Prize for Bank’s pioneering renewables work in Kazakhstan
In the News | Jun 05 2015

Last Saturday, the EBRD won a landmark award for its pioneering work on Kazakhstan’s first wind farm to be financed under a new feed-in-tariff mechanism that the EBRD helped to develop.

“It’s been our honour to receive the AmCham Environmental and Safety Award for the Yereymentau project tonight,” co-OL Xenia Rogan, Principal Banker in Kazakhstan with the Energy, Russia, Caucasus & Central Asia team, reported to colleagues.

Kazakhstan Director Janet Heckman, also at the ceremony at the Rixos Hotel in Almaty along with 280 guests including economy and regional integration ministers, added, “Xeniya and I were really pleased to accept the award.”

“Supporting clean energy projects is at the core of the EBRD’s mandate. We stand ready to assist Kazakhstan in unlocking its potential in renewables by financing pilot projects with strong local and foreign companies,” said Riccardo Puliti, EBRD Managing Director for Energy and Natural Resources, who also signed an agreement to prepare the Yereymentau project for domestic carbon offsets during Kazakh Prime-Minister’s visit to EBRD HQ. The Carbon Agreement should create a supply of carbon credits and support the development of the Kazakh Emission Trading Scheme, which is among the first in Asia and highly relevant in the context of the upcoming Paris Climate Change negotiations later this year.

Managing Director Olivier Descamps congratulated the team, calling the award “a well deserved recognition in this crucial space where the EBRD is leading the way in the country.” He thanked all the staff who, over the years, have made this into a credible and visible topic.

The project is inspirational in its scope and imagination. The EBRD and the Clean Technology Fund (CTF) have financed the construction, connection to the power transmission grid, commissioning and launch of a greenfield 50 MW wind power plant at Yereymentau in central Kazakhstan.

The EBRD has provided a KZT 14 billion (€70 million) loan to Wind Power Yereymentau, a special purpose vehicle incorporated in Kazakhstan, while up to €18 million of concessional financing comes from the CTF. The loan is guaranteed by JSC Samruk-Energo, the ultimate owner of the company.

Yereymentau Wind Park will be the first power sector project in Kazakhstan to receive CTF funding.

The wind power plant is expected to offset 120,000 tons of CO2 per annum, an equivalent of 450 return flights from Astana to Almaty, in a country still dominated by coal-fired power generation.

Most of the electricity - over 70 per cent - produced in Kazakhstan today is still generated by coal-fired power plants benefiting from easily accessible local coal reservoirs.
However, Kazakhstan is seen as one of the most promising countries in the CIS for both wind and photovoltaic energy investments. About 50 per cent of Kazakhstan’s territory has an estimated average wind speed of about 4-5 m/s with overall wind potential estimated at around 18,000 GWh per year. Until now, renewable energy in Kazakhstan has mainly been represented by a few hydropower plants mostly built in Soviet times.

The EBRD support for the Yereymentau wind project is the result of successful cooperation with the government of Kazakhstan on creating the legal and regulatory frameworks for renewable energy. The Renewable Energy Law was introduced in June 2013, with tariffs for renewable energy off-take agreed in 2014.

This first wind farm in the country will road-test the new regulations and will set the benchmark in terms of developing, building and operating a greenfield renewable project.
Nigel Jollands, Senior Policy Manager, Energy Efficiency and Climate Change, commented that Saturday’s prize recognised “such an important first project in this crucial sector. I hope our work will lead to many more such investments.”

IDB to support energy efficiency financing through the issuance of Green Bonds in Mexico
In the News | May 20 2015

Estimates by Mexico´s National Program for Sustainable Energy Use (PRONASE), predict potential savings in final energy consumption resulting from the implementation of energy efficiency mechanisms ranging from 34,800 to 40,500 GWh by the year 2025. Despite the important role played by ESCOs in the energy efficiency market in Mexico, the funding sources they have been able to tap for such projects are usually limited, expensive, and have very short terms, which at times makes financing unfeasible.

E-trike auction attracts five potential suppliers
In the News | May 15 2015

THE SECOND auction for the contract to supply electric tricycles (e-trikes) has drawn proposals from five companies, the Department of Energy said. The department yesterday opened the bid submissions to supply the first 3,000 units of e-trikes under a project that aims to replace some 100,000 gasoline-powered tricycles by 2017. The companies that submitted proposals were Japan’s Uzushio Electric Co.; China’s Mulan Electric Vehicle Co. Ltd.; Taiwan’s TECO Electric & Machinery Co. Ltd.; local firm CAMEC JCB Corp.; and the joint venture of Invenic, Inc. and China’s Jiang Siu Hansen Motor Co. Ltd.

Podcast: Lighting Up Thailand
Reclassify | Mar 25 2015

One of the winners of 2014’s UN Momentum for Change awards, Wandee Khunchornyakong, has been transforming Thailand’s renewable energy capacity with utility-scale solar farms. Listen here. 

EBRD supports Turkey’s shift to renewable energy
In the News | Feb 17 2015

Turkey has taken an important step towards reaching its 2023 renewable energy targets thanks to support from the European Bank for Reconstruction and Development (EBRD). In a move to grow the share of renewables in the country’s energy mix, increase security of energy supply and reduce greenhouse gas emissions, the Turkish Ministry of Energy and Natural Resources has developed – with the support of the EBRD – Turkey’s first National Renewable Energy Action Plan in line with the EU’s Renewable Energy Directive.

