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Global Energy Efficiency and Renewable Energy Fund (GEEREF): Lessons Learned after Three Years of Investing in New

RE Funds in Developing Countries


Dr. Tao Ren Investment Officer, EIB Raising Funds and Matching Financing with Projects Asian Clean Energy Forum, 4-8 June 2012

European Investment Bank (EIB): EUs Long-term leading bank promoting European policies and priorities

EUR 1.2 bn for Asia and Latin America in 2011

Climate Action Focus at EIB


EUR 18.0 bn in 2011 or 31% of the total lending Climate action embedded in all lending activities Climate change lending is a key EIB objective: - Mitigation (energy efficiency, renewable energy investments, sustainable transport) - Adaptation projects - RD&I and technology transfer (support to ecoinnovation projects) - Others, i.e. water/waste, carbon and forestry Climate Action Operations: Christopher Knowles, c.knowles@eib.org Climate Action Policy & Safeguards: Peter Carter, p.carter@eib.org
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Luxembourg domiciled, SICAV-SIF Fund of Funds (indirect investment) Registered as ODA EUR 108m from the EU, Germany and Norway

Public Private Partnership (PPP) as a goal


Operational since January 2009

Advised by EIB Group

GEEREF Strategy

Targeting at ~8 Renewable Energy and Energy Efficiency Funds


Africa, Asia and Latin America focused Project Finance (Hydro/Solar, EE, etc.) Small/medium size projects People, Planet and Profit

GEEREF Status
Funds signed

REAF: India and South Asia focussed


Evolution One: Southern Africa

DI Frontier Market: East Africa


CTLAF II: Latin America Fund pipeline: Ukraine (approved), Southeast Asia (approved), Latin America (approved) and Asian/Africa/LDCs (under DD) Hundreds of fund proposals screened Disbursed to 12 beneficiary projects Fundraising: EUR ~100m to be raised in 2012-2013
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Lessons learned (1/3)

For first-time funds and fund managers:

GEEREF as an enabler (e.g. the first RE funds in Sub-Saharan and Ukraine)


Catalytic role - crowding-in private capital (~25-50% in the current portfolio funds) High leverage impact:

Factor of 1:50 at the project level so far

Lessons learned (2/3)


RE & EE infra funds and projects Young but growing asset class

Opportunities emerging in regions beyond just BASIC countries: attractive but much work is needed
Credibility and relationships with providers of debt and equipment established through first transactions Good teams (with equity cash) deliver even in supposedly competitive regions The need for suitable co-investors: strong limitation
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Lessons learned (3/3)

Patience, patience and more patience GEEREFs first close in 2008 GEEREFs first funds in 2009 GEEREFs first beneficiary projects in 2010 A funds first KWh produced 1.5-2.0 years after closing

More capacity building and demonstration needed

Thank you!

For more information, please contact:


Cyrille Arnould, Head of GEEREF E-mail: c.arnould@eib.org - Tel: +352 4379 86664 Tao Ren, Investment Officer GEEREF E-mail: t.ren@eib.org - Tel: +352 4379 85207 Website: www.geeref.eu

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Disclaimer
This document comprises the written materials/slides for a presentation concerning GEEREF. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or any other securities in GEEREF or in any other entity nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment in relation thereto. The information contained in this material may not be suitable for all investors. This material does not provide individually tailored investment advice or offer tax, regulatory, accounting or legal advice. Prior to entering into any potential transaction, recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risk and merits, as well as the legal, tax regulatory and accounting characteristics and consequences of a transaction. You should not place undue reliance on forward-looking documents. No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. No representation and warranty, expressed or implied, is given by or on behalf of GEEREF. Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or possessions or any U.S person (as defined in Rule 902 of Regulation S). The distribution of this document in other jurisdiction may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restriction. By attending this presentation you will be taken to have represented, warranted and undertaken that you have read and agree to be bound by and comply with the content of this notice.

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