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SUNREF Palestine : developing a market for green investments
Project
This project is carried out with the support of the European Union
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Project start date
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Status
Ongoing
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Project end date
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Project duration
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4 ans
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AFD financing amount
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33 000 000 €
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Country and region
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Location
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Palestinian Territories
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Partners
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European Union
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Beneficiaries
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Palestinian Energy and Natural Resources Authority (PENRA), Cairo Amman Bank, Bank of Palestine
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Type of beneficiary
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State
This project is carried out with the support of the European Union
The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.
As a solution to promote green investments in the private sector, the French Development Agency proposes its SUNREF program. Thanks to a credit line and a European Union grant, SUNREF will contribute to improving the economic context for the development of green investments.
Context
This project is implemented in a context of economic fragility and energy constraint as the demand for energy keeps growing. Palestine’s energy dependency towards Israel and its exposure to climate change make it urgent to mainstream new ways of producing and consuming energy and to build renewable energy capacities.
In order to meet the demand and support a steady economic growth, Palestine is in need of reliable, low-cost and sustainable energy sources.
Description
The project is built on 3 axes co-financed by AFD (€ 25 million) and the European Union (€ 8 million):
- A credit facility for 2 partner banks (€ 25 million)
This credit line will enable the banks to grant loans to project developers (companies or and/or individuals) willing to invest in the sector of renewable energies and energy efficiency.
- Investment premiums (€ 5 million)
€ 5 million euros will be allocated to the payment of investment premiums for project developers. Their amount will vary from 15% to 30% of the total loan. The objective of such a mechanism is to incentivize these investments boost the sector.
- Technical Assistance (€ 3 million)
The technical assistance is set up for 4 years by PENRA (acting as project owner) and an external consultant and aims at facilitating the identification and assessment of projects as well as strengthening the capacities of the different stakeholders.
Impacts
- Promote energy efficiency measures and the use of renewable energies in the private sector and the retail segment
- Support the role of the private sector in structuring and financing green projects
- Strengthen the capacity of PENRA