Clean Energy Finance
iiec name
IIEC’s Experience in Clean Energy Finance
 

At a Glance:

IIEC designs innovative financing mechanisms and provides capacity building in project financing to facilitate access to finance for Energy Efficiency (EE) and Renewable Energy (RE) projects. We seek to identify and promote financing opportunities for employing technologies and initiatives to mitigate carbon emissions. Our programs foster growth in clean energy markets by developing financing solutions, identifying economic opportunities, reducing perceived investment risks, and connecting stakeholders across sectors in order to build environmentally sound financial partnerships.

Our Experience:

Our programs address all stages of project finance – from identifying appropriate funding mechanisms to capacity building on clean energy project finance for stakeholders on both the supply and demand sides. We work with financial institutions, entrepreneurs, project developers, governments, and Energy Service Companies (ESCOs) to build investment potential and ensure both monetary and environmental returns. This involves helping institutions assess the financial viability of clean energy programs, and designing financial models to suite programmatic needs.

The Challenge:

The Energy Efficiency (EE) and Renewable Energy (RE) technologies and practices needed to develop the global clean energy market exist, but must be implemented on a massive scale in order to address growing energy demand and achieve significant greenhouse gas emission reductions. This will require the financial commitment of stakeholders in both the public and private sectors to galvanize change in the ways we use and produce energy. Although such changes provide tremendous financial opportunities for stakeholders at all levels, the current lack of knowledge, the need for suitable financial products, and the barriers to making initial investments are significant constraints to scaling and implementing clean energy solutions. IIEC uses our extensive knowledge of clean energy finance to address these financial barriers and increase access to capital through development of innovative financing policies and mechanisms.

IIEC’s experience in this key activity, categorized by country is listed below:

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China TOP LINK
Project Title
Strategy for establishing a Venture Capital Fund for GHG Reduction Projects in China

Region

Asia

Service Area

Clean Energy Finance

Project Title

Strategy for establishing a Venture Capital Fund for GHG Reduction Projects in China

Country

China

Client

UNIDO

Project Funding Agency

UNIDO

Project Duration

Start Date

Jan 2004

Scheduled Completion

Jun 2004

Project Description and Summary of Services

 

 

 

 

 

Businesses in China engaged in development of products or services that promote energy conservation and efficiency, use of clean and renewable energy resources, or both, cannot find sufficient financial resources due to certain systemic factors. The project addressed these systemic by designing the Fund, initially conceived as China’s first venture capital fund dedicated to financing businesses engaged in commercial EE, renewable energy and clean energy business activities.

 

Specifically, the Fund design was intended to help overcome:

 

  • A lack of access to financial resources, particularly equity investment and follow-on commercial bank loans, needed to improve EE;
  • Lack of awareness among Chinese SMEs regarding both the cost benefits associated with EE and the means to achieve it;
  • General lack of familiarity in China with market-driven approaches to efficiency improvements due to the country’s legacy of being a planned, rather than market economy.

The Fund was designed to be a source of equity investment that can enable SMEs to pursue energy related business ventures that are profitable and furnish meaningful environmental benefits in China.

 

Services Provided:

 

  • Assisted in the structuring of a venture capital fund to invest in projects in China that would reduce GHG emissions
  • Worked with UNIDO staff, a venture fund manager, two NGOs and representatives of the governments of Shanghai and Beijing to identify alternative fund design and management options
  • Defined potential investment opportunities 
  • Assessed the options for technology transfer from Western countries to China to help reduce carbon emissions.

Contact for more information

iiecbangkok@iiec.org

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India TOP LINK
Project Title
Development of Financial Products and Related Institutional Mechanisms - India

Region

Asia

Service Area

Clean Energy Finance

Project Title

Development of Financial Products and Related Institutional Mechanisms - India

Country

India

Client

Asian Development Bank

Project Funding Agency

Asian Development Bank

Project Duration

Start Date

Jan 2003

Scheduled Completion

May 2005

Project Description and Summary of Services

 

 

 

 

 

  • Identify existing barriers to the establishment of an energy efficiency (EE) market, and the appropriate policy interventions to address these barriers
  • Conduct a market assessment to define the key market segments that will be targeted for EE projects funded by the follow-on ADB loan
  • Develop a set of financial products that can be provided to energy users, ESCOs, and financial institutions to help finance and implement EE projects
  • Identify the existing and potential ESCOs that will provide EE project services to energy consumers using the financial products
  • Identify the appropriate Executing Agency and financial intermediaries that will serve as the channels to deliver these financial products to the targeted markets
  • Develop an initial set of bankable EE projects for funding under the ADB loan.


