Scaling-up Renewable Energy Program in Low Income Countries (SREP)

The Climate Investment Funds were created in 2008 to bridge the financing and knowledge gap in expectation of the next international climate agreement. Two trust funds, the Clean Technology Fund (CTF) addressing emerging countries and the Strategic Climate Fund (SCF) addressing developing countries were created and funded by developed countries with over $ 8.3 billion of public funds. The SCF supports three programs for low-income countries, including SREP, the Forest Investment Program (FIP) and the Pilot Program for Climate Resilience. The funds are governed by committees with equal representation of contributor and beneficiary countries.

The overall objective of the Scaling-Up Renewable Energy Program in low income counties (SREP) is to demonstrate the economic, social and environmental viability of renewable energy and thereby lead to a transformation of the energy sector and economy of beneficiary countries towards low-emission growth paths. The SREP follows a programmatic approach where beneficiary countries determine their objectives and programs or projects in the framework of an investment plan based on their strategy for renewable energy. Besides co-financing investments in renewable energy projects or programs, SREP also aims to increase the knowledge base of all participating countries and to improve their enabling environment. The projects are implemented through five multilateral development banks (MDBs) which also co-finance the SREP projects with loans. The mobilization of such and other co-financing, notably from the private sector, is also an objective of the SREP.

The core indicators of the SREP are the additional electricity (or other modern energy) generated from renewable energy sources and the number of men and women gaining improved access to electricity (or another modern energy) as a consequence of SREP actions. The aggregated targets on these indicators, for all beneficiary countries with an endorsed investment plan (as of 31 December 2017), are respectively 6’778 GWh/y and 17.4 million people. The amount of greenhouse gas emissions thereby avoided is a major co-benefit of SREP and the aggregated target is 5.4 million tCO2eq/y. The expected aggregate co-financing from all (public and private sources) on the basis of the endorsed investment plans is $6.1 billion, meaning that each dollar of SREP funding should leverage 7.4 US dollars of other funding. As of 31 December 2017, $502.4 million SREP funding was approved for 39 projects and programs, with an expected co-financing of $2.6 billion and a leverage ratio of 1:5.1.

Resultados previstos:  

Of 27 potential SREP beneficiary countries, 20 now have endorsed investment plans with a total of 62 projects and an indicative funding allocation of $763.5 million. In addition 7 projects were endorsed for funding from a special Private Sector Set Aside with a funding allocation of $92.4 million. The $502.4 million SREP funds so far allocated to approved projects will co-finance energy generation from the following renewable sources: 45.8% mixed renewable energy, 28.1% solar PV, 17.2% geothermal, 6.8% small, mini and micro hydro power and 0.5% cook-stoves. These projects are located in Africa (50%), Asia (33%), Latin America & Caribbean (15%) and Europe & Central Asia (2%). Implementing partners (MDBs) are the World Bank Group (52%), the African Development Bank (20%), the Asian Development Bank (17%), the Inter-American development Bank (10%) and the European Bank for Reconstruction and Development (1%). 86% of this financing goes to public sector and 14% to private sector projects.