EBRD says renewables are now cheapest energy source
- The EBRD’s message to governments: renewables are now cheapest source of energy
- The Bank’s renewable energy investments top €6 billion
- The EBRD supports FT Climate Finance Summit in London
The EBRD is urging a step change in levels of investment in renewable sources of energy. Competitive pressures have led to a significant reduction so that renewables are often the cheapest sources of energy.
Harry Boyd-Carpenter, EBRD Director, Head of Power and Energy Utilities, will say at the FT Climate Finance Summit in London on 9 October: “The EBRD believes that two key steps to reduce greenhouse gas emissions are to increase the use of electricity and to produce most of this electricity from renewable sources. The Bank believes that renewable energy markets in many of the countries where it invests have reached a stage where the introduction of competitive auctions will lead both to a steep drop in electricity prices and an increase in investment.”
This has already happened in Egypt and Jordan, following progressive changes in policy. In Jordan, for example, the introduction of competitive practices, with the assistance of the EBRD and other international partners, has delivered an 85 per cent price reduction to less than 2.5 US cents per kWh, which is cheaper than generating electricity from gas.
The FT Climate Summit is dedicated to aligning policy and practice of investing with the aim of limiting global warming to 2 degrees Celsius. The event is taking place on 9 October 2018, shortly after the UN Intergovernmental Panel on Climate Change (IPCC) issues its key report “Global Warming of 1.5°C”.
EBRD speakers at the summit will outline the Bank’s vision for scaling up climate finance in the 38 emerging markets where it invests, with a focus on renewable energy investment.
Two EBRD representatives will participate in the FT Climate Summit’s panels: Harry Boyd-Carpenter, EBRD Director, Head of Power and Energy Utilities; and Xeniya Rogan, Principal Banker for the energy sector in Central Asia.
They will highlight the need to deliver the necessary regulatory reforms and network infrastructure to accommodate a renewables-driven electricity sector that has doubled in size, as well as other investments needed to complement intermittent renewables. They will also showcase the practical guidelines for implementing renewable auctions that the EBRD has developed together with the Energy Community Secretariat.
The EBRD is a leading climate finance provider in its regions. The Bank invests and mobilises financing and technical support from the private sector, donors and multilateral development institutions to help our 38 emerging market economies become greener and more efficient.
The EBRD has committed €26 billion to Green Economy Transition projects since 2006, with €6.3 billion invested in renewable energy, both directly and through credit lines; and 10,161 MW of total renewable capacity installed.