FINANCING OPTIONS FOR REGIONAL SUSTAINABLE ENERGY PROJECTS Launch/Planning Meeting REETA Project Georgetown, GUYANA February 10 – 12, 2014 T. Williams-Robertson Head, Renewable Energy/Energy Efficiency Unit Office of Vice-President, Operations February 12, 2014

CDB Purpose

3 Regional Members Borrowing Member Countries   Anguilla   Antigua and Barbuda   Bahamas, The   Barbados   Belize   British Virgin Islands   Cayman Islands   Dominica   Grenada  Guyana  Haiti  Jamaica  Montserrat  St. Kitts and Nevis  St. Lucia  St. Vincent & the Grenadines  Suriname  Trinidad and Tobago  Turks and Caicos Islands

CDB & Sustainable Development CDB re-focus on Sustainable Development Climate Resilience Strategy 2012 Creation of Environmental Sustainability Unit 2012 DFID assistance for: Climate Finance Advisor in VPO’s office Jan 2013 Adaptation Mainstreaming Consultancies Further collaboration with 5C’s on Regional Implementation Plan

Climate Resilience Strategy CDB’s Climate Resilience Strategy facilitates BMCs transition to a path of sustainable low carbon development Collaboration, Mobilisation of concessionary financial resources climate resilient investment - advancing EE/RE regional capacity- building

Climate Resilience Strategy (2) Strategy facilitates Increase in Competitiveness of private sector Energy efficiency: reduction in cost of goods/services produced price advantage

Regional Energy Sector Heavy dependency on fossil fuels High and volatile fuel oil prices Relatively tiny contribution of renewables in the energy mix and declining; exception is Barbados in solar water heating sub- sector Absence of economies of scale Improving, still insufficient knowledge sharing Regional Energy Sector

CDB Response RE/EE RE/EE in Sustainable Development Transitional Renewable Energy & Energy Efficiency Unit established Jan in VPO’s office Development of CDB Energy Policy imminent On-going support from Special Development Fund and other Funds being discussed.

Target Energy Sector Increase private sector investment - for expansion in RE, EE – Financial Intermediaries Quick wins -Energy Efficiency Harmonised Regulatory Framework Interconnection Policies – facilitate sale of excess power to grid economies of scale Continuous capacity building

Global Funds

Accessing Climate Finance GEF Trust Fund Grants ( ) LDCFSCCFAFPilot Program for Climate Resilience Global694 national projects USD 2.5 billion 158 Projects USD 504 million 39 Projects USD 135 million 28 Projects USD 184 million Total Pledges USD 1.3 billion Caribbean33 Projects USD 23.7 million (grants) 3 Projects USD 6.4 million (grants) 1 Projects USD 715,000 (grants) 1 Project*° USD 9.96million (grants) Caribbean Program USD million (grants) USD 36 million (other concessional resources) * + one endorsed concept for Belize ° direct access project in Jamaica

CDB Own Resources to BMCs Ordinary Capital Resources; –Country Strategies prepared 3-4 years –Variable Interest Rate, currently 4% Special development Resources (SDF) –Agreed themes with contributors –Concessionary rate 2.5%

EIB Climate Action Line of Credit Focus: Increased resilience to Climate Change impacts EUR 50mn ( approx US $65mn) approved and signed Dec TA GRANT EUR 4 mn approved Dec 2013 Interest rate subsidy up to 50% of fixed EIB rate to CDB (up to 3%) Financing up to 75% of total project cost for climate action EE, RE, Transport, Forestry/land-use, low-carbon technologies research, Adaptation

EIB TA Support to CALC Support CDB to enhance climate action policies/processes Support BMCs potential negative CC impacts Capacity building climat action Preparatory studies eligible CA projects TA GRANT EUR 4 mn approved Dec 2013 Component to support CDB/EIB liaison/approvals EU1.5mn Project preparation facility for new projects EU 1.5 mn Upstream pre- feasibility/master plans EU 1 mn

EU-Caribbean Investment Facility (CIF) CDB eligible to access CIF resources as MDB CIF Funding available including RE/EE: –10 th EDF = EU 47 mn – 11 th EDF = EU 140 mn Participate in Technical Group - Financial Institutions Group (FIG)

Role of CTCS Energy audits Capacity building Bankable proposals Support for design works Regional consultation workshops Proposed Collaboration CDB/German Government/GIZ expert assistance Caribbean Technological Consultancy Services (CTCS) Network

OECS Sustainable Energy USD 1.59 mn CDB Grant to OECS Secretariat (Commission): (Sub) Regional Energy Efficiency Strategy (REES) and Action Pla n National Strategies/Action Plans Model Legislation – regulations, rules for energy management Public Education and Awareness on EE

OECS SETA Status (2) USD 1.59 mn CDB Grant to OECS Secretariat (Commission): (Sub) Regional Energy Efficiency Strategy (REES) and Action Pla n National Strategies/Action Plans Model Legislation – regulations, rules for energy management Public Education and Awareness on EE

PROPOSED SEEC US$ 10 mn EU- CIF/DFID/CDB financed SEEC proposed by IDB for OECS CDB Support: Private sector pilot - Financial Intermediaries 4* $0.5 mn Lines of Credit $2 mn of CDB Micro- finance Guarantee Scheme CTCS Network SEAP to support RE/EE initiatives

FINANCIAL INTERMEDIARY PILOT Already started and included in SEEC: USD 2 million CDB pilot with 4 OECS DFIs = 4*500K Concessionary SDF resources CTCS network leading on EAs Technical capacity-building FIs, Auditors, Contractors, sub-loan clients

SEEC Scope Niche for early SEEC focus on: – retrofitting government buildings – MSMEs through FIs – Build Capacity Energy Auditors, FIs – Implementation Recs OECS/SETA Project GEF resources as counterpart for 3 OECS countries Include arrangements for other donors to join CDB-financing for credit risk guarantee for CDB lending through FIs

INITIATIVES Various Regional Initiatives financed by Donors: –CDB-financed OECS Sustainable Energy Technical Assistance (SETA) Project –CREDP project identification already undertaken, Program extended. – Sustainable Energy Audit Protocol developed, Energy Audits launched – SLU, DOM through DFIs –5Cs EE Project – ANU, GRN, SLU, T&T launch Aug 2013 –REETA –SIDS DOCK

25 This is our Region Let us protect it for our future! Thank You!