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Concessional Loans

A subsidized loan in which a public entity, development bank, green bank or philanthropy buys down the cost of the loan to make it more affordable. This could include an interest-rate buy down or allowing for a loan tenor that is longer than what you could typically get in the market.

Tenders and Reverse Auctions

Under a tender or reverse auction program, a government or utility designs a process to select bids and procure electricity to meet specified capacity goals. Effectively designed auction approaches can lower costs through encouraging competition among developers and electricity suppliers (Couture et al. 2015) and are often most effective for utility-scale projects given the costs of administering such programs (Bird et al. 2012, UNFCCC 2015). Many countries have adopted reverse auction approaches for electricity procurement, with project developers submitting bids to develop a project during a specific period (Miller et al. 2013; UNFCCC 2015). Tenders and reverse auctions allow prices to be set through a competitive bidding process, providing an approach to establish long-term fixed price contracts for electricity procurement (Couture et al. 2015). In some cases, auctions include specific project requirements in terms of size, technology, application and may also include other considerations for project selection (e.g., water use, GHG emissions, job impacts, etc.).

In some countries, auctions are being combined, or used in parallel, with FITs in policy hybrids, whereby FITs are used for smaller-scale projects and auctions are used for larger-scale procurement.

Energy Efficiency: The First Fuel for the EU Economy

This report is the final delivery of the Energy Efficiency Financial Institution Group (EEFIG). It summarizes the group’s work and thinking over between October 2013 and February 2015. During this time, EEFIG met nearly every month and addressed energy efficiency investments, their drivers and trends, for buildings, industry and small and medium size enterprises (SMEs) in the European Union (EU).

Clean Energy Ministerial 6 (CEM6): Finance for Energy Access

The public-private roundtable summarized on this web page describes how over one billion people globally lack access to electricity, and how providing clean and affordable energy services to these unelectrified populations will be a critical driver for poverty reduction, job creation, and improved health and social outcomes. According to the authors, achieving universal energy access within the next two decades will require an unprecedented level of public and private sector investment, with over 60 per cent of these investments directed towards distributed generation solutions

Solar PV in the Caribbean: Opportunities and Challenges

This training material describes how solar photovoltaic (PV) development is occurring in many jurisdictions in the Caribbean despite the lack of data on the solar energy market. It shares key findings and analyses on PV development in the Caribbean, providing a summary of installed cost data, an overview of module pricing and equipment brands, a summary of customer financing and a snapshot of policies for distributed generation.

Scaling Up Renewable Energy Program: Mali Investment Plan

This document summarizes Mali's plan to invest in renewable energy—primarily solar, hydropower and biomass—to provide electrification to rural areas. It analyzes the country's energy sector and potential, as well as the plan's institutional framework, financing, implementation, and monitoring and evaluation.

Solving India’s Renewable Financing Challenge: Which Policies can be Most Effective?

This paper provides a framework for comparing the existing federal policies for onshore wind and solar photovoltaic (PV) technologies in India with a proposed class of debt-related federal policies, using project-level cash-flow models. Three debt-related subsidies were considered: extended-tenor debt, reduced cost debt, and interest subsidy. According to the report, reduced cost, extended-tenor debt is more cost-effective than the primary existing policies at current support levels.

Investing in Residential Energy Efficiency Programs in Mexico

This report reviews Mexico's launch of an energy efficiency strategy that targets power consumption in the residential sector by increasing the efficiency of household lighting and appliances. Large‐scale lighting substitution and appliance replacement programs could reduce the residential electricity sector’s carbon footprint by over 10 per cent in the next few years.

Renewable Energy Training Program Module 5: Financing Renewable Energy

The Energy Sector Management Assistance Program (ESMAP), in collaboration with the Advisory Services of the International Finance Corporation (IFC), carried out a comprehensive training program on renewable energy for World Bank Group staff in 2012. This module introduces renewable energy finance, including public and private funding tools, financing in developing countries, the role of credit rating agencies and the financing of public-private partnerships.