In December 2013, EDFI, the EIB and the EC created the “European Union – European Development Finance Institutions Private Sector Development Facility” (EEDF) a facility dedicated to promoting access to modern energy services in Africa, the Caribbean and Pacific countries.
EEDF is a component of the SUSTAINABLE Energy for All (SE4All), initiative launched by the United Nations Secretary and supported by the European Union. It combines EU funds with resources from private project developers and other private financiers in renewable energy and energy-efficient projects, and more broadly in projects aimed at promoting universal access to modern energy services in Africa, the Caribbean and Pacific countries.
The risk-sharing mechanism implemented by EEDF allows EDFIs to finance projects addressing the objectives of SE4All that would not have been supported under current market conditions (because they are at an early stage of development and/or have a high-risk profile) and to ensure their bankability.
In addition, the facility includes technical assistance to support feasibility studies, capacity building and advisory services. Both technical assistance and EU guarantees thus provide significant additionality to financing partners’ portfolios.
EEDF has an initial budget of €50 million. A total of €45 million for guarantees and €5 million for technical assistance are available to be committed until December 2019 on a first come first serve basis.
Photo credit: © Danper Trujillo S.A.C.