The Global Energy Efficiency and Renewable Energy Fund GEEREF Mobilising private sector finance towa

1
The Global Energy Efficiency and Renewable
Energy Fund(GEEREF) Mobilising private sector
finance towards global access to
climate-friendly, affordable and secure energy
services
2
Investment challenge for global energy efficiency
and renewable energy investment

• Risk capital needs in developing countries until
  2010 US 9.7 billion for renewable energy
• Weak domestic public investment into the energy
  sector
• Low Foreign Direct Investment into the energy
  sector
• Low private sector participation in DC energy
  sector
• Limited international public risk capital
  instruments/funds
• ? Create innovative public-private risk capital
  instruments
• ? Increase private sector participation

3
Barriers to private investment

• High upfront cost long lead times few exits
• Limited experience in mainstream finance sector
• Limited financial expertise in developing
  countries
• Net returns below 8 are inadequate to match
  risks
• Small scale projects add to high transaction
  costs
• Conventional public finance instruments not
  always appealing to private sector
• ? Need to bundle expertise and investments

4
The Global Energy Efficiency and Renewable Energy
Fund Joining hands with private finance
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What will GEEREF offer? (contd)Bridging the
Valley of Death
Risk
Profitable- Commercial
Profitable - Non-Commercial Valle
y of Death
Risk-Return Threshold
Non-Profit
X X X
X X
X X
Return
Awareness Capacity Building Feasibility
Demo
Basic Research Grants
Commercial Equity Debt
Soft Loans CDM, etc
Patient Risk Capital
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GEEREF Status Next Steps

• 2004 Feasibility Study completed in November,
  overall design, expressions of interest (EIB, MS,
  private sector)
• 2005 Tender for International Fund Manager,
  contract concluded with Triodos International
  Fund Management and EC in November 2005
• 2006 Impact Assessment and EC Communication
  (583 dd. 6.10.2006) Advisory Board in place.
• Next steps
• Build up funding portfolio (2006-2007)
• Commission Decision for first 15 million (mid
  2007)
• Conclude co-investment arrangements (mid 2007)
• First closing and funds on the ground (2007)

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More Information

• General Policy
• Thomas.Verheye_at_ec.europa.eu
• Interested Co-financing parties
• Bas.rekvelt_at_triodos.nl (Bas Rekvelt at TIFM)
• Paul_at_energyhouse.com (Paul Van Aalst at EC)
• Background
• http//europa.eu.int/comm/environment/jrec/
• (under construction)