In most of the EBRD’s region, renewable energy still accounts for a relatively small share in the energy mix. To support the uptake of renewable energy projects, the EBRD provides project finance and technical assistance, it engages in policy dialogue with energy market stakeholders, and it supports governments in developing favourable regulatory frameworks.
Renewable energy investments have lagged behind due to relatively high investment costs per kW installed, low energy tariffs prevailing in many countries, and weak institutional capacity and regulatory frameworks. In response to this, the EBRD has increased its finance for wind projects, hydro power plants, biomass and solar projects. This has contributed to a reduction of CO2 emissions in many of the region’s power systems.
The EBRD has also financed network extensions and upgrade or modernisation projects which will facilitate the integration of renewable energy sources into these systems. Through increased zero carbon renewable capacity, coupled with the introduction of smart grid operations to enable higher shares of renewable power generation, the power sector in the countries where the EBRD invests is becoming more reliable, efficient and sustainable.
In policy dialogue the EBRD works with governments and regulators to help establish or develop the policy and regulatory frameworks required to support renewable energy, by assisting in their development and implementation. The EBRD has also supported the analysis and preparation of strategic environmental plans to enable environmental standards to be set and the cumulative impacts of projects better understood and assessed.
To incentivise investments in renewable energy, the EBRD supports eligible clients in obtaining finance and technical support through bilateral and multilateral donor finance, such as the Climate Investment Funds (CIFs) or the Global Environment Facility (the GEF).