Getting access to finance for renewable energy projects
January 26, 2018
The International Renewable Energy Agency (IRENA), in partnership with the Abu Dhabi Fund for Development (ADFD), is welcoming applications for renewable energy projects in developing countries. Within the framework of the ADFD-funded USD 350 million IRENA/ADFD Project Facility, the current funding round of USD 50 million in concessional loans marks the sixth of seven annual cycles.
Since the announcement in 2014 of the first funding cycle of the IRENA/ADFD Project Facility, this unique partnership has continued to support replicable, scalable and economically feasible renewable energy projects in developing countries. This new funding cycle provides greater opportunity for developing countries to access low-cost capital for renewable energy projects to drive the energy transformation and achieve sustainable development.
Funding from ADFD, provided through the IRENA/ADFD Project Facility, offers sustainable and affordable energy to millions of people with limited or no access to electricity. In the first four cycles, the Facility allocated USD 189 million to 19 renewable energy ventures across the globe, covering up to 50% of the project costs. The loan approval process saw ADFD and IRENA conduct a thorough assessment of entries in close collaboration to select projects that best fulfilled the eligibility criteria.
Applications for the sixth cycle will be accepted until February 15, 2018 1(7:00 GST).
IRENA/ADFD funding offer
Loans obtained through the IRENA/ADFD Project Facility must be used for activities and assets directly related to the proposed project (i.e. renewable energy infrastructure). Loans cannot be used to fund any pre-development activities, such as feasibility, environmental impact or socio-economic impact studies.
ADFD provides sovereign funding to projects in developing countries in the form of concessionary loans to support national priorities and assist in achieving sustainable economic development.
See ADFD requirements for further details.
Co-Funding
The ADFD sovereign loans cover up to 50% of the project costs, with the remainder needing co-financing. Co-financing can come from any sources, including government, development funds and the private sector. IRENA can share received project proposals with other funds for co-financing, if requested.
Applicants can also register on the Sustainable Energy Marketplace to explore co-financing opportunities.
Eligibility
Those eligible for financing are IRENA members, statute signatories, or states-in-accession that are developing countries on the OECD’s “DAC List of ODA Recipients”. Preference will be given to IRENA member countries. Download the eligible country list.
Renewable energy technology
- Projects should deploy renewable energy as defined in the IRENA statute: bioenergy, geothermal energy, hydropower, ocean energy, solar energy, and/or wind energy.
Project stage
- Projects must be beyond the feasibility study stage and pre-implementation stage, but prior to tendering, procurement and execution at point of selection.
- Projects must provide a full feasibility study including an economic analysis at the Full Project Proposal stage.
Government support
- Applications can be submitted by governmental, semi-governmental, private or non-governmental entities, but must have the support of, and must be prioritised by, the government of the country where the project is to be implemented.
You can download the guidelines for applicants HERE.
For more information, please visit www.irena.org/adfd
Source: http://www.leds-eep.org/news-article.php?id=88
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