The U.S. government will invest $1.25 million in a fund to promote sustainable energy projects throughout Latin America and the Caribbean.
WASHINGTON, DC –
Secretary of Energy Bill Richardson and Interamerican Development Bank (IDB) President Enrique Iglesias announced the establishment of the Hemispheric Sustainable Energy Fund (HSEF) to help prepare and define sustainable energy projects in the region. The fund enables the creation of a multimillion dollar family of funds to move sustainable energy projects from the idea stage and into marketable operation.
“This is an important contribution for sustainable energy and transportation projects and sets the stage for other countries to join this effort,” adds Iglesias.
Following last year’s meeting of Western Hemisphere energy ministers, DOE and the IDB formed a partnership to help clean energy projects in the region access international financing.
HSEF was developed to enable these projects to overcome financing difficulties by preparing and defining projects that can be successfully marketed and executed. HSEF will finance consulting services for preparation of feasibility studies, market analysis, financing mechanisms and project appraisals for projects that utilize sustainable energy, renewable energy and clean energy technologies.
The IDB will administer the funds for eligible institutions such as national and local governments, non-governmental organizations, and regional organizations.
Funds could be released for small countries that want to attract private financing for the development of a solar power project in a remote isolated village. To attract a sponsor, developers would prepare an idea, which would be submitted by the government to the IDB, which would evaluate the proposal.
Project selection is based on these criteria: – Located in a borrowing member country, – Promotes community based sustainable energy development, – Demonstrates potential to attract future private investment in sustainable energy development Increases access to under-served and unserved areas, – Strengthens commitment to sustainable energy policies and reforms in host countries and – Strong private sector role that fosters long-term markets.