Blended Finance in Clean Energy: Experiences and Opportunities Annexes

The document outlines a methodology for identifying high-impact clean energy markets in developing economies based on private sector attractiveness, energy access, and climate relevance. It identifies Tier 1 countries—including India, South Africa, Kenya, and Rwanda—and analyzes their specific investment barriers, such as off-taker risk in India and currency volatility in South Africa. Additionally, it provides case studies on blended finance structures, ranging from project-level interventions like the Lake Turkana Wind Farm to fund-of-funds like GEEREF, illustrating how concessional capital and guarantees are used to leverage private investment.

• The methodology for identifying high-impact investment opportunities focused on 140 developing economies, selecting those that are not investment grade but are attractive for private investment and have at least 500 MW of projected untapped renewable capacity.
• Tier 1 countries identified as having the highest aggregate scores for energy access and climate relevance include India, South Africa, Kenya, Rwanda, Uganda, Mozambique, Cambodia, and Mongolia.
• In India, a primary investment barrier is off-taker risk, as distribution utilities experienced an average aggregated technical and commercial loss of 25% in 2014-15, and most state-owned utilities are operating at a loss.
• South Africa's clean energy investment dropped from $4bn in 2015 to under $1bn in 2016, largely due to delayed auctions and the national utility Eskom's refusal to sign new PPAs without greater control over pricing.
• Kenya is highlighted as a strong market for distributed energy, with 2 million off-grid solar systems sold in 2015-2016 and the 310MW Lake Turkana wind farm providing 15% of the country's generation capacity.
• The China Utility-focused Energy Efficiency Program (CHUEE) used a public guarantee covering 75% of losses to encourage commercial banks to lend to SMEs for energy efficiency, achieving an estimated leverage of 45-50x.
• The Global Energy Efficiency and Renewable Energy Fund (GEEREF) operates as a fund-of-funds with a 1:1 public/private blending ratio, using a risk waterfall structure to protect public investors while offering upside profits to private investors.
• In Mozambique, investment is hindered by high political and administrative barriers, high inflation, and a lack of standardized PPAs, resulting in only $2m of renewable energy investment from 2011-15.
• Uganda's clean energy growth is constrained by grid capacity, though it has a liberalized energy market where IPPs make up 58% of generation.

APA

Climate Policy Initiative (2018). Blended Finance in Clean Energy: Experiences and Opportunities Annexes. https://www.climatepolicyinitiative.org/wp-content/uploads/2018/01/BlendedFinanceReport_Annexes.pdf

Chicago

Climate Policy Initiative. Blended Finance in Clean Energy: Experiences and Opportunities Annexes. 2018. https://www.climatepolicyinitiative.org/wp-content/uploads/2018/01/BlendedFinanceReport_Annexes.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Blended Finance in Clean Energy: Experiences and Opportunities Annexes |date=January 2018 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2018/01/BlendedFinanceReport_Annexes.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2018blended, author = {{Climate Policy Initiative}}, title = {{Blended Finance in Clean Energy: Experiences and Opportunities Annexes}}, institution = {Climate Policy Initiative}, year = {2018}, month = jan, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2018/01/BlendedFinanceReport_Annexes.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }