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EU introduces new electrification financing initiative
The European Union (EU) introduced a new electrification financing initiative to help developing countries access sustainable energy services
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he European Union (EU) introduced a new electrification financing initiative to help developing countries access sustainable energy services.
The Electrification Financing Initiative, or ElectriFI, is an innovative instrument through which EU grants will complement private financing, bridging potential financial gaps in order to make a project bankable.
The European Commissioner for Development, Andris Piebalgs, said the instrument would provide the security investors and banks were expecting in order to boost investments.
'If investments are successful, the grants will be converted into loans, at concessional rates, and the EU will be 'reimbursed'. We will then be able to reinvest our grants in new projects, allowing more and more people to get access to electricity services,' Piebalgs said in a statement made available to The Jakarta Post on Thursday.
Piebalgs further said: 'ElectriFI is more than a financing proposal, in that it puts forward a business model to leverage more private investments and involve more key stakeholders in all areas of expertise on a global level'.
ElectriFI was launched during the Sustainable Energy for All Committee meeting in Brussels, which kicked off on Thursday.
During the meeting, Piebalgs reconfirmed the EU as the biggest supporter of the SE4ALL initiative and reminded all of their commitment to help developing countries provide access to sustainable energy services for 500 million people by 2030.
The commissioner said strong political ownership ensuring the necessary implementation capacity was in place, delivering financing and ensuring rapid results on the ground were three key conditions to achieve that all-important enabling environment for investments. (ebf)(++++)
