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SEMED Private Renewable Energy Framework

Location:

Regional

Project number:

46907

Business sector:

Energy

Notice type:

Private

Approval date:

14 Oct 2015

Status:

Approved

PSD disclosed:

17 Oct 2014

Sub-projects signed under this framework

Project Description

The EBRD is considering providing up to USD 250 million to finance private developers of renewable energy generation projects in Morocco, Tunisia, Egypt and Jordan through the SEMed Private Renewable Energy Framework (SPREF). The goal of SPREF is to break down barriers preventing the development of the private renewable energy markets in SEMed and the exploitation of the region's outstanding renewable resources. Successful implementation of an investment model involving the private sector in renewable energy needs to include:
 
                (i)  the establishment of the necessary legal and regulatory framework, and
                (ii) the financing, construction and operation of projects using that model.
 
This is necessarily an iterative process where incremental improvements in the legal and regulatory framework are validated and built upon by new investments, which in turn builds momentum for further legal and regulatory reforms. Under the SPREF the EBRD will combine policy dialogue to help establish the necessary regulatory framework with finance to demonstrate the success of the initial projects under these new private models.
 
In addition to the reduction of greenhouse gas emissions, SPREF will accelerate the development of the private renewable markets in SEMed in order to face the increasing electricity demand in these countries.
 
SPREF is expected to finance mainly wind and solar technologies but other renewable energy technologies may be considered.
 
The Clean Technology Fund (CTF) has committed USD 35 million (CTF Project ID: PCTFDP606A) and the Global Environment Facility (GEF) has committed USD 15 million (GEF Project ID 5143) in concessional co-finance to support EBRD SPREF investments.

Transition Impact

The Project will assist the four countries of the SEMED (Morocco, Tunisia, Egypt & Jordan) in breaking down the hurdles hampering the development of a private renewable energy sector.

Each sub-project under SPREF will have its own transition impact analysis and will be rated separately. Transition impact may be achieved as follows:

  • More widespread private ownership
    The investments made under SPREF will increase the number of private investors and the size of their investments in the SEMED renewable energy markets.
     
  • Improvements to the legal and regulatory frameworks to support private renewable energy projects in SEMED
    One of the most important market barriers to more private sector involvement in renewable energy is the establishment of the necessary legal and regulatory framework.

SPREF will launch its policy dialogue activities with a gap analysis of the current legal and regulatory frameworks for private renewable energy projects in the four SEMED countries. This study will guide the advice EBRD will provide to governments and other stakeholders and will provide direction for further targeted policy dialogue work in each country. In order to bring about the expansion of private sector involvement in renewables envisioned by SPREF, improvement to the institutions, laws and policies will be important.

The Client

Sub-project clients are expected to include a wide range of international and local energy companies and other developers.

EBRD Finance

The EBRD will provide up to USD 250 million senior secured debt financing and could also consider equity and quasi-equity investments on a case-by-case basis.

Project Cost

Approximately USD 900 million.

Environmental Impact

The Framework itself will not be subject to environmental and social categorisation and each sub-project, including potentially both Category A & B projects, will be reviewed individually and be subject to normal due diligence and disclosure requirements.

Technical Cooperation

Technical cooperation (TC) funds will be sought for policy dialogue and project preparation. The policy dialogue work will commence with a gap analysis of the legal and regulatory frameworks in each country and the improvements needed for success of private sector renewable energy projects. The initial study will be followed by TCs targeted to the needs of each country. The project preparation TCs will finance the technical, environmental and legal due diligence for the preparation of the sub-projects.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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