Blended finance model dec 2015

FINANCING FOR DEVELOPMENT

financing for development course-‐ dec 15 1

SUSTAINABLE DEVELOPMENT: GROWTH WITHIN PLANETARY BOUNDARIES

Many parts of the world have achieved economic growth… but at the cost of environmental balance. With the overuse of fossil fuels as source of energy to create economic progress, the world is now experiencing climate change (heat waves) caused by greenhouse gas, ocean acidificaWon, ozone depleWon, aerosol loading creaWng air polluWon, overuse of fresh water resources and exWncWon of vegetal and animal species Yet we need energy in order to grow world output 3 Wmes to achieve SDGs …but to survive, we need to grow differently COP21 objecWve is to limit global warming to 20C by 2050 This can only be achieve by switching our sources of energy from fossil to renewable


SOLAR POWER •  It is a renewable energy in

the form of solar radiaWon used to produce electricity. It exist in abundance in our environment.

•  It is a clean energy which does not produce CO2 and it lessens our dependence on fossil fuels

•  Its price has been decreasing over the years and it is projected that in 2020 solar power will be as cheap as our current electricity cost


RWANDA’S 1ST UTILITY SOLAR FIELD •  Gigawa_ global has installed the

1st uWlity scale solar field in Rwanda in feb 2015 h_p://cleantechnica.com/2015/02/09/1st-‐uWlity-‐scale-‐solar-‐energy-‐project-‐east-‐africa-‐now-‐online-‐rwandas-‐total-‐grid-‐capacity-‐surges-‐6/)

•  It will boost Rwanda total electricity grid capacity by 6% at a cost of 2.79 c per wa_

•  It will produce 8.5 MW, connecWng 15,000 homes and creaWng 350 local jobs

•  At the same Wme it allows the country to address numerous SDGs targets by using clean energy, promote gender equality via women employment, improve educaWon by allowing night studies using solar lamps…


BLENDED FINANCE MODEL •  The 23.7 millions USD project was

completed in 12 months in a landlocked country!

•  It used “ blended finance” which is a mix of public sector social returns objecWves with private sector financial return objecWves

•  Although the main funder was Africa clean energy finance program via OPIC, a wide range of other actors financed the project

•  The model could be duplicated many Wmes as Gigawa_ global plans to develop 1000 MW solar energy in Africa by 2020

•  Corporates companies like Google are also switching to sustainable energies using financially sustainable models h_p://www.google.rw/green/energy/


Blended finance model dec 2015

Economy & Finance

Transcript of Blended finance model dec 2015