The development of renewable energy programs in the region has been slower than it was anticipated and governments need to take certain steps, primarily related to the regulatory framework, in order to encourage further progress of the sector. The Green for Growth Fund (GGF) can offer support for worthy projects to overcome obstacles in project financing and implementation, says Carrie Walczak, head of Project Finance.
According to Walczak, first and foremost, governments need to decide what they like to do for the renewable energy programme, what is required by the Energy Community Secretariat, what is affordable for them and how it would be paid for. In addition, governments need to establish the proper fundamentals in the legislative framework for project finance and for large-scale renewable energy projects by establishing the legislation and by-laws needed to make this happen.
Since GGF has very strict environmental and social criteria, it is important that projects comply with them, but also that the sponsors care about these matters and work on them. All projects require strong upfront studies, environmental and social impact analyses and for certain technologies, other types of studies may be required too, says Walczak.
Being present in 19 countries in total, the GGF has lent more than EUR 450 million for renewable energy and energy efficiency projects since 2009. The implementation of the projects resulted in carbon emission savings over 400,000 tonnes per annum.
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