Bioenergy, Geothermal, Hydropower, Solar, Wind Power

German-led Program Targets Latin America, the Caribbean

The German Ministry for Economic Cooperation and Development and the Inter-American Development Bank will carry out a joint program to promote the use of renewable energy and energy efficiency in Latin America and the Caribbean.

Through its implementing agency, the Deutsche Gesellschaft fuer Technische Zusammenarbeit (GTZ), the German government will donate 2.6 million euros to the program, of which 1 million euros are to be channeled through the IDB and the remainder administered by GTZ. The program, which may also receive contributions from other sources, will entail knowledge dissemination, studies, best practices information and technical assistance. During the next three years energy efficiency and renewable energy concepts will be incorporated in country or sector strategies of interested borrowing member countries of the IDB, and it is expected that this will result in project applications for future operations. The program will promote renewable energy and energy efficiency programs through seminars and other activities involving public and private sector institutions as well as civil society organizations in Latin America and the Caribbean. Such activities could include studies that support the identification, evaluation, and preparation of projects designed to improve member countries’ energy mix and efficiency. Projects could also be cofinanced by the Kreditanstalt fuer Wiederaufbau (KfW), the German executing agency for financial cooperation. The financial agreement between GTZ and the IDB was signed on June 6, 2005, and is the tangible result of the Strategic Partnership Agreement for Cooperation on Renewable Energy Development signed in Bonn in 2004 between the German Ministry for Economic Cooperation and Development and the IDB on the occasion of the International Conference on Renewable Energy. This partnership agreement was built upon the Memorandum of Understanding between the Ministry of Economic Cooperation and Development and the IDB, signed in 2002, that covers the support for IDB operations from the German government, GTZ, KfW, and other development institutions.