IFC Estimates it Can Help Mobilize an Initial $100 Million in Kenya's
Sustainable Energy Market
TopicsNews, Business, Environmental Impact
September 24, 2010 | By Nikki Chandler
IFC, a member of the World Bank Group, said it can help mobilize an
estimated $100 million for sustainable energy projects in Kenya over
the next five years, representing a significant opportunity for the
private sector to support initiatives that will increase access to
electricity while reducing carbon emissions. Kenya's government has
identified an immediate market of renewable energy projects worth at
least $2.5 billion open to private sector investment.
IFC's Climate Change Investment Program in Africa (CIPA) is providing
advisory services and investments to financial institutions in Kenya,
helping them build a market for sustainable and renewable energy
projects. CIPA is also focusing on capacity building and raising
awareness around sustainable energy investments.
Paul Kirai, IFC CIPA program manager for Sub-Saharan Africa, said,
"IFC's work in sustainable energy finance around the world has proven
how financial mechanisms can be used to unlock millions of dollars
worth of investments that contribute to increasing energy efficiency
and access to energy. Over time, this will allow more people to access
clean energy, and will help businesses reduce energy costs, increase
competitiveness, and cut greenhouse gas emissions.ï¿½
An IFC commissioned study identified a number of sectors in Kenya that
could immediately benefit from sustainable and renewable energy
projects, including: food and beverages; agribusiness; hotels; cement,
healthcare (hospitals); and infrastructure (commercial and government
buildings). The study analyzed market barriers to sustainable energy
finance in Kenya and suggests ways to overcome them. It focused on the
demand for and supply of suitable financing mechanisms, market
development, and the policy environment.
According to the IFC study, a lack of appropriate finance options and
weak market integration are the two most serious barriers slowing
growth in Kenya's sustainable energy market.
IFC to Lend $100 Million for Kenya Energy Projects September 24, 2010,
6:21 AM EDT
By Eric Ombok
(Updates with comment in third paragraph.)
Sept. 24 (Bloomberg) -- The International Finance Corp., a branch of
the World Bank, plans to lend $100 million for sustainable energy
projects in Kenya, program manager Paul Kirai said.
The funds will be lent over five years, he told reporters in the
capital, Nairobi, today. The IFC is also in talks with 14 local banks
to help them finance the projects, he said.
ï¿½This will allow more people to access clean energy and will help
businesses to reduce energy costs, increase competitiveness and cut
greenhouse gas emissions,ï¿½ Kirai said.
The government has identified renewable energy projects worth $2.5
billion, he said. Kenya has a geothermal potential of 7,000 megawatts
and is targeting 5,000 megawatts of geothermal power capacity by 2030,
Energy Minister Kiraitu Murungi said March 30.
--Editors: Philip Sanders, Ben Holland
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