimed at increasing electricity access and reliability in the country. [CIF Document Page] [Project Proposal]


In Mali, IFC and Scatec Solar announced a partnership to develop the US$55 million Scatec Segou solar power project in cooperation with Africa Power 1. IFC is investing US$12.5 million in the 33-MW plant, in addition to taking on a 20% equity stake in the project company for US$2.5 million. The project will support Mali's goals of increasing the share of electricity generated from renewables and enhancing energy supply and access. [IFC Press Release]


In Montenegro, EBRD is providing a senior secured loan of up to €48.5 million to Krnovo Green Energy, a subsidiary of the French company, Akuo Energy, to develop the country's first commercial wind farm. KfW Development Bank is providing an equivalent loan for the 72-MW plant through its subsidiary, KfW IPEX-Bank. [EBRD Press Release]


In Spain, EIB granted the Spanish company Abengoa a €125 million loan for research, development and innovation (RDI) activities related to, inter alia, advanced electrical systems and renewable energies. The company's RDI programme is focused on clean/green energy and environmental technology breakthroughs that significantly benefit the environment. [EIB Press Release]


In Turkey, EBRD announced US$180 million in financing for mid-sized renewable energy projects, including solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency. The funds, sourced from the Turkey Mid-Size Sustainable Energy Financing Facility (MidSEFF), will be on-lent by Turkey's Garanti Bank and Yapi Kredi Bank to private sector companies. [EBRD Press Release]


Also in Turkey, IFC approved a US$75 million long-term financing package for energy efficiency investments by the Turkish flat glass manufacturer, Trakya Cam. The company will use the funds for improving waste heat recovery and rehabilitating furnaces in plants located in both Turkey and Bulgaria. In addition to significantly reducing costs, the project is expected to cut GHG emissions by over 60,000 tons annually. [IFC Press Release]


In the UK, the National Trust, a conservation charity, revealed plans to invest £30 million in renewable energy projects, including a 200-kilowatt (kW) lake source heating project, two biomass boilers and a 250-kW hydropower project. [National Trust Press Release]


In Ukraine, the Nordic Environment Finance Corporation (NEFCO) signed five grant agreements for five cities in the eastern part of the country to implement energy efficiency measures. The funding is sourced from the NEFCO-administered Nordic Energy Efficiency and Humanitarian Support Initiative (NIU), which focuses on refurbishing municipal buildings and social infrastructure, especially schools, day care centers and health centers, in vulnerable areas of eastern and southern Ukraine. [NEFCO Press Release]


Also in Ukraine, medium and large municipalities will benefit from EIB loans totaling €400 million for 25-40 public infrastructure energy efficiency projects. The funds will be directed to central, regional or local government agencies, public utilities and municipalities by the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine. EIB's financing will cover up to 50% of total costs, with supplementary financing coming from other international financial institutions (IFIs). [EIB Press Release]


In Uruguay, US$55.7 million in loans from IDB will finance six solar PV plants, totaling 69.9 MW in generating capacity. The IDB-administered China Co-Financing Fund and the Canadian Climate Fund for the Private Sector are co-financing the project with additional loans of US$19.3 million and US$10 million, respectively. Producing an estimated 154.4 gigawatt-hours (GWh) per year, the plants will reduce CO2 emissions by approximately 74,000 tons annually. [IDB Press Release]


In Zambia, IFC signed a memorandum of understanding (MoU) with the Industrial Development Corporation (IDC) of Zambia to explore development of the country's first utility scale PV projects as part of IFC's Scaling Solar programme. The two 50-MW projects would help address a hydropower shortfall caused by low rainfall. [IFC Press Release]


In the MENA region, IFC announced a US$25 million investment for renewable energy projects, especially wind and solar plants. The investment takes the form of equity in Alcazar Energy, which will develop and operate the projects in Africa, the Middle East and Turkey. [IFC Press Release]


On publications, ADB released three volumes in a series on power planning as part of the ADB project ‘Ensuring Sustainability of the Greater Mekong Subregion (GMS) Regional Power Development.' The series explains how strategic environmental assessment contributes to better policymaking in the power sector, how indicators are used to analyze power development plans, and how sustainability assessment and the consideration of wider impacts can affect decisions in power planning. [ADB Press Release, Vol 1] [Integrating Strategic Environmental Assessment into Power Planning] [ADB Press Release, Vol 2] [Identifying Sustainability Indicators of Strategic Environmental Assessment for Power Planning] [ADB Press Release, Vol 3] [How Strategic Environmental Assessment Can Influence Power Development Plans: Comparing Alternative Energy Scenarios for Power Planning in the GMS]


ADB also published a series of three reports on the potential of renewable energy and energy efficiency in the GMS. The publications are part of a study under the ADB project ‘Promoting Renewable Energy, Clean Fuels, and Energy Efficiency in the GMS.' [ADB Press Release, Report 1] [Renewable Energy Developments and Potential for the GMS] [ADB Press Release, Report 2] [Energy Efficiency Developments and Potential Energy Savings in the GMS] [ADB Press Release, Report 3] [Business Models to Realize the Potential of Renewable Energy and Energy Efficiency in the GMS]


AfDB released the Sustainable Energy Fund for Africa (SEFA) annual report, highlighting that it reached US$6.5 million in commitments in its project portfolio in 2014. The report also underscores achievements such as launching the Africa Renewable Energy Fund, distributing enabling environment grants to help attract private sector investment and co-sponsoring the Second West Africa Forum for Clean Energy Financing (WAFCEF-2) business plan competition. [AfDB Press Release] [SEFA 2014 Annual Report]


The European Commission's Joint Research Centre (JRC) issued its 2014 wind status report, finding that wind meets 8% of Europe's electricity demand and predicting a 12% electricity share by 2020. With a focus on the EU, the report outlines the state of the economics, market and technology in the wind sector, with relevant comparisons to other regions. [JRC Press Release] [2014 JRC Wind Status Report]


EIB released an information brief on Africa's energy challenges, describing EIB's financial and technical support for the continent's efforts to build accessible and efficient power generation from sustainable sources. According to the brief, almost 25% of EIB operations in Sub-Saharan Africa and more than 33% in North Africa are dedicated to the renewable energy sector. [EIB Press Release] [Tackling the Energy Challenge in Africa]


EIB also released the annual report of the EU-Africa Infrastructure Trust Fund, which highlights the significant renewable energy investments of the Fund, including €33 million for the Sustainable Energy for All (SE4All) initiative. [EIB Press Release] [EU-Africa Infrastructure Trust Fund 2014 Annual Report]


The World Bank, in partnership with Bank of America Merrill Lynch, the Brazilian Development Bank (BNDES) and the SE4All Finance Committee, published recommendations for increasing the world's investment in clean energy. The report suggests four thematic areas that could collectively mobilize US$120 billion. [World Bank Press Release] [SE4All Press Release] [UN Press Release] [Scaling Up Finance for Sustainable Energy Investments] [IISD RS Story]


The World Bank's Energy Sector Management Assistance Program (ESMAP) conducted wind resource mapping in Tanzania and published the interim results. [Wind Resource Mapping in Tanzania: Candidate Site Identification Report]


The World Bank also released a study highlighting the positive energy access outcomes that can be achieved through energy efficiency measures. The report recommends factoring energy efficiency into development projects, based on an examination of eight recent World Bank projects. [World Bank Press Release] [EA + EE: Enhancing the World Bank's Energy Access Investments Through Energy Efficiency]


On events, IDB hosted an event, titled ‘LAC2025: Water Energy Food and Mining Nexus,' on 6 July 2015. The event considered how resource-related policy decisions today will affect future generations in Latin America and the Caribbean (LAC). Topics ranged from the depletion of aquifers and water pollution to resource rights. [IDB Event Announcement]


The World Bank sponsored an Indian delegation's visit to Brazil to learn about the country's experience in scaling up renewable energy to meet growing demand. As a result of the exchange, the two countries are working toward an MoU to cooperate on matters related to integrating variable renewable energy into the grid. [World Bank Press Release]


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]



read more: http://larc.iisd.org/news/july-2015-sustainable-energy-finance-update/


 

 

 

Civil Aviation Unveils Design For New Cayman Air Terminal

The Cayman Islands Airports Authority (CIAA) has unveiled the interior conceptual drawings for the multi-million dollar expansion project at Owen Roberts International Airport (ORIA).

Commenting on the design created by Florida based firm RS&H Group, CIAA’s CEO Albert Anderson said, “The interior design is very impressive and I am confident that once completed the new expanded airport will be a first-class terminal facility

The CI$55 million expansion project should take around three years to complete and will nearly triple the current space at the airport. Construction on the first phase of the project is expected to begin this summer.

Here is the Cayman Islands Government's chance to save money and show their support for alternative energy. Covering the roof and parking lots with solar panels, and using LED lighting would set an example for Caymanians and Caymanian businesses to follow. Editor

 

Weak climate deal would jeopardise new development goals – experts – TRFN

LONDON, May 15 (Thomson Reuters Foundation) – The world's chances of achieving new international development goals will be slim without more ambitious action to curb climate change, researchers said.

Dr. Ulric 'Neville' Trotz

Pakistan, for example, is unlikely to be able to end poverty by 2030 if accelerating climate change brings worse weather disasters, water scarcity and other problems, a new report from the UK-based Climate and Development Knowledge Network said.

But if global warming is held to 2 degrees Celsius – the aim of negotiations toward a new U.N. climate deal at the end of the year in Paris – Pakistan would have only a “low” risk of failing to eradicate poverty, the report said.

Planned new sustainable development goals (SDGs) aimed at ending poverty, improving gender equality, and giving access to water and clean power have a much higher chance of being achieved if action to limit climate change is ambitious, the report's authors said.

But if weaker efforts on climate change put the world on track for a 3 to 5 degree Celsius temperature rise, Asia and sub-Saharan Africa could see poverty rates 80 percent to 140 percent higher, the report found.

If the new sustainable development goals, expected to be agreed in New York in September, have strong targets, they could lift ambition in the year-end climate deal, the report said.

“There's a simple message: Climate action is developmental action,” said Ulric “Neville” Trotz, a science advisor at the Caribbean Community Centre for Climate Change in Belize.

Countries need to fully incorporate climate action into national development plans, he added.

The report, by a team of economic policy and development experts, is one of the first attempts to put rough numbers on how the two new global deals due this year on climate change and sustainable development might interact.

States are negotiating over a proposal for 17 new sustainable development goals, backed by 169 targets, focused on everything from reducing inequality, hunger and climate change to managing forests and oceans better and promoting sustainable economic growth.

At the climate negotiations in December, leaders will aim to put in place an agreement, which would take effect in 2020, to curb carbon emissions and help poorer countries adapt to climate change and adopt a cleaner development path.

ZERO POVERTY, ZERO EMISSIONS

There are huge areas of overlap, experts say, not least because climate change impacts – such as water insecurity and more weather-related disasters – can cut harvests and incomes, and lead to children leaving school, as well as forcing governments to divert development funds to disaster relief.

“There's a simple message: Climate action is developmental action,” said Ulric “Neville” Trotz, a science advisor at the Caribbean Community Centre for Climate Change in Belize.

Investing in cleaner, cheaper energy could not only cut climate risks but also improve health and provide the power needed to spur economic growth, the researchers said.

Many Caribbean islands, for example, rely on expensive imported fossil fuels, making their economies uncompetitive.

They are also extremely vulnerable to climate-related impacts, such as sea-level rise and stronger storms, said economist Anil Markandya, one of the report's authors.

“Unless we change the architecture of our energy sector, we might as well forget development under the SDGs,” Trotz said.

Funding that change would require international support, such as from the new Green Climate Fund (GCF), he added.

Andrea Ledward, head of climate and environment for Britain's Department of International Development and a GCF board member, told a launch event for the report there is a need to “break down the firewall” between funding for climate and development projects because the two areas are so closely tied.

Rich nations have committed to mobilise by 2020 an annual $100 billion in climate finance that is “new and additional” to existing funding.

Jonathan Reeves of the International Institute for Environment and Development said that while climate and development funding streams could be merged, the accounting must be kept separate to ensure the money is “new and additional”.

He warned that the least-developed countries have the most to lose if efforts to address climate change fail.

“If your country is going to be submerged within a couple of generations by sea-level rise, you're not even going to be thinking about achieving the SDGs,” he said.

Ilmi Granoff, a researcher with the Overseas Development Institute in London, said public support for an ambitious climate deal and strong sustainable development targets could be won by focusing on a new, understandable aim for all countries: “zero poverty and zero emissions within a generation”. (Reporting by Laurie Goering; editing by Megan Rowling) More

 

Caribbean “island laboratories” making a case for renewable, says Mazurier

In early March, Stéphane Tromilin, a sustainable energy attaché in the French government, gave a United Nations webinar on the French government’s work on French islands.

