SCALING UP RENEWABLE ENERGY Photo: Sarah Fretwell/USAID

USAID FY2014 Energy Budgets Energy Reconstruction $372M

Outline Clean Energy Trends Why does Scaling Up Clean Energy Matter Clean Energy Building Blocks USAID’s approach Photo: Sarah Fretwell/USAID

Developing Countries will build nearly three times as much new energy capacity as developed nations, at 7640GW - around half will be renewables over the next 25 years. Bloomberg New Energy Finance New Energy Outlook 2015 Photo: Sarah Fretwell/USAID

Why does scaling RE matter? Transition to low carbon energy systems Renewable Energy is approaching the least-cost solution: – In US (second half 2013/first half 2014) – Source: Bloomberg New Energy Finance US PPA report Coal: $24/MWh Wind: $36/MWh Solar PV: $56/MWh Gas: $60/MWh Renewable Energy can provide energy security, energy access Wind and Solar will be the cheapest source of new electricity supply, and in some countries will start to outcompete existing fossil fuel plants. Bloomberg New Energy Finance Photo: Sarah Fretwell/USAID

USAID’s Scaling Up RE Supporting the addition of tens of thousands of MW of RE Increasing the % of renewables in total installed capacity and the % of renewables in total electricity delivered Establishing the building blocks: – Strategic Energy Planning – Smart Incentives – Finance – Renewable Energy Zones (REZ) – Grid Integration – Competitive Procurement

Strategic Energy Planning Examples Low Emission Development Strategies Nationally Determined Contributions Renewable Energy Targets Power Development Plans “Mexico is committed to reduce unconditionally 25% of its Greenhouse Gases and Short Lived Climate Pollutants emissions (below BAU) for the year 2030.” – Mexico INDC “Mexico is committed to reduce unconditionally 25% of its Greenhouse Gases and Short Lived Climate Pollutants emissions (below BAU) for the year 2030.” – Mexico INDC India Solar Mission 22GW by 2022 Set Goal Policy and Actions Allocate Resources & Implement

IRP: A comprehensive decision support tool for meeting the objective of providing reliable and least-cost electric service to all customers while addressing the substantial inherent risks and uncertainties.

Smart Renewable Energy Incentives 9

Renewable Energy Finance Private Instruments Risk reductions Standardized contracts New business models Public Instruments Loan guarantees Low-interest loans Accelerated depreciation Approach: Increase Access to Finance Lower Cost of Finance Approach: Increase Access to Finance Lower Cost of Finance In 2015, clean energy attracted a record $329 Billion in global investment, nearly six times its 2004 total

Bank Indonesia (BI) – Green Lending Model for Mini- Hydropower BI – International research on investment incentives BI & MoEnvironment training on the environment and social risk assessment Clean Energy Handbook for Banks and FIs Direct support to 5 conventional banks, 2 Syariah banks, and 5 non-bank financial institutions. Transition support to Financial Services Authority/OJK Capacity Building for Financial Institutions

Locate in areas of best resources Develop common infrastructure Engage Private Sector Renewable Energy Zones

Opportunities Jamaica Pakistan Afghanistan Kenya South Africa Mexico Colombia India Vietnam Indonesia Philippines Ghana Bangladesh Kazakhstan Nepal