10th EDF ENERGY FACILITY

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10th EDF ENERGY FACILITY
ECOWAS Trade Investment Conference04/06/2009
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Presentation of the 9th EDF Energy Facility
Political context EU Energy Initiative Objective
Contribute to MDGs - poverty reduction through
increased access to modern energy services
Budget 220 M 198M for Call for Proposals 10M
for ACP-EU Partnership on Infrastructure (TA
Power Pools AFUR) 12M are dedicated to
Technical Assistance, Audits, Monitoring and
Evaluation and contingencies
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Presentation of 1st EF CfP results
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Presentation of 1st EF CfP results
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Presentation of 1st EF CfP results

• Supra-regional
• 3 projects

• Caribbean
• 6 projects

• Africa
• 62 projects
• West 22 projects
• South 13 projects
• East 19 projects
• Central 8 projects

• Pacific
• 4 projects

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Presentation of 1st EF CfP results
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Features of the 10th EDF EF

• Policy targeting of the EF II
• The "niche" for the new Facility
• Collaboration with Development Banks
• Supporting the involvement of the private sector
• Possible implementing modalities

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1. Policy targeting of the EF II (1)

• Themes of the future EF
• Balance between poverty/climate priorities
  Improving livelihoods/incomes while helping to
  fight against climate change
• Focus on renewable technologies not exclusive
• Focus on rural and peri-urban areas

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1. Policy targeting of the EF II (2)

• Actors to be involved
• EF open to all kinds of actors
• Compulsory partnership with ACP actors
• Non-ACP IOs not as applicants but only as
  partners, co-donors or associates
• ACP State Actor applicants only for  soft 
• States to be involved for proper reporting and
  accountability

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1. Policy targeting of the EF II (3)

• Technologies
• Focus on renewable energy sources while remaining
  open to other technologies
• Choice of the technologies best adapted evaluated
  against criteria like relevance and
  sustainability in the local context
• Importance of energy efficiency and biomass
  energy for households
• Application of RED requires capacity development
  in the ACP

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2. The "niche" for the new Facility (1)

• Scale and level of the EF intervention
• Amount 200 M
• Particularly relevant for interventions with
  impact at local level
• But should keep a certain degree of flexibility
  to ensure a better coverage of the sector
  (including national level)
• Relevant for governance and capacity development,
  complementary to RIPs and ITF

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2. The "niche" for the new Facility (2)

• Priority eligible actions
• EF particularly well suited for provision of
  decentralised services, with emphasis on
  productive use
• Improvement of governance and capacity
  development
• Technology transfer and the development/disseminat
  ion of appropriate energy technologies
• Rural decentralised electrification, biomass
  energy and biofuels are important areas, together
  with peri-urban areas and slums
• Promotion of private sector investment in service
  provision

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2. The "niche" for the new Facility (3)

• Coherence and complementarity
• EF able to intervene in all ACP countries and
  regions
• Where energy is a focal sector, complementarity
  and coherence with NIP/RIP
• Where not, contribution to NIP focal sectors
  rewarded
• Proven relationship with national policy
  required
• Division of labour between donors should be
  respected to the possible extent and
  collaboration methods established

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3. Collaboration with Development Financing
Institutions

• Collaboration with Development Financing
  Institutions to be developed
• New financial engineering needed in order to (1)
  increase leverage and (2) attract public and
  private investment through blending of funding
  instruments

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4. Supporting the involvement of the private
sector

• Measures to be promoted in the EF
• Reducing macroeconomic, political and legal risks
  by improving governance in the energy sector
• Establishing long-term public-private
  arrangements, like regulated purchase tariffs
• Facilitating capital investment by innovative
  financing arrangements for EF projects, mixing
  loans and subsidies

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5. Possible implementing modalities (1)

• 2 main modalities envisaged
• Call for Proposals for
• Small to medium-size projects aiming at
  increasing access to energy services
• governance and capacity development projects
• Possible funding of larger-size infrastructure
  projects, in collaboration with Development
  Financing Institutions

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5. Possible implementing modalities (2)

• Calls for proposals
• Two steps - Call envisaged
• 2 components
• Increased access to sustainable energy services
  in rural and peri-urban areas
• Improving governance and capacity in the energy
  sector

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ECOWAS Trade Investment Conference The
EU-ACP Energy Facility

• Thank you for your attention
• Pablo Leunda Martiarena
• AIDCO C7 Water and Energy Facility Unit
• pablo.leunda-martiarena_at_ec.europa.eu