EBRD’s Renewable Energy Programme Fuels Transition from Fossil Fuels to Clean Power

EBRD’s Renewable Energy Programme Fuels Transition from Fossil Fuels to Clean Power

(IN BRIEF) The power sector is undergoing a vital transformation to meet climate goals by shifting towards carbon-free electricity production. The European Bank for Reconstruction and Development (EBRD) is actively contributing to this transition through its Renewable Energy Programme, particularly by supporting competitive renewable energy auctions (RE auctions) in 15 countries. These auctions have facilitated over 1,500 MW of renewable energy capacity in several nations, with plans for an additional 5,000 MW in countries like Azerbaijan, Bulgaria, Moldova, Montenegro, and Romania. Recently, the EBRD successfully oversaw an innovative project combining 200 MW of wind capacity with a 100 MW/100 MWh battery energy storage system in Uzbekistan. Beyond auctions, the EBRD works to enhance the regulatory framework, enabling future auctions and sustainability projects, thereby attracting investments for a sustainable energy future.

(PRESS RELEASE) LONDON, 1-Dec-2023— /EuropaWire/ — The power sector is changing. And changing in a way that is much needed.

There is a broad consensus that meeting climate goals requires us to electrify as much of the economy as possible, while ensuring that the production of this electricity is carbon-free. This means supplying the world with more and more power: by the middle of the century we are likely to need at least three times more power than we consume today. And it means investing in vast amounts of new wind and solar capacity.

In other words, in the next 25 years we will need to have shifted from a power sector that has been (and continues to be) overwhelmingly reliant on fossil fuels to one in which there are no (unabated) fossil fuels.

This is not just change; this is a transformation.

Luckily, this transformation is already under way, and the EBRD is helping to deliver it. We do this through our financing and policy work. The EBRD’s Renewable Energy Programme is a key part of this, under which we support policymakers to design and deliver competitive bidding processes for renewable energy – so-called RE auctions.

We are currently working in 15 countries, and we have already directly supported auctions for over 1,500 MW of capacity in Albania, Egypt, Kazakhstan, Serbia and Uzbekistan.  And there is much more to come: we have an additional 5,000 MW in the pipeline in these countries and others such as Azerbaijan, Bulgaria, Moldova, Montenegro and Romania. The most recent example of our work was the opening of bids in the week before COP28 in Uzbekistan, delivering a highly competitive price for an innovative project combining 200 MW of wind capacity with a 100 MW/100 MWh battery energy storage system.  Overall, in 2023, we have seen three of our auctions reach the selection of bidders stage for an overall capacity of around 1,000 MW. In addition to the auction in Uzbekistan, this includes the first onshore wind auction in Albania and the first renewables auction in Serbia.

But our work goes beyond just auctions. While these competitive processes help to mobilise private sector financing, they are nothing without the supporting regulatory framework. We encourage and help authorities to develop the necessary regulatory reforms so that future auctions, as well as projects using other structures, such as corporate power purchase agreements, can be implemented effectively.

This is the most crucial part of our work. There is no shortage of capital looking for sustainability investments; what is often missing is the pipeline of projects and the enabling conditions that unlock investment. And that is where we target our support.

Media Contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD