georgios pantoulis, european commission
TRANSCRIPT
EU Development Co-operation three priority areas:
� Build on strong political ownership for policy reforms needed to attract investments
� Increase the partner countries’ capacity
� Stimulate investments increasing access to energy with innovative co-financing schemes
EU Development Co-operation three main tools:
� Joint Declarations on Enhanced Energy Co-operation;
� EU Technical Assistance Facility (TAF) for the Sustainable Energy for All (SE4All) initiative;
� Blending Facilities including the innovative Electrification Financing Initiative – ElectriFI
Joint Declarations on enhanced energy cooperation
o thirteen Joint Declarations signed
omore Joint Declarations with African States and EU Member States, to be co-signed at the highest level during COP21
EU Technical Assistance Facility (TAF) for the SE4All initiative
� EU TAF operational for almost two years
� Covers all regions/partner countries
� Provided in response to country requests and
� Coordinated, at country level, by EU Delegations
• EUR 600 million mobilised in 2012-2013
• EUR 3.5 billion allocated for 2014-2020
• Significant leveraging investments and fostering end-users' access to a range of energy services for household, community and productive uses – a "total energy access" approach.
More than EUR 4 billion for the fight against energy poverty so far
Electrification Financing Initiative ElectriFI objectives:
� intensive mobilisation of private sector investments in increasing and/or improving access to sustainable electricity and energy services,
� encourage actions with emphasis on decentralised sustainable energy solutions for populations living principally in rural areas or underserved areas / unreliable supply areas, and
� attract additional financing
ElectriFI Support: Early Stage Development Capital (illustrative)
Convertible Grant
Subordinated Debt
Contingent Subordinated Debt
YEAR2 4 6 8 100
€
Pilot / Growth phasePipeline
enhancementPipeline boosting
Scaling-up
Cash flow for senior debt service
O&M costs
Cash flow for subordinated debt service and dividends
EC
The ElectriFI
managerT.A. Unit
Investment Committee
The Promoting Party
The Promoter
The ElectriFI manager will:
process applications;
register clients;
conduct due diligence;
support investment committee meetings;
draft contractual documents;
monitor implementation of conditions and
repayment, etc.
The TA-Unit will provide technical assistance to
the beneficiaries (developers) at all stages:
1) identification stage,
2) project proposal stage and
3) implementation stages
EC
The ElectriFI
managerT.A. Unit
Investment Committee
The Promoting Party
The Promoter
The Promoter is any developer, private or state
owned, who applies for ElectriFI support,
either on their own or via a Promoting Party. It
is the entity implementing the project and
being the beneficiary of ElectriFI funding.
The Promoting Party is any of the seven-pillar
assessed Financial Institutions, any seven-pillar
assessed member of EDFIs or any seven-pillar
assessed European Development Agency that
‘promote’ a certain transaction for ElectriFI
Step 1
Proposal submission by the
Promoter or the Promoting
Party to the ElectriFI Manager
Step 2
High-level early screening by
Investment Committee to
ensure that an application fits
the scheme and meets
development objectives
Step 3a
Mature proposals in terms of
bankability and those
submitted by a Promoter Party
will be submitted to the
ElectriFI Investment Committee
for approval
Step 3b
Selected proposals in need of
further technical assistance will
be granted due support in
order to become bankable prior
to their submission to the
ElectriFI Investment Committee
The
procedure
Challenges to be tackled
Overcome main "obstacles" for investments:o Lack of equity
o Lack of skilled developers
o Lack of scale to cover transaction cost
o Lack of affordable long term debt
o Lack of interaction between CSOs and private investors
Market imperfections to be addressed by ElectriFI:� Increase in risk capital to substitute for the lack of equity
� Increase long term debt availability
� Increase project scaling up possibilities
� Increase number of projects reaching financial close through structuring / arranging / advising
� Address affordability and social impact through partnership with CSOs