The European

Commission's

leading role

in financing

energy access

worldwide

EU Development Co-operation three priority areas:

� Build on strong political ownership for policy reforms needed to attract investments

� Increase the partner countries’ capacity

� Stimulate investments increasing access to energy with innovative co-financing schemes

EU Development Co-operation three main tools:

� Joint Declarations on Enhanced Energy Co-operation;

� EU Technical Assistance Facility (TAF) for the Sustainable Energy for All (SE4All) initiative;

� Blending Facilities including the innovative Electrification Financing Initiative – ElectriFI

Joint Declarations on enhanced energy cooperation

o thirteen Joint Declarations signed

omore Joint Declarations with African States and EU Member States, to be co-signed at the highest level during COP21

EU Technical Assistance Facility (TAF) for the SE4All initiative

� EU TAF operational for almost two years

� Covers all regions/partner countries

� Provided in response to country requests and

� Coordinated, at country level, by EU Delegations

• EUR 600 million mobilised in 2012-2013

• EUR 3.5 billion allocated for 2014-2020

• Significant leveraging investments and fostering end-users' access to a range of energy services for household, community and productive uses – a "total energy access" approach.

More than EUR 4 billion for the fight against energy poverty so far

Electrification Financing Initiative ElectriFI objectives:

� intensive mobilisation of private sector investments in increasing and/or improving access to sustainable electricity and energy services,

� encourage actions with emphasis on decentralised sustainable energy solutions for populations living principally in rural areas or underserved areas / unreliable supply areas, and

� attract additional financing

ElectriFI Support: Early Stage Development Capital (illustrative)

Convertible Grant

Subordinated Debt

Contingent Subordinated Debt

YEAR2 4 6 8 100

€

Pilot / Growth phasePipeline

enhancementPipeline boosting

Scaling-up

Cash flow for senior debt service

O&M costs

Cash flow for subordinated debt service and dividends

EC

The ElectriFI

managerT.A. Unit

Investment Committee

The Promoting Party

The Promoter

The ElectriFI manager will:

process applications;

register clients;

conduct due diligence;

support investment committee meetings;

draft contractual documents;

monitor implementation of conditions and

repayment, etc.

The TA-Unit will provide technical assistance to

the beneficiaries (developers) at all stages:

1) identification stage,

2) project proposal stage and

3) implementation stages

EC

The ElectriFI