The European Commission's leading role in financing energy access worldwide

1. The European
Commission's
leading role
in financing
energy access
worldwide

2. EU Development Co-operation
three priority areas:
Build on strong political ownership for policy
reforms needed to attract investments
Increase the partner countries’ capacity
Stimulate investments increasing
access to energy with innovative co-
financing schemes

3. EU Development Co-operation
three main tools:
Joint Declarations on Enhanced Energy Co-
operation;
EU Technical Assistance Facility (TAF) for
the Sustainable Energy for All (SE4All)
initiative;
Blending Facilities including the
innovative Electrification Financing
Initiative – ElectriFI

4. Joint Declarations on enhanced
energy cooperation
o thirteen Joint Declarations signed
omore Joint Declarations with
African States and EU Member
States, to be co-signed at the
highest level during COP21

5. EU Technical Assistance Facility
(TAF) for the SE4All initiative
EU TAF operational for almost two
years
Covers all regions/partner countries
Provided in response to country
requests and
Coordinated, at country level, by EU
Delegations

6. • EUR 600 million
mobilised in 2012-2013
• EUR 3.5 billion
allocated for 2014-2020
• Significant leveraging
investments and
fostering end-users'
access to a range of
energy services for
household, community and
productive uses – a "total
energy access" approach.
More than EUR 4 billion for the fight against energy poverty so far

7. Electrification Financing Initiative
ElectriFI objectives:
intensive mobilisation of private sector
investments in increasing and/or improving
access to sustainable electricity and energy
services,
encourage actions with emphasis on
decentralised sustainable energy solutions for
populations living principally in rural areas or
underserved areas / unreliable supply areas,
and
attract additional financing

8. ElectriFI Support: Early Stage Development Capital (illustrative)
Convertible Grant
Subordinated Debt
Contingent Subordinated Debt
YEAR2 4 6 8 100
€
Pilot / Growth
phasePipeline
enhancement
Pipeline
boosting
Scaling-up
Cash flow for
senior debt service
O&M costs
Cash flow for subordinated
debt service and dividends

9. EC
The ElectriFI
manager
T.A. Unit
Investment Committee
The Promoting Party
The Promoter
The ElectriFI manager will:
process applications;
register clients;
conduct due diligence;
support investment committee meetings;
draft contractual documents;
monitor implementation of conditions and
repayment, etc.
The TA-Unit will provide technical assistance to
the beneficiaries (developers) at all stages:
1) identification stage,
2) project proposal stage and
3) implementation stages

10. EC
The ElectriFI
manager
T.A. Unit
Investment Committee
The Promoting Party
The Promoter
The Promoter is any developer, private or state
owned, who applies for ElectriFI support,
either on their own or via a Promoting Party. It
is the entity implementing the project and
being the beneficiary of ElectriFI funding.
The Promoting Party is any of the seven-pillar
assessed Financial Institutions, any seven-pillar
assessed member of EDFIs or any seven-pillar
assessed European Development Agency that
‘promote’ a certain transaction for ElectriFI

11. Step 1
Proposal submission by the
Promoter or the Promoting
Party to the ElectriFI Manager
Step 2
High-level early screening by
Investment Committee to
ensure that an application fits
the scheme and meets
development objectives
Step 3a
Mature proposals in terms of
bankability and those
submitted by a Promoter Party
will be submitted to the
ElectriFI Investment Committee
for approval
Step 3b
Selected proposals in need of
further technical assistance will
be granted due support in
order to become bankable prior
to their submission to the
ElectriFI Investment Committee
The
procedure

12. Challenges to be tackled
Overcome main "obstacles" for investments:
o Lack of equity
o Lack of skilled developers
o Lack of scale to cover transaction cost
o Lack of affordable long term debt
o Lack of interaction between CSOs and private investors
Market imperfections to be addressed by ElectriFI:
Increase in risk capital to substitute for the lack of equity
Increase long term debt availability
Increase project scaling up possibilities
Increase number of projects reaching financial close through structuring /
arranging / advising
Address affordability and social impact through partnership with CSOs

13. State of play and next steps

14. Thank you for your attention!