The debt and equity financing framework is intended to help the development of renewable energy generation capacity by private companies in the Southern and Eastern Mediterranean (SEMED) region.
Of the total package, Climate Investment Funds’ Clean Technology Fund (CTF) will invest up to $35m while the Global Environment Facility (GEF) will finance up to $15m, as per the framework.
The announcement comes on heels of new recent reforms made by the four countries, allowing the private power producers to directly sell electricity to consumers.
EBRD expects the program to support a number of new business models, from direct agreements between large developers and corporate consumers to small scale generation in communities.
EBRD Power and Energy director Nandita Parshad said: "For the first time in this region the private sector is now able to produce and sell clean renewable energy on a commercial basis competing head to head with gas and oil-fired generation.
"We are grateful to our partners in this program, the CTF and GEF funds and the Union for the Mediterranean for their support in catalyzing this development."
The first project under consideration as part of the new program is expected to be the 120MW Khalladi wind farm located near Tangiers in Morocco. The deal for the package is planned in the near future.
CTF program manager Mafalda Duarte said: "We hope that this program and the types of projects it finances will serve as a blueprint for other regions seeking to promote private renewable energy investments."
GEF programs director Gustavo Fonseca said: "Once these projects are built, they could result in direct CO2 reductions of at least 700,000 tons per year and much more from the market changes we expect the program will promote."
Image: The new EBRD program is expected to allow private sector to develop renewable power projects. Photo: courtesy of European Bank for Reconstruction and Development.
