By Kari Williamson
“This financing is part of the IDB’s commitment to develop mechanisms to support long-term funding of renewable energy and clean technology projects in the region, which stimulate innovation, job creation and green economic growth,” says Daniela Carrera-Marquis, Head of the Financial Markets Division at the IDB's Structured and Corproate Finance Department (SCF).
Latin America and the Caribbean are expected to see their energy demand increase by 75% by 2030, and renewable energy could account for half of that total demand, according to Andrés Ackermann, the IDB Project Team Leader .
The fund will invest in renewable energy projects including wind, solar, small hydropower and geothermal, and in energy services companies using clean technologies, including waste-management, biomass, energy efficiency and smart-grid projects.
The fund will be managed by Stamford, Connecticut-based Emerging Energy and Environment, LLC (EEE), which specialises in clean and renewable energy, clean technologies, climate change and environment and low-carbon infrastructure investments and advisory services.
The IDB loan is expected to be supplemented by contributions from equity investors to include International Finance Institutions and other local and international capital sources.
The eventual size of the Emerging Energy Latin America Fund II is targeted at approximately US$150m.