In it, he spent most of the time discussing the unique challenges of islands, specifically those in the Caribbean like Guadeloupe, but also noted an island’s value as “laboratories to develop renewable energy solutions.”

Christophe Mazurier, a European financier and climate defender, has seen these laboratories in action, specifically in the Caribbean, where he has a home in the Bahamas. While many of these nations are at greater risk of climate disasters – in the form of devastating hurricanes and other storms – than most other places on earth, many refuse to become victims of the global intransigence on climate change. Instead, many Caribbean nations are taking it upon themselves to be the change they wish to see in their developed-nation counterparts.

Guadeloupe, the overseas French territory mentioned earlier, is getting nearly 30 percent of its energy from solar, a number on par with climate leaders Germany. Aruba gets 20% of its energy from wind, and is aiming to be totally sustainable by 2020. Ten island nations, including the Bahamas, the British Virgin Islands, Grenada, Dominica and more have joined the Ten Island Challenge, launched by Richard Branson as a means to give these Caribbean island clear renewable goals and support them in meeting those goals.

Mazurier says that in many ways, the Caribbean’s move to solar was preordained. Not because they are at the forefront of climate change susceptibility, but because of their incredibly high energy costs. Most Caribbean island nations pay around 33 cents per kWh of energy, while for comparison the United States pays 10 cents per kWh. Even with the price of fuel bottoming out, and energy costs in places like Jamaica being cut in half, Jamaica and others were already well on their way to a renewable future.

In 2013, Jamaica signed a deal that would bring 36 MW of wind power for $63 million, which would help it divest from diesel oil in the long-term. By investing heavily in renewables now, the islands can avoid paying for diesel in the future… No matter how the price fluctuates. Mazurier says that this is the key for these Caribbean island nations, who don’t have multimillion dollar climate budgets. These nations cannot just throw money at the problem in hopes that they can play a role in the ultimate cooling of the climate. Their emissions are negligible in the grand scheme of things. The only aspect that can get these nations to buy in if they know they will ultimately pay less for energy than they do now. The positives for the overall climate and the state of the planet are simply a secondary byproduct of these finance-driven deals.

Whichever way it breaks out, says Mazurier, the Caribbean turn toward renewable energy is a refreshing and encouraging sign. The question now becomes: Can the larger nations take note of their island peers? More

 

 

UNEP Report Proposes Pooling Facilities as Solution to Micro-grid Financing

April 2015: The UN Environment Programme (UNEP) has launched a study on mini-grids that proposes ‘Mini-grid Pooling Facilities (MPFs)’ as a solution to overcoming key investment barriers. Presenting mini-grids as a critical solution for improving energy access globally, the study examines the challenges of associated investment risks and transaction costs, and proposes addressing these through project and capital pooling.

The report, titled ‘Increasing Private Capital Investment into Energy Access: The Case for Mini-grid Pooling Facilities’: provides an overview of mini-grids, including ownership models; identifies and examines two key investment barriers, namely risks to investment in emerging markets and project costs in developing economies; assesses the benefits and drawbacks of project pooling facilities; and explores MPF structures and stakeholders.


On risks, the study notes that mini-grids in emerging markets present a complex risk profile. In addition to discussing perceived risks, such as political or fuel cost volatility, the study examines risks to investment in mini-grids during the development, construction and operation phases, as well as across phases. The study also identifies high transaction costs in developing countries in the areas of project identification, evaluation and diligence, and platform development.


According to some estimates, achieving universal electricity access by 2030 will require mini-grids to serve over 65% of off-grid populations globally. Arguing for the need to develop new financing models to reach such levels of deployment, the report presents MPF as conceptual framework for private-sector financing that pools projects and capital to support the development of mini-grids internationally. According to the study, MPFs can diversify risk and increase capital requirements by strategic selection of projects into portfolios.


The report suggests that MPFs can also help: lower transaction costs through centralizing fixed expenses; decrease technology costs; attract previously unavailable capital; and leverage philanthropic investment, among others. The study stresses the need for developers, investors and researchers to work jointly, conducting proper analyses and determining the appropriate structures for each working context. [UNEP Publications Webpage] [Publication: Increasing Private Capital Investment into Energy Access] More