Investing in clean energy in developing countries

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Investing in clean energy in developing countries

• Bas Rekvelt
• UNFCCC workshop, Bonn 2005

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Introduction

• Triodos Bank ? 25 years sustainable banking
• leading European Green Bank
• 2bn. assets under management
• 250m. in renewable energy
• International Fund Management
• access to financial services in developing
  countries
• microfinance ? three funds 60m.
• trade finance ? organic and fair trade
• renewable energy ? SMEs and projects
• www.triodos.com

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Triodos Renewable Energy for Development Fund

GOAL Increase access to clean energy in
developing countries HOW Initiate, structure and
invest in local clean energy funds!
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Needs

• No ground breaking innovation but just provide
• what is needed NOW in many developing
• countries
• capital for hundreds small sized, feasible
  projects
• finance for energy efficiency
• risk capital for SMEs
• end user finance

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Action is the innovation!

• Leveraging on our experience
• small and simple
• grounded in the local market place
• realistic return expectations
• long term investment horizon
• broad definition of fund
• bundling of projects
• use existing financial infrastructure
• financially sustainable
• from renewable to clean

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What is needed to act?(in an ideal world)

• investment models for smaller projects
• modify terms and conditions
• greater assumption of various types of risks
• local expertise
• private investors
• public capital with a risk return
• seed capital and business support
• supportive governments

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How do we act?

• dont wait for a perfect world
• go where market potential is abundant
• stimulate and assist our local network to start
  clean energy funds
• provide pre-investment capital
• establish a diversified equity base
• make early investments
• accept a long term investment horizon
• active governance

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What is new?

• small funds (10m.- 30m.)
• realistic return expectations 7-15
• financial closure of many projects
• create track record for private investors

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For more information

• Bas Rekvelt
• Fund Manager of Triodos Renewable Energy for
• Development Fund
• E-mail bas.rekvelt_at_triodos.nl