Service Provided:

  • Team Leader
  • Development of Policy Framework Report
  • Assessment of EE market
  • Identification and assessment of Financing Mechanisms
  • Development ofm Partial Credit Guarantee (PCG) program

Contact for more information

iiecmumbai@iiec.org

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Strategic Framework for Implementation of EE Projects for Indian Water Utilities

Region

Asia

Service Area

Clean Energy Finance

Project Title

Strategic Framework for Implementation of EE Projects for Indian Water Utilities

Country

India

Client

The World Bank

Project Funding Agency

The World Bank

Project Duration

Start Date

Sep 2004

Scheduled Completion

May 2005

Project Description and Summary of Services

 

 

 

 

 

• Develop a strategic framework including financing mechanisms for the design and implementation of energy efficiency projects for municipal water utilities through private sector participation
• Define the energy services performance contracting (ESPC) approach and identify and evaluate various options for application of ESPC to public sector projects
• Apply this framework to the case of the Delhi Jal Board, to test its relevance and practicality
• Enable effective dissemination of the framework to other Indian water utilities through a workshop organized by the World Bank.
• The framework developed in this project was structured to be replicable for other water utilities in India and the region.


Service Provided:

• Development of the Framework
• Definition and explanation of ESPC concept
• Assessment of ESPC applications for Delhi Jal Board
• Development of financing mechanisms for ESPC
• Assessment of potential energy savings and GHG reduction
• Stakeholder Workshop

Contact for more information

iiecmumbai@iiec.org

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Kenya TOP LINK
Project Title
Financial Engineering Training Course – Kenya

Region

South Africa

Service Area

Clean Energy Finance

Project Title

Financial Engineering Training Course – Kenya

Country

Kenya

Client

 UNDP/GEF

Project Funding Agency

 UNDP/GEF

Project Duration

Start Date

 2004

Scheduled Completion

 2004

Project Description and Summary of Services

 

 

 

 

 

A component of the “Removal of Barriers to Energy Conservation and Energy Efficiency in Small and Medium Scale Enterprises,”   this project  reduced the Carbon Dioxide (CO2) emissions resulting from increased energy efficiency activities in the SME sector in Kenya. It achieved this through the removal of capacity and financial barriers to the implementation of energy efficiency (EE) and energy conservation (EC) projects in SMEs.

IIEC conducted  a financial engineering training course that increased the ability of industry engineers and managers to develop and implement bankable EE and EC projects and helped them integrate energy efficiency in their organizations’ operations.  IIEC also helped sustain the delivery of the financial training course by developing the capability of  local consultants to conduct similar financial engineering courses in the future.

Contact for more information

 iiecbangkok@iiec.org

 

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Mongolia TOP LINK
Project Title
Asia Energy Efficiency Accelerator – Assessing Energy Efficiency Potential in Mongolia

Region

Asia

Service Area

Clean Energy Finance, Energy Efficiency

Project Title

Asia Energy Efficiency Accelerator – Assessing Energy Efficiency Potential in Mongolia

Country

Mongolia

Client

ADB

Project Funding Agency

ADB

Project Duration

Start Date

Nov 2015

Scheduled Completion

Ongoing

Project Description and Summary of Services

 

 

 

 

 

The overall objective is to strengthen the institutional capacity and access to information to facilitate Demand Side Energy Efficiency (DSEE) investment in Mongolia.

Our services include the following tasks:

  • Assessment of DSEE potential in Mongolia
  • Identification of Appropriate Business Model for DSEE Investment
  • Identification of Suitable Technologies
  • Development of Investment Portfolio for DSEE for Mongolia

Contact for more information

iiecmanila@iiec.org

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Nationally Appropriate Mitigation Actions in the Construction Sector in Mongolia

Region

Asia

Service Area

Clean Energy Finance

Project Title

Nationally Appropriate Mitigation Actions in the Construction Sector in Mongolia

Country

Mongolia

Client

UNDP

Project Funding Agency

United Nations Development Programme - Mongolia/ GEF

Project Duration

Start Date

Oct 2014

Scheduled Completion

Jan 2015

Project Description and Summary of Services

 

 

 

 

 

The objective of the assignment is to develop a medium size project that will support Nationally Appropriate Mitigation Actions in the Construction Sector of Mongolia.

IIEC provided consultancy services which included:

  • Review of international best practices for financing climate mitigation actions that are applicable to Mongolia's context, including green building standards, green premium and investment needs and past, ongoing and anticipated relevant financial options
  • Proposed feasible options for financial mechanism(s) to support the implementation of scaled up mitigation action/NAMA in the construction/buildings sector in Mongolia along with financial plans to support detailed design of NAMA and MRV framework
  • Formulate project plan comprising of outputs, activities, indicators, and budget that will be supported through GEF assistance and ToRs for financial expert required during project implementation

Contact for more information

iiecmanila@iiec.org

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Commercialization of Super Insulated Buildings - Mongolia

Region

Asia

Service Area

Clean Energy Finance

Project Title

Commercialization of Super Insulated Buildings - Mongolia

Country

Mongolia

Client

Ministry of Construction and Urban Development, Government of Mongolia

Project Funding Agency

United Nations Development Programme - Mongolia

Project Duration

Start Date

Jul 2005

Scheduled Completion

Dec 2005

Project Description and Summary of Services

 

 

 

 

 

The project promoted energy efficient houses with special focus on the use of straw bale as insulation. With funding from UNDP, the project provided technical assistance and capacity building to construction workers, home builders, home owners as well as straw bale suppliers. It also provided information dissemination on this type of housing technology which has been proven to reduce pollution, promote energy efficiency and use renewable resources.

IIEC provided financial advisory which included:

  • Review of the financing systems and existing legislations for energy efficiency and the housing sector
  • Evaluation of the financial mechanisms developed by the project
  • Development of proposals for alternative funding mechanism
  • Development of a clear set of guidelines for strawbale housing fund raising
  • Development of recommendation to the Government and the financial sector of Mongolia to increase the financing for the construction of strawbale housing

Contact for more information

iiecmanila@iiec.org

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Philippines TOP LINK
Project Title
Financial Advisory for the "CBRED Project on Renewable Energy Initiatives and Delivery Mechanism" - Philippines

Region

Asia

Service Area

Clean Energy Finance

Project Title

Financial Advisory for the "CBRED Project on Renewable Energy Initiatives and Delivery Mechanism" - Philippines

Country

Philippines

Client

Department of Energy

Project Funding Agency

United Nations Development Programme

Project Duration

Start Date

Mar 2005

Scheduled Completion

 

Project Description and Summary of Services

 

 

 

 

 

The objective of the Capacity Building for Removal of Barriers to Renewable Energy Development (CBRED) Project is to strengthen the capacity of relevant agencies of the Philippine Government in formulating, enacting and implementing sound RE policies; to provide RE information to targeted audiences in order to build markets; to assist market penetration of RE in remote off-grid communities; and to improve the quality of RE technologies. Six components make up the CBRED Project, and the RE Initiatives and Delivery Mechanism is the 4th component. It is specifically intended to address the financial barriers to RE development by establishing 3 pilot funds such as:

 

  • Project Preparation Fund – a fund providing partial grant to assist RE developers in the project development stage particularly in the preparation of feasibility studies and project design
  • Loan Guarantee Fund – a fund providing guarantee to financial institutions to enable RE project proponents access financing for their projects in off grid areas
  • Micro-Finance Fund – a fund providing financing at concessional rates on a long-term basis for small scale or off-grid RE projects

 

Services Provided:

 

  • Financial advisory services
  • Due diligence review of the three pilot funds
  • Development of fund promotions program and design of promotional materials
  • Design and review of appropriate financing structure for potential renewable energy projects

Contact for more information

iiecmanila@iiec.org

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PELMATP Formulation and Implementation of EEL Leasing Model - Philippines

Region

Asia

Service Area

Clean Energy Finance

Project Title

PELMATP Formulation and Implementation of EEL Leasing Model

Country

Philippines

Client

Philippine – Department of Energy

Project Funding Agency

UNDP

Project Duration

Start Date

Oct 2008

Scheduled Completion

Sept 2009

Project Description and Summary of Services

 

 

 

 

 

To address barriers to the widespread use of energy efficient lighting (EEL) systems in the country, the Philippine Government, through the Department of Energy (DOE), is implementing the Philippine Efficient Lighting Market Transformation Project (PELMATP). The project has five components designed to address policy, institutional, information and financial barriers. It also addresses the appropriate waste management of used or discarded lamps that could result from the increased adoption of EEL lighting systems. The project which is being implemented over five years is supported by the Global Environment Facility (GEF) through the United Nations Development Programme (UNDP).

Component 2 EEL Applications Institutional and Technical Capacity Development Program is designed to address institutional barriers. The International Institute for Energy Conservation (IIEC) has been subcontracted to handle the Formulation and Implementation of EEL Leasing Model which is a sub-component of Component 2. This sub-component seeks to develop an EEL leasing scheme that could serve as a template and assist electric utilities and rural electric cooperatives (RECs) to develop and implement their own customer service programs.

IIEC’s tasks in this assignment include:

  • Study and draw lessons learned from the  implementation of the  CFL Paylight Program  of CEPALCO
  • Study the business development and marketing strategies of electric utilities and RECs
  • Design an EEL Leasing Model appropriate to the operation of electric utilities and RECs
  • In collaboration with PELMATP PMO identify an electric utility and an REC on which to test or implement the model
  • Monitor the first month operation of the leasing scheme and refine the model.

Contact for more information

Lei Dealino (adealino@iiec.org)

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PELMATP Design and Implementation of EEL Micro Financing Scheme - Philippines

Region

Asia

Service Area

Clean Energy Finance

Project Title

PELMATP Design and Implementation of EEL Micro Financing Scheme

Country

Philippines

Client

Philippine – Department of Energy

Project Funding Agency

UNDP

Project Duration

Start Date

Jan 2008

Scheduled Completion

Aug 2009

Project Description and Summary of Services

 

 

 

 

 

The Philippine Efficient Lighting Market Transformation Project (PELMATP) is a five year project being implemented by the Government of the Philippines through the Department of Energy (DOE). The project aims to remove barriers against the widespread use of energy efficient lighting (EEL) systems in the Philippines. It is supported by the Global Environment Facility (GEF) through its implementing agency, the United Nations Development Programme (UNDP).


PELMATP has several components addressing policy, institutional, information, and financial barriers. The Design and Implementation of EEL Micro Financing Scheme is one of the components earmarked to address the financing barriers. . Its goal is to promote EEL through consumer cooperatives, a sector noted to be effective distribution channel of consumer products. The expected output is a micro financing/ business model scheme that will facilitate procurement and distribution of EEL products through the said sector.


These deliverables are as follows:

  • Conduct inventory and assessment of existing consumer cooperatives for the purpose of identifying the type of cooperatives that can participate in EEL micro financing and determine their capacity building needs.
  • Develop the appropriate EEL Micro financing model(s) suitable for consumer cooperatives.
  • Conduct regional consultations with consumer cooperatives and provide the training to capacitate the cooperatives to participate in the micro financing model developed. A set of criteria will be developed to select the most suitable training sites.
  • Negotiate financing bulk procurement arrangements with EEL suppliers (importers and manufacturers)
  • Implement the micro financing models in three (3) cooperatives in the country preferably one each in Luzon, Visayas and Mindanao.

Contact for more information

Lei Dealino (adealino@iiec.org)

 

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Consultation Workshop with consumer cooperatives based in Visayas and Mindanao Regions

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Consultation Workshop with consumer cooperatives based in Luzon

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Training Workshop for consumer cooperatives based in Visayas and Mindanao

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Training Workshop for consumer cooperatives based in Luzon

 

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Design of Risk Sharing Mechanism for the "Palawan New and Renewable Energy and Livelihood Support Project" - Philippines

Region

Asia

Service Area

Clean Energy Finance, Renewable Energy

Project Title

Design of Risk Sharing Mechanism for the "Palawan New and Renewable Energy and Livelihood Support Project" - Philippines

Country

Philippines

Client

Center for Renewable Resources and Energy Efficiency

Project Funding Agency

United Nations Development Programme

Project Duration

Start Date

Oct 2002

Scheduled Completion

Sep 2005

Project Description and Summary of Services

 

 

 

 

 

This project  demonstrated the viability of direct sales for renewable energy and other appropriate delivery mechanisms that would enable low-income households in non-electrified communities to have access to renewable energy systems. 

For this project IIEC:
- Designed the  risk-sharing finance mechanism for the direct sales of solar housing systems
- Provided financial advice during the pilot implementation of the designed risk-sharing mechanism for direct sales
- Designed the  appropriate renewable energy delivery mechanism and corresponding risk-sharing finance mechanism
- Designed and recommended the  implementation and management guidelines for an NRE Trust Fund
- Recommended the  risk-sharing and support mechanisms for the NRE Trust Fund
- Recommended the  training needed by  PGP and the institution that would manage the NRE Trust Fund

Contact for more information

iiecmanila@iiec.org

 

 

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Regional & Global TOP LINK
Project Title
Evaluation of International Finance Corporation's Commercializing Energy Efficiency (CEEF) Program - Europe

Region

Europe

Service Area

Clean Energy Finance

Project Title

Evaluation of International Finance Corporation's Commercializing Energy Efficiency (CEEF) Program - Europe

Country

Hungary, Czech Republic, Slovakia, Latvia, Lithuania and Estonia

Client

International Finance Corporation (IFC)

Project Funding Agency

International Finance Corporation (IFC)

Project Duration

Start Date

Oct 2005

Scheduled Completion

Jun 2008

Project Description and Summary of Services

 

 

 

 

 

  • Estimation of the avoided GHG emissions to date resulting from the CEEF program
  • Assessment of the program’s broader impact on the Estonian, Latvian, Lithuanian, Czech and Slovak markets
  • Documentation of the program’s outcomes and outputs in relation to the performance indicators listed in the project’s Logical Framework
  • Documentation of the factors that have most contributed to the program’s success and weaknesses, including an assessment of the potential sustainability of the results


Services Provided:


  • Assessment of the credit guarantee program including number projects, energy savings, GHG impacts, GEF costs, etc.
  • Evaluation of role and performance ofmn participating financial institutions
  • Evaluation of the efficiency and effectiveness of program operations
  • Assessment of impact on country markets

Contact for more information

iiecbangkok@iiec.org

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Viet Nam TOP LINK
Project Title
Financial Advisory for the "Promotion of Energy Conservation in Small & Medium Enterprises Project" - Viet Nam

Region

Asia

Service Area

Clean Energy Finance

Project Title

Financial Advisory for the “Promotion of Energy Conservation in Small & Medium Enterprises Project” - Viet Nam

Country

Viet Nam

Client

Ministry of Industry

Project Funding Agency

United Nations Development Programme

Project Duration

Start Date

Mar 2003

Scheduled Completion

Aug 2003

Project Description and Summary of Services

 

 

 

 

 

The objective of the project is to provide financial advisory to the Ministry of Industry on the design of a future fund to support the energy efficiency initiatives of small and medium enterprises (SMEs). The project includes an assessment on the accessibility of the current financing programs of commercial banks in Vietnam. The project also assesses the capabilities of banks to administer such fund and the capabilities of SMEs in designing the financial structure of their projects and recommend solutions to address their training needs.


Services Provided:

•    Profiling of SMEs and financial institutions
•    Sector analysis
•    Recommend appropriate funding mechanism
•    Preparation of implementation guidelines for pilot transactions
•    Training needs assessment of SMEs and financial institutions

Contact for more information

iiecbangkok@iiec.org



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