The
International Network
for Sustainable Energy
EU
Energy Policy
UNUpdate: December 2008
The
Energy Facility is a funding mechanism that is part of
EuroAid.
The Energy Facility for African, Pacific and Caribbean countries
catalysts promoting initiatives and projects in the area of energy,
acting
as a clearing house and building research and management capacity
in ACP countries. It's based on the idea that access to modern energy
services
is a prerequisite for social and economic development.
It combines development aid and other financial sources, especially
private investments.
It is so far the main outcome of the
EU Energy Initiative
It was proposed by the EU commission (Communication of 26 October 2004
on the future development of the EU Energy Initiative and the modalities
for the establishment of an Energy Facility for ACP countries (COM(2004)711final),
and was adopted by the EU development ministers together with representatives
of ACP countries June 25, 2005.
The A 220 M Euro ACP-EU Energy Facility, with a main focus on co-financing of delivery of modern energy services to rural areas in Sub-Sahara Africa, and of energy efficiency/renewable energy in Caribbean and Pacific Island States.
The facility was provided with 220 million Eur and a call was opened in June 2006 with the deadline of October 6, 2006. Based on this call 198 mill. Eur were given to 75 projects. These projects are now ongoing. Read more here
Additional activities are a 5 Mill. Eur EUEI Partnership and Dialogue Facility (PDF), supporting EUEI upstream dialogue’ (e.g. policy, capacity building and partnership development) with Developing Countries. The PDF is funded by 6 EU Member States (Austria, France, Germany, the Netherlands, Sweden, UK) and managed by GTZ in Germany. Read more here
Four principles for the Facility:
• Governance:
The Facility shall help countries to establish their institutional
and regulatory framework and to attract additional financial resources
for public-private partnerships.
• Ownership:
The Energy Facility is an instrument to support and deepen the involvement
of actors in ACP countries in the building and implementation
of energy policies.
• Flexibility: The Facility will be open to joint financing with Member States,
other international financing institutions such as the European Investment
Bank and private sector investments
• Innovation: The Facility is intended to offer innovative responses to the
challenge of providing sustainable energy services to the poorest areas. Projects
could include electrifying rural areas, improving the efficiency of households'
cooking and promoting sustainable energy generation through biomass, small
hydroelectric plants and wind turbines.
Three Priority Activity Areas:
• Delivery
of energy services: The largest financial contribution from the Facility
shall improve rural people's access to modern
energy services. Priority shall be given to people in unserved areas.
• Creating
an enabling environment: The Facility facilitates the implementation of
sound national energy policies and strategies, improve the institutional,
legal and regulatory framework, strengthen the capacity of key stakeholders,
and improve monitoring and evaluation capacity.
• Supporting
future large-scale investment programs: Up to 20% of the Facility resources
are devoted to preparatory activities required to facilitate
future large-scale investment plans for cross-border interconnections, grid
extensions and rural distribution, preparing them for financing by international
finance institutions.
Member States are involved in the development and overall guidance of the Facility to ensure the necessary coordination of their own bilateral activities with those of the Facility.
Website of the ACP Energy Facility