Self-supply Renewable Energy and Energy Efficiency
Surfacing investments to reduce costs and lower GHG emissions
Amid increasing demand for energy in the region, energy efficiency has huge potential if investments increase. Yet even for large companies, the high costs of project identification, high-risk premiums and often inadequate financing options are well known barriers.
The IDB partners with donors, such as the Nordic Development Fund and Climate Investment Funds, to provide companies with three financial tools to overcome these barriers and invest in energy efficiency and self-supply renewable energy projects:
- Energy Assessments (technical assistance)
The IDB provides Energy Assessments and Investment-grade Engineering Feasibility Studies for energy efficiency and small-scale renewable energy projects, green building design and LEED certification.
- Energy Efficiency Finance Facility (loans and technical assistance)
The $50 million Facility focuses on small projects with potential for high financial returns, including increasingly economical technologies such as smart-grid, advanced lighting and solar or biomass power.
- NDF Guarantee Fund (risk sharing)
The $10 million fund provides up to 25% guarantees to IDB loans from the Energy Efficiency Finance Facility of up to $5 million. These guarantees will enhance the credit profile and reduce the price of loans as necessary to make projects viable. Eligible countries: Central America, Colombia, Dominican Republic, Jamaica and Bolivia.