Wednesday 17 April 2013

$50m energy efficiency fund for Latin America

Companies in Latin America and the Caribbean looking to invest in renewable and energy efficiency projects can apply for loans, thanks to a $50 million (£32.8m) fund.

The Inter-American Development Bank (IDB) provided the cash for the Energy Efficiency Finance Facility, which supports firms with small-scale loans for projects that will cut energy costs and greenhouse gas emissions. The facility will focus on projects with potential for high financial returns, including smart-grid, advanced lighting and solar or biomass power.

Kelle Bevine, Head of the Strategy Management Unit in the Bank's Structured and Corporate Finance Department said: "This is a new market in which small loans can produce significant returns. Amid increasing demand for energy in the region, we can help reduce consumption by making investments in low carbon technologies more financially viable."

The Nordic Development Fund, based in Helsinki, will provide €7 million (£6m) to partially guarantee the loans and another €1 million (£0.86m) in grants to helps companies identify and study possible projects, including installing energy efficient lighting and solar panels.