Energy Facility is a funding mechanism that is part of
The Energy Facility for African, Pacific and Caribbean countries
promote initiatives and projects in the area of energy
in ACP countries. It's based on the idea that access to modern energy
is a prerequisite for social and economic development.
Grants are made for projects in combination with other other financial
sources, such as private investments.
It is so far the main outcome of the
EU Energy Initiative
It was first proposed by the EU commission (Communication of 26 October
2004 on the future development of the EU Energy Initiative ...(COM(2004)711final),
and was adopted by the EU development ministers together with representatives
of ACP countries June 25, 2005.
The first energy facility was provided
for the period 2006-2009 with
220 million Euro and a call was opened in June 2006 with the deadline
October 6, 2006. Based on this call 198 mill. Euro were
given to 75 projects. Read more here
Additional activities were a 5
Mill. Euro 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
In 2009, a second energy facility was agreed
for the period 2009-2013 financed with 200 million Euro and a call was made
with a deadline 1/2 2010 and a budget of 100 milion
Euro. The total amount of 98.5 mill. Euro was given to
For the implementation of this second energy
facility it was created a Pooling Mechanism with the aim of promote investment
in energy from the private sector in rural and peri-urban areas in ACP
states. The guidelines of this Pooling Mechanism were published on February
2011, read it under
icafrica.org (pdf). See also ACP-EU
nergy Facility publication (pdf`)
The second call
of the second energy facility is expected soon, also with a budget of
Euro. It is one of the instruments implementing the Africa-Europe Energy
Partnership (AEEP), which is part of the 2011 – 2013 Joint Africa-EU
Strategy. Read more on the website
of the AEEP.
Four principles for the Facility:
The Facility shall help countries to establish their institutional
and regulatory framework and to attract additional financial resources
for public-private partnerships.
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:
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.
an enabling environment: The Facility facilitates the implementation of
sound national energy policies and strategies, improves the institutional,
legal and regulatory framework, strengthen the capacity of key stakeholders,
and improves monitoring and evaluation capacity.
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. (not necessarily included in future calls)
Website of the ACP Energy Facility
to EU Energy Policy