Start-up financing for renewable energy and energy efficiency projects in developing countries
As of: August 2020
Objective and activities
The project provided initial funding for the development of local project companies that undertake renewable energy projects. These projects improved the supply of climate-friendly energy in developing and emerging economies, thereby protecting the climate. The project set up financing mechanisms that make longer-term funding available to local project companies.
State of implementation/results
- Project completed
- As a first project company DEG financed SoWiTec Operation GmbH. SoWiTec is utilising the funds to finance the initial phases of local project companies in Latin America.
- The initial financing in Brazil, Chile, Peru, Mexico, Uruguay and Argentina led to the development of 13 local project companies that undertake preparing measures, like planning and approval. documentation, feasibility studies, and environment and social studies for renewable energy projects.
- The local project companies laid the foundations for climate friendly investments which are balanced with a capacity of 2000 MW on renewable energies and in case of implementation, would reduce emissions of 3,6 million tonnes of CO2eq every year.
- With the help of quasi-equity loans, three projects of SoWiTec are near their realization phase of wind parcs in Mexico,. German technology standards are used for the implementation.