Member's Documents
Mid-Size Sustainable Energy Financing Facility
Published by: European Bank for Reconstruction and Development
The purpose of the MidSize Sustainable Energy Financing Facility (MidSEFF) was to help finance mid-size sustainable energy projects of €10-40 million in Turkey through on-lending by commercial banks. Four participating banks on-lent nearly €300 million to 27 sustainable energy projects in renewable energy and energy efficiency.
Key findings include:
- MidSEFF had a significant effect on the Turkish renewables market.
- More time and other specific products were needed for further market diversification of renewable energy technologies.
- Participating bank experience in project finance was important to subproject success.
- There is currently a limited market for Local Currency Lending in sustainable energy.
- Inclusion of energy efficiency projects in MidSEFF was of limited value.
- Incentives were not needed for MidSEFF to succeed.
- Brand is important.
- An outreach and marketing project component could promote uptake and diversification.
The recommendations include:
- Given comparable circumstances, avoid allocating funds for direct risk participation.
- Introduce market/industry norms, benchmarks or standards for energy production and/or carbon reduction.
- Select energy efficiency projects for mid-size facilities such as MidSEFF with a clear and evident demonstration effect.
- Limit hydropower and wind projects, and when hydro and wind projects are undertaken, accompany them with enhanced environmental and social standards.
- Feature solar licensing as a focus of future policy dialogue.
- Focus carbon market policy dialogue on GHG management and Measuring, Reporting and Verifying.
