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10th EDF ENERGY FACILITY

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Title: 10th EDF ENERGY FACILITY


1
10th EDF ENERGY FACILITY
ECOWAS Trade Investment Conference04/06/2009
2
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
3
Presentation of 1st EF CfP results
4
Presentation of 1st EF CfP results
5
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

6
Presentation of 1st EF CfP results
7
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

8
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

9
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

10
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

11
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

12
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

13
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

14
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

15
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

16
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

17
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

18
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
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