Delivering Results in the Decade of Sustainable Energy for All

Empowering Development Delivering results in the Decade of Sustainable Energy for All DG development and cooperation Table of contents 07 Powering sustainable growth and development Andris Piebalgs, EU Commissioner for Development 11 1. EU actions and tools in our energy cooperation Fernando Frutuoso de Melo, Director General of Development and Cooperation EuropeAid 15 2. Empowering rural communities • Call for Proposals on Rural Electrification 3. Fuelling inclusive growth 35 • Bridging the gap, Ongoing energy projects financed through EU blending instruments • A joint effort, Global Energy Efficiency and Renewable Energy Fund For more information on energy projects, an outline of projects funded under the ACP-EU Energy Facility and a list of non-selected projects under the latest 4. Catalysing reforms – making change happen Call for Proposals on Rural Electrification, 116 please check the following link: • Technical Assistance Facility http://ec.europa.eu/europeaid/elibrary/se4all 5. Strengthening our partners 122 • Reinforcing the bilateral and multilateral dialogue and strengthening regional cooperation • Building alliances continental dialogue to catalyse cooperation and investment 6. Energy for growth - on track for a brighter future 126 • EU energy approach in development Powering sustainable growth and development Andris Piebalgs, EU Commissioner for Development Powering sustainable growth and development Andris Piebalgs, EU Commissioner for Development Energy is fundamental to development. Developing countries • The EU support to energy infrastructure projects is reinforced over the world need energy to support their growth. They need through our blending instruments and other innovative fi- it to ensure access to clean water, clean cooking, education nance mechanisms, such as the Global Energy Efficiency and and healthcare to their people. They need it to power their Renewable Energy Fund. GEEREF has been nominated as one agricultural sectors, to create jobs and to support local busi- of the top six 2014 priority forms for providing new finance nesses. In other words, they need sustainable energy to power for clean energy at the Bloomberg New Energy Finance Sum- their sustainable development. mit in New York, in December 2013. By blending grants with loans, we expect to leverage concrete investments of up to In Europe we have made sustainable energy an increasing- EUR 8 billion. ly high priority in our development cooperation. Through our Agenda for Change we will increase the impact of our develop- • And of course we haven’t left behind rural communities. The ment resources, targeting them where they can bring real add- challenge of providing access to sustainable energy services ed value, so that people can move out of poverty. The Agenda to rural areas is being addressed through our Calls for Pro- for Change pinpoints energy as a key driver for inclusive and posals and, in future, through tailored instruments that could sustainable growth. leverage more private investments and deliver thus more benefits to those in need. And this is why we strongly support the Sustainable Energy for All (SE4ALL) objectives. At the EU SE4ALL Summit in Brussels This is just the beginning. Over the next 7 years the EU aims to in 2012, President Barroso set the ambitious target of helping allocate more than EUR 3 billion worth of grants in supporting partner countries provide EUR 500 million people with access sustainable energy, in particular in the 30 partner countries to sustainable energy services by 2030. that have chosen energy as a focal sector in their cooperation with the EU. This will leverage investments between EUR 15 Since then we took immediate actions. More than and 30 billion in loans and equity investment, thus enabling to EUR 600 million worth of grants were mobilised over the past plug the gaps in energy infrastructure and power businesses, two years (2011-2013) for specific actions that fuel growth schools, homes and hospitals. and improve livelihoods in our partner countries at different levels. In this way, the EU is catalysing action in support for energy reforms, providing more opportunities for energy investments • An enabling environment that allows for growth and private and delivering results in the Decade of SE4ALL. investments is crucial for meeting the increasing energy de- mand of our partner countries. A Technical Assistance Facility to help in fine-tuning policies is already fully operational in Sub-Saharan African countries and will be replicated in other regions. 6 Empowering Development. Delivering results in the Decade of Sustainable Energy for All Empowering Development. Delivering results in the Decade of Sustainable Energy for All 7 1 EU actions and tools in our energy cooperation Fernando Frutuoso de Melo, Director General of Development and Cooperation EuropeAid EU actions and tools in our energy cooperation Fernando Frutuoso de Melo, Director General of Development and Cooperation EuropeAid For already a decade the fight against energy poverty has been through innovative financing schemes that use EU grants and a driver of our development agenda. In 2004 we created the loans in a strategic way to make large energy infrastructure EU Energy Initiative as a collaborative platform between the projects bankable, through our blending instruments. Change European Commission and its Member States in order to join will happen only thought bilateral and multilateral dialogue forces in the fight against energy poverty. In 2007 we made and a strong regional cooperation with partner countries. it one of the cornerstones of our Joint EU-Africa Partnership and integrated energy issues in our programming. In the last This approach is being rolled out by the EU, along with its programming cycle (2007-2013), the Commission contributed Member States and international partners and the relentless more than €2 billion to energy, of which a large part was dedi- efforts of our people in Delegations across the globe, work- cated to the African continent. ing together to transform the goals into reality for the world’s energy poor. Following our Agenda for Change and the strong commitment to support the goals of the Sustainable Energy for All initia- This brochure provides an overview of how the EU is trans- tive, the EU developed a comprehensive set of actions and forming its commitments to actions. It presents the tools and rolled out more than €600 million - over the last two years financial resources deployed so far, the results achieved to alone to end energy poverty. Now we are stepping up efforts date and provides an insight on how we intend to tackle the Energy – crucial for development and this work will be further reinforced together with about energy conundrum in the coming years. 30 countries that have chosen energy as a focal sector for Addressing the lack of access to clean, reliable and affordable their bilateral cooperation with the EU in the next multi-annual I wish you a pleasant reading! energy services for billions of people has become one of the financial framework (2014-2020), in our regional and multilat- most critical development challenges, our prominent matter eral dialogues with international partners. on the international aid agenda of fight against poverty. Challenges are numerous. Developing energy markets still face Worldwide, about 1.2 billion people have no access to elec- many barriers to sustainable energy services. Lack of technical tricity and an additional billion only have access to unreliable qualification of the workforce undermines the effectiveness of electricity networks. More than 2.6 billion people rely on solid public authorities and power companies. Poor payment recov- fuels, such as traditional biomass and coal, for cooking and ery performance and non-cost-reflective tariffs can jeopardise heating. A well-performing energy system that improves ef- the financial stability of utility companies and a small cus- ficient access to modern forms of energy would strengthen the tomer base makes it difficult to assemble the necessary funds opportunities for the poorest people on the planet to escape for rapid expansion of the electricity grid. the worst impacts of poverty. Sustainable energy is central to providing opportunities for inclusive, equitable and environ- This is why we are adopting a comprehensive and long term mentally friendly economic growth, creating new job oppor- approach. We are creating an enabling environment to allow 1. Increasing the impact of EU Development Policy: an Agenda for Change, Com- munication from the Commission to the European Parliament, the Council, the tunities and contributing to poverty eradication while moving for transparency, policy and regulatory reforms, cost-recovery European Economic and Social Committee and the Committee of the Regions, towards low-carbon and resource-efficient energy models. and reinvestment. At the same time we catalyse investments October 2011 10 Empowering Development. Delivering results in the Decade of Sustainable Energy for All Empowering Development. Delivering results in the Decade of Sustainable Energy for All 11 2 Empowering rural communities Call for Proposals on Rural Electrification Empowering rural communities Call for Proposals on Rural Electrification …through the Call The factors that prevent the poorest from accessing sus- this effect, the EU increased its initial budget allocation from tainable energy services are multiple. They relate not only to EUR 55m to a total of EUR 95m. for Proposals

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