© European Bank for Reconstruction and Development 2011 | www.ebrd.com

EBRD Financing for Sustainable EBRD Financing for Sustainable

Energy InvestmentsEnergy Investments

Remon ZakariaBusiness Development Manager

Energy Efficiency and Climate Change

European Bank for Reconstruction and Development (EBRD)

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EBRD’s SEI Investments:Sectoral and Regional Distribution

Launched in 2006 to mainstream renewable energy and energy efficiency in EBRD’s operations. Its achievements from 2006 to 2012 were:

- €11.1 billion invested, for total project value of €61 billion in 602 projects in 31 countries;

- Annual savings of 55 million tonnes CO2-eq per year (~ 14% of CA emissions) and 49.5

million toe per year (~ 35 % of CA primary energy production)

Central Asia, €119 , 5% Central Europe

and Baltics, €291 , 13%

Eastern Europe and Caucasus, €

407 , 18%

Regional, € 156 , 7%

Russia, € 337 , 15%

South-Eastern Europe, € 535 ,

23%

Turkey, € 443 , 19%

EBRD SEI 2012 ABV (EUR 2.3 billion) Geographical distribution

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SEI Operational StrategyA Successful Holistic Approach

Working with

governments to support

development of strong

institutional and

regulatory frameworks

that incentivise

sustainable energy

Working with

governments to support

development of strong

institutional and

regulatory frameworks

that incentivise

sustainable energyTechnical assistance

to overcome barriers:

market analysis, energy

audits, training,

awareness raising; grant

co-financing to provide

appropriate incentives

and address affordability

constraints

Technical assistance

to overcome barriers:

market analysis, energy

audits, training,

awareness raising; grant

co-financing to provide

appropriate incentives

and address affordability

constraints

Projects with numerous

clients, public and private,

with a range of financing

instruments

Projects with numerous

clients, public and private,

with a range of financing

instruments

Via these three

parallel activities SEI

accounted for 26%

of EBRD’s Annual

Business Volume

in 2012

Via these three

parallel activities SEI

accounted for 26%

of EBRD’s Annual

Business Volume

in 2012

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Financing Sustainable Energy Investments

Direct EBRD lending to Corporate and Municipal Clients

Sustainable Energy Financing Facilities: On-lending through Partner Financial Institutions

Co-Financing with the private financial sector, public sources such as multilateral donor funds and other IFIs

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Direct EBRD Lending to Corporate Clients: what do we do?

Assist Industrial, Commercial and Agribusiness (ICA) Clients with identification of investment opportunities identification of investment opportunities related to sustainable energy and resource efficiency (REI) including in the built environment

Provide technical assistance technical assistance including:

Energy and water audits, feasibility studies, technical assessments, cost-benefit analysis of Energy Efficiency (EE) measures and specific REI opportunities;

Review of technical design and procurement documentation;

Corporate policies support, capacity building on specific aspects (e.g. ISO 50001 Energy Management);

International Sustainability Certification;

Comparison with national and international energy and water benchmarks;

Assessment of market penetration rates of specific advanced technologies;

Lender supervision assistance;

Investment incentives under the Energy Efficiency Management System Program

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Sustainable Energy Financing Facilities (SEFFs)Structure SEFFs are effective in reaching a wide range of industrial and residential clients

SEFFs are effective in supporting commercial banks in providing finance in new areas such as residential energy efficiency and small scale renewables

Verification Consultant

Commercial banks

Sub-borrowers

EBRD

Project Consultant

Donor-funded contract Donor-funded contract

Credit line Grant incentives

Grant incentivesSub-loans

Technical support(project assessment)

Technical support(project verification)

Support

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Case StudyCase Study

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KyrSEFF – EU funded project planned to be launched in Q2 2013

USD 20 M facility, approved in December 2012 by the EBRD Board;

Dedicated EE credit line promoting improvements in private housing sector as well as SME/industries/renewables with max sub-loan size up to USD 1.0 M;

Eligible are individual home owners/associations/private HMCs, housing cooperatives, ESCO and service providers refurbishing the premises on behalf of the residents;

The project combined Policy dialogue, Technical Assistance, Financing and grant support;

Incentives Incentives between 10 to 30% 10 to 30% from the principal sub-loan amount specifically for energy efficiency projects including technologies with performance indicators exceeding the level of national regulation and depending on complexity of the projects.

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Remon ZakariaRemon Zakaria

Business Development Manager, Business Development Manager,

Energy Efficiency and Climate ChangeEnergy Efficiency and Climate Change

zakariar@ebrd.com

For more information contact:For more information contact:

Aleksandar Hadzhiivanov Aleksandar Hadzhiivanov

PrincipalPrincipal Manager Manager

Energy Efficiency & Climate ChangeEnergy Efficiency & Climate Change

hadzhiia@ebrd.com