EBRD – Financing Clean Energy

Transition

21 September 2019

European Bank for Reconstruction and

Development

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• International financial institution,

promoting open and sustainable

market economies by investing

mainly in private sector

development and

entrepreneurship

• Owned by 67 countries and two

intergovernmental institutions

• Largest single investor in the

region of operations (38 countries

from central Europe to central

Asia and the southern and eastern

Mediterranean)

EBRD at a glance

• Established in 1991

• 43 resident offices, 6 regional offices, HQ in London

• AAA-rated (S&P, Moody’s, Fitch)

• Capital base of EUR 30 billion

• EUR 130 billion invested in more than 5,300 projects since 1991

1. Data at end December 2017

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Where EBRD invest

Activities

Project finance

Loans

• Loans are tailored to meet the particular

requirements of a project. The credit risk

may be taken entirely by the EBRD or partly

syndicated to the market.

Equity investments

• These may be undertaken in a variety

of forms.

When the EBRD takes an equity stake, it

expects an appropriate return on its

investment and will only take a minority

position.

Guarantees

• We also provide guarantees to help

borrowers gain access to financing through

our Trade Facilitation Programme.

SME finance

• through financial institutions and risk-

sharing facilities, and we finance small

businesses directly

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Other ways to work with us

Advisory services for businesses

• In addition to finance, the EBRD provides

business advice to small and medium-sized

businesses.

Procurement opportunities

• The EBRD provides many opportunities

for suppliers, contractors and consultants

worldwide.

Trade Facilitation Programme

• The programme aims to promote foreign

trade to, from and amongst the EBRD

countries of operations and offers a range

of products to facilitate this trade.

Projects in all key business sectors

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Telecomms, Informatics & Media

Property &Tourism

Agribusiness

Transport Municipal & EnvironmentalInfrastructure

FinancialInstitutions

NaturalResources

Energy

Manufacturing& Services

Sustainable Infrastructure Group

Sustainable Infrastructure Group: Energy

• EBRD energy investments cover electricity

generation (conventional, large hydro and

renewables), electricity transmission, electricity

distribution and natural gas distribution & pipelines.

• In 2018 EBRD invested over €1.6 billion in 34

projects in the energy sector.

• Cumulative EBRD financing in the energy sector

since 1992 has exceeded €13 billion, spread

across over 320 projects.

• In the last five years, annual energy investments

exceeded €1 billion and renewable energy

generation projects account for more than half of

those funds.

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Municipal & Env Inf29%

Transport26%

Energy45%

2018 SIG Annual Investment, by

sector € 3.57 billionEnergy sector

EBRD’s renewable energy portfolio is around

EUR 3 billion

• EBRD has been active in financing renewables projects since the first project – 156 MW Saint Nikola Wind Farm in

Bulgaria in 2008.

• Complex and award winning renewable transactions include: Burnoye Solar (Kazakhstan), Krnovo Wind Farm

(Montenegro), Salkhit Wind Farm (Mongolia), Ma’an Solar Programme Round 1 and 2 (Jordan), Efeler Geothermal

Plant (Turkey), Khalladi Wind Farm (Morocco), Dolovo and Kovacica Wind Farms (Serbia) and Benban Solar (Egypt).

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Annual investment in renewables

overtook fossil fuels

Solar becomes the largest

renewables source

EBRD is the leading financier of renewable

energy in its region

EBRD Renewable projects since inception to Feb 2019

• 169 projects in 31 countries

• 7 GW of new renewable capacity financed

• €5 billion of EBRD investment

• Equivalent total project value of €16 billion

Greenfield capacity only shown on map. MW total is greater than shown on

map due to regional projects not included and other minor adjustments.

Albania

32 MW hydro Armenia

22 MW hydro

Bulgaria

26 MW hydro

216 MW wind

Croatia

1.5 MW biomass

Cyprus

12 MW solar

Egypt

751 MW solar

Estonia

20 MW biomass

193 MW wind

North Macedonia

27 MW hydro

10 MW solar

Georgia

414 MW hydro

20 MW wind

Greece

125 MW wind

30 MW various

Hungary

158 MW wind

Jordan

265 MW solar

127 MW wind

Kazakhstan

100 MW hydro

395 MW solar

Mongolia

30 MW solar

155 MW windMontenegro

4 MW hydro

72 MW wind

Poland

130 MW biomass

1,083 MW wind

Romania

50 MW solar

557 MW wind

Serbia

4 MW biogas

26 MW hydro

263 MW wind

Turkey

190 MW geothermal

85 MW solar

520 MW wind

Ukraine

3 MW hydro

4 MW biogas

66 MW biomass

229 MW solar

215 MW wind

Morocco

120 MW wind

Belarus

4 MW biogas

Bosnia and Herzegovina

26 MW hydro

Russian Federation

40 MW geothermal

Azerbaijan

113 MW hydro

Green Economy Transition Initiative

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Objective to achieve 40% of Annual Bank Investments

in ‘green’ financing, by 2020

• Energy efficiency

• Renewable energy

• Water efficiency

• Resilience to climate change

• Waste minimisation and material efficiency

• Pollution control and environmental compliance

Activities covered as part of the Green Economy

Transition:

The EBRD will promote secure, affordable and sustainable energy

through the transition to a market-oriented low-carbon energy sector.Aim

Interrelated

strategic

directions

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What we will not

do

No thermal coal mining or coal-fired electricity generation capacity

No upstream oil exploration

No upstream oil development except in rare and exceptional circumstances

Interface with EBRD-wide approaches, initiatives and policies, other sector

strategies, and country-specific characteristics.

Decarbonisation

and

electrification

1 Cleaner oil

and gas

value chains

2 Well-

functioning

energy

markets

3 Energy-

efficient and

inclusive

economies

4

How?

By decarbonising economies, making them highly efficient, powered by

renewable energy and increasingly electrified

Energy Sector Strategy 2019-2023

Operational Approach

Investment

Technical cooperation

Policy dialogue

• Promoting sustainable energy

• Honest broker role

• Sharing experience and best practice

• Development equity

• Mezzanine

• Project finance

• Corporate loan

• Equity

• RE Frameworks

• Small Financing

Facilities

• Regulatory frameworks

• PPA drafting

• Grid absorption studies

• Designing RE auctions

• Energy markets (i.e. balancing)

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EBRD in Greece

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Sustainable Infrastructure Sector

EBRD Priorities

• Support further integration of Greece in the region through promoting

key transport links, logistics infrastructure and regional

interconnectors.

• Support energy market reforms (invested in Energy Exchange),

decarbonisation of the economy and privatisations

• Expansion and modernisation Investments in the electricity and gas

distribution girds.

• Support further expansion of renewable energy , particularly those

awarded through the RES auctions and mainly with the private sector

• Promote hybrid (renewable and storage) solutions to non-

interconnected islands and off-shore wind.

• Improve quality of municipal services through commercialisation,

better governance and improved operational and resource efficiency.

€28.3 million

Invested in 2017

€28.3m participation in

the €74.5m Eurobond

issue to support

company’s capex in

renewable energy

projects

€50m bond loan to

support development,

construction and

operation of new

renewable energy

projects

€50 million

Invested in 2016

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Sustainable Infrastructure Sector

Indicative Investments

€187 million

Invested in 2017

€187m long-term

financing for the

modernisation,

maintenance and

operation of 14 regional

airports

Invested in 2018

€10.0 million

€10m participation

in the €90m bond

issued and listed

on Athex

€500m loan for the

construction of the

Trans Adriatic Pipeline

(TAP)

€500 million

Invested in 2018

€18m long-term senior

debt financing for the

construction,

financing, refinancing

and operation of a

wind farm portfolio

€16.5 million

Invested in 2018

€1m investment to

finance the

establishment of the

first energy exchange

in the country

€1 million

Invested in 2018

€25m participation in

the €200m senior

unsecured bond to

finance the Pre-

Delivery-Payments for

aircraft purchases

€25 million

Invested in 2019

€15 million participation

in the €120 million

Corporate bond issued

and listed on Athex

€15 million

Invested in 2018

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Greek Renewable Energy Framework

Framework size EUR 300 million1

Sectors coveredElectricity distribution and transmission

Electricity generation from renewable sources3

Type of Clients Public or private clients4

Qualification

Projects that are 100% compliant with the Green Economy

Transition approach. i.e. for grids: (i) network modernisation and

expansion investments aiming to reduce losses, remove

technical/technology barriers that hinder renewables integration,

and improve efficiencies; (ii) communication systems and

automatic control systems investments aiming to support

implementation of smart grid systems; and (iii) investments

resulting in direct and indirect carbon emissions reductions.

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EBRD Finance Up to 35% of the Total Project Cost2

Contacts

21

Georgios Gkiaouris

Senior Banker, Energy EMEA

Sustainable Infrastructure Group

Tel: + 44 020 7338 7953

Email: giaourig@ebrd.com

For more information on EBRD’s

Green Economy Transition projects

and initiatives:

http://www.ebrd.com/what-we-

do/get/knowledge-hub.html

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