Ukraine, World Bank sign credit agreement worth $378.4 mln to upgrade power grid
In the News | Feb 10 2015

Ukraine and the World Bank have signed a credit agreement worth $378.425 million to implement the Second Power Transmission Project. An Interfax-Ukraine correspondent has reported that the document was signed by Energy and Coal Industry Minister of Ukraine Volodymyr Demchyshyn and World Bank Country Director for Belarus, Moldova, and Ukraine Qimiao Fan on Tuesday. The loan includes $330 million from the World Bank and $48.425 million from the Clean Technology Fund (CTF).

ADB loans $85m to Thai wind project
In the News | Jan 26 2015

The Chaiyaphum project is being developed in the north east of the country by a special-purpose joint venture, 90% owned by Thai independent power producer Electricity Generating Public Company (EGCO), and 10% by German renewables developer Pro Ventum. ADB will provide a local currency loan of up to THB 1,807 million ($55 million) and $30 million from the ADB-administered Clean Technology Fund.


EBRD,Kazakhstan to modernise municipal infrastructure in main city
In the News | Jan 05 2015

The European Bank for Reconstruction and Development (EBRD) is launching an integrated approach to modernize municipal infrastructure facilities in Kyzylorda, the capital of the Kyzylorda region in southern Kazakhstan.

Several financing agreements, worth over US$ 70 million in total, were signed at the Bank’s Headquarters in London by EBRD President, Sir Suma Chakrabarti, and the Akim of Kyzylorda Oblast, Krymbek Kusherbayev, on December 18 .

The Bank reported that the funds will be used to finance improvements in water and wastewater, heating, electricity and street lighting.

Chakrabarti said at the signing: “We are proud of our cooperation with the authorities of Kyzylorda Oblast and that our Enhanced Partnership Framework Arrangement with the government of Kazakhstan enables us to scale up our work to improve lives in Kazakhstan, including in Kyzylorda. During my last visit to Kyzylorda, I was impressed by the regional authorities’ work on progressing the modernisation agenda, and I am glad that the Bank is signing these projects today.”

Kusherbayev , in turn, said: “We are very pleased with the high level of cooperation with the EBRD. We hope the Kyzylorda region will take a central place in the Bank’s activities in Kazakhstan.”

The EBRD will provide financing to three municipal companies in the city of Kyzylorda.
Up to US$ 10 million will be lent to Kyzylorda Su Zhuyesi, a municipal water management company, to rehabilitate and upgrade its infrastructure network. The project will result in better water and wastewater services, greater energy and water efficiency, reduced losses and improved environmental standards.

In addition, up to US$ 24 million, comprising an EBRD tranche of up to US$ 18.5 million and a tranche of up to US$ 5.5 million from the Clean Technology Fund, will be lent to Kyzylordateploelektrocentr, a municipal district heating and electricity production company. The financing will not only help to modernise the district heating network and production facilities, but will also introduce individual building-level heating substations to improve energy efficiency, cut losses and reduce CO2 emissions.

Lastly, up to KZT 4.5 billion (US$ 24.7 million equivalent) will be lent to the Kyzylorda Regional Electricity Company, a power utility company responsible for distributing electricity to the entire Kyzylorda region. Funds will be used to modernise the electricity distribution network, including installing modern metering and automated control systems, and upgrading electricity transformers and distribution lines. The project is expected to cut annual electricity losses by 30 million kWh, which is the equivalent of 30,000 tonnes of CO2 emissions.

The Bank is also considering lending up to KZT 2.3 billion (US$ 12.5 million equivalent) for modern, energy efficient street lighting in the city of Kyzylorda. The EBRD has already signed a pre-financing agreement with the oblast and city authorities to start preparing the project.

This wide-ranging modernization programme in Kyzylorda is also supported by the government of Kazakhstan, which is providing a grant of up to KZT 3.9 billion (US$ 21.7 million equivalent) to co-finance water and district heating modernisation projects. This support comes as part of the Enhanced Partnership Framework Arrangement, which was signed between the Bank and the government of Kazakhstan in May this year.

To date, the EBRD has invested over US$ 6.7 billion in Kazakhstan’s economy.

Originally published here

Sky Solar Announces Project Financing Packages
In the News | Dec 22 2014

The Board of Directors of the IDB approved a financing package for the Arica 1 plant that consists of (i) a loan to Sky Solar's subsidiary, Arica Solar Generación 1, Ltda., of US$27.7 million from the ordinary capital of the IDB (the "IDB Loan"), (ii) a loan of up to half the amount of the IDB Loan, or US$13.9 million, from the China Fund for Latin America and the Caribbean (the "China Fund"), and (iii) a loan of US$8.5 million from the Clean Technology Fund (the "CTF"). The final commercial terms for the loans have not yet been decided. 

Nepali company seeks to develop hydroelectric generation facilities greater than 25 MW
In the News | Dec 19 2014

On Dec. 17, Hydroelectricity Development & Investment Co. Ltd. (HIDCL) announced it is seeking to lead development of hydroelectric projects in Nepal that have a generating capacity greater than 25 MW. HIDCL is based in Babarmahal, Kathmandu, Nepal. Scaling-Up Renewable Energy Program (SREP) formally registered HIDCL in July 2011, as one of several Nepali organizations approved to receive its investment funds for use to develop hydroelectric generation facilities. According to SREP, state-owned HIDCL has an authorized capital of US$790 million, and existing capital of US$63.2 million. HIDCL said it is authorized to invest US$158 million in hydropower projects above 25 MW.