Renewable Energy Scale-Up Facility ANNEXES

The document outlines the financial and environmental modeling for a proposed USD 100 million equity fund designed to scale up renewable energy projects. It details the use of an option mechanism to make early-stage development more attractive to investors, projecting that public finance could mobilize significant private capital and abate substantial CO2 emissions. It also compares RESF to various other clean energy funds and technical assistance initiatives across Africa, Asia, and Latin America.

• The RESF fund is modeled as a USD 100 million equity fund with a 12-year duration and an 8-year investment period. It assumes USD 99 million is invested by limited partners (LPs) and USD 1 million by the general partner (GP), with an 8% hurdle rate and a 80-20 split on secondary payments between LPs and GP.
• The proposed option structure is designed to increase investor returns compared to investing at financial closure. In the central case, expected net equity IRR is 17.5% at the fund level and 15% at the investor level after fees, compared to 14% at the fund level and 12.75% at the investor level for those initiating investment at financial closure.
• Public finance is envisioned in two roles: as a provider of equity capital (proposed at 20% or USD 20 million) to increase return certainty, and as a purchaser of options via a convertible grant formula. The latter is estimated to require between USD 4.7 and 7 million, or USD 0.3-2.7 million net of reimbursements.
• The pilot phase is expected to use USD 24.5-26.5 million of public finance to mobilize USD 80 million in private sector commitments, achieving a 1:2.7 public-private leverage. At the project level, this is expected to mobilize USD 50-138 million in additional equity and USD 250-640 million in loans, resulting in a final leverage of 1:15 to 1:30.
• RESF aims to contribute to the development of 370 MW (range 230-620 MW) of onshore wind and solar PV projects across six pilot countries. These projects are estimated to generate approximately 30 million MWh (range 16.5-44.5 million MWh) over 25-year asset lifetimes.
• Based on grid emissions factors in Brazil, Colombia, and Peru, the projects are estimated to avoid or abate 500,000 tCO2 (range 265-725 ktCO2) annually, or 12.5 million tCO2e (range 6.5-18 million) over asset lifetimes. The cost of public sector investment for this abatement is estimated at USD 2 per ton of CO2e (range 1.5-3.7).

APA

Climate Policy Initiative (2017). Renewable Energy Scale-Up Facility ANNEXES. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Renewable-Energy-Scale-Up-Facility-RESF_Annex.pdf

Chicago

Climate Policy Initiative. Renewable Energy Scale-Up Facility ANNEXES. 2017. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Renewable-Energy-Scale-Up-Facility-RESF_Annex.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Renewable Energy Scale-Up Facility ANNEXES |date=August 2017 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Renewable-Energy-Scale-Up-Facility-RESF_Annex.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2017renewable, author = {{Climate Policy Initiative}}, title = {{Renewable Energy Scale-Up Facility ANNEXES}}, institution = {Climate Policy Initiative}, year = {2017}, month = aug, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Renewable-Energy-Scale-Up-Facility-RESF_Annex.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }