Financing green electrification
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Ana Pueyo, IDS COP-21- Scaling-up investment in clean energy in developing countries 9 th December 2015 Financing green electrification
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Transcript of Financing green electrification
Ana Pueyo, IDSCOP-21- Scaling-up investment in clean energy in developing
countries9th December 2015
Financing green electrification
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There is a momentum for change
3 /17
Who provides international finance for electrification?
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0
15000
30000
45000
60000
75000
Aid Private
Aid and private finance for electrification (US$Billion) 1990–2010
Source: Aiddata and WB PPI
4 /17
Who provides foreign aid for electrification?Top six donors: contributions to electrification 1990–2010 (US$Billion)
5 /17
Who receives foreign finance for electrification?
Electrification aid by recipient 1990–2010 Private finance by recipient 1990–2012
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How much for renewables?
Aid per generation source (US$ Billion)
Private investment per generation source (US$b)
1990-1993 1994-1997 1998-2001 2002-2005 2006-20100
40
80
120
160
200
240
Non-renewable Renewable Both
Billions
1990-1993 1994-1997 1998-2001 2002-2005 2006-20100
4
8
12
16
20
24
28
32
Non-renewable Renewable N/A
Billion
7 /17
Profitability
Humanitarian
Governance
Governance
Humanitarian
Profitability
PRIVATE SECTOR
INTERNATIONAL AID
• Large income per capita• High energy prices• Large energy resources• Good country governance• Power sector reform: unbundling and
privatisation• Negative African bias
• Good country governance• Initial stages of power sector
reform• Fast economic growth
What has driven the allocation of aid and private investment?
8 /17
What is needed NOW to unlock finance for green electrification? :
Green Growth Diagnostics for Africa
Identification of the most
binding constraints
Political economy analysis
GCEM
Power Systems
Reliability Analysis
9 /17
What is holding back RE investment in Ghana?
High cost of finance Unattractive investments compared to alternatives
Low access to
international finance
Low access to local finance
Low domestic savings
Poor intermediation
Returns too low
Risks too high
Power sector regulatory risk
Creditworthiness of the off-
takerMacroeconomi
c risk
10 /17
Thank [email protected]
Green Growth Diagnostics for Africa
www.ids.ac.uk/project/green-growth-diagnostics-for-africa
Pro-poor access to electricity
www.ids.ac.uk/idsresearch/pro-poor-electricity-provision-programme
