Leveraging Private Investment to Clean Energy Projects: A Guidance Note for Norwegian Development Assistance

FORWORD

This report is meant to serve three purposes; i) serve as a basis for an ongoing dialogue with stakeholders regarding the potential implementation by Norway of new clean energy Public Financing Mechanisms (PFMs), ii) serve as a documentation of the process, approach and findings of the team in arriving at a set of proposals regarding the future of Norwegian efforts to mobilize private investment in clean energy in developing countries, and ii) serve as guidance to Norad and MFA staff in navigating the complexities of supporting PPPs in clean energy.

The primary author of the report is Ryan Anderson, Energy Advisor, Norad. Additionally, Econ Pöyry has provided assistance in reviewing the literature, carrying out analysis and conducting interviews. The Energy, Water and Infrastructure (EVI) department at Norad has also provided key inputs along the way.

The report is meant to be operational and up-to-date, rather than fully comprehensive in its coverage of literature and/or PFMs or academic. The authors have relied on key literature and interviews and have not carried out any full evaluation of any of the proposed PFMs. Instead, the authors have listened to investors and embassy personnel regarding what is needed and what is realistic. Norad hereby submits its proposals for public discussion and debate. The authors remain open to constructive debate regarding its proposals and hopes to stimulate engagement whereby the effectiveness of Norwegian assistance to clean energy is ultimately improved. We of course have the ambition that the enclosed proposals and subsequent dialogue makes a contribution to this end.