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EBRD participates in international conference on renewables
Focus on prospects for sustainable energy in EBRD region
The EBRD contributes to sustainable energy by investing in renewables and
energy efficiency, as well as working with governments to encourage
sustainable energy approaches, the EBRD will tell the International Conference
for Renewable Energies in Bonn, 1-4 June. The EBRD will discuss progress and
ways to promote renewable energy in the 27 countries where it operates, from
central Europe to central Asia.
The Bank has promoted the use of renewables in many ways, said Peter Reiniger,
Business Group Director for Energy, who leads the EBRD delegation to the
conference. A loan to Mutnovsky Geothermal Power Plant in the Kamchatka region
of Russia was the Bank’s first investment in geothermal energy. The EBRD has
provided financing to upgrade seven existing hydro power stations, in Albania,
Azerbaijan, Georgia, Latvia and Slovenia, making the soviet-era dams safe and
more efficient as well as pre-empting the need to turn to hydrocarbon sources
for power.
Mr Reiniger noted that the case for renewables is particularly challenging in
the formerly planned economies which are relatively well endowed with
traditional energy resources, and generally have low tariffs for energy that
do not reflect costs of production.
In support of renewables, the EBRD facilitates the sale of reductions in
greenhouse gas emissions, known as carbon credits, and uses the proceeds to
finance sustainable energy projects. Under an agreement signed in 2003, the
EBRD purchases the credits in countries of operations on behalf of the
Netherlands. This initiative may soon be expanded to other countries.
The Bank has invited comment and proposals on a proposed Renewable Energy
Financing Entity to invest in small and medium projects, which it plans to
launch in the autumn. A line of credit that allows Bulgarian banks to on-lend
for renewable energy and energy efficiency projects has already had strong
uptake. A renewable energy fund for Armenia is being prepared with funding
from the International Development Agency, the Global Environment Facility and
other donors.
Mr. Reiniger noted that, beyond its investment and private-sector role, the
EBRD has worked with governments of the region to restructure tariffs in order
to reflect real costs to allow for investment in safe, sustainable energy for
the future. Equally, regulatory frameworks need to be adapted to encourage
investment in renewable energy. The EBRD also helps mobilise donor assistance
for viable projects that need added financial or technical support in today’s
still difficult environment for renewables.
He said that even before renewables started to become feasible, the EBRD
focused on more efficient use of energy resources, by investing to improve
efficiency in the public sector, such as district heating and public
transport; as well as financing energy improvements in industry.
Private-sector investment includes financing for new generators or more
efficient industrial furnaces, as well as adding an energy efficiency
component to loans for other business purposes. All EBRD projects are now
assessed for energy-savings potential.
Part of the EBRD’s focus on sustainable energy development, said Mr. Reiniger,
is ensuring safety. Nuclear safety grant funds, managed by EBRD on behalf of
donor governments, make a substantial contribution to sustainable energy
development. Besides improvements in nuclear safety, decommissioning of
nuclear units and environmental rehabilitation of nuclear sites, the funds
provide grant co-financing for energy efficiency, environmental emission
controls and a measures to limit demand. Donor governments and the European
Community have pledged close to €2 billion to these funds.
The EBRD will participate in the main sessions of the Renewables Conference,
as well as side events on financing renewables and meetings with NGOs.
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