The Emerging Energy Latin America Fund II is aimed at enhancing the private sector as a driving force in clean technologies and renewable energy in the region.
The new 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, US-based Emerging Energy and Environment, which specializes in clean and renewable energy, clean technologies, climate change and environment and low-carbon infrastructure investments and advisory services.
IDB’s Structured and Corproate Finance Department Financial Markets Division head Daniela Carrera-Marquis said the loan 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.
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 about $150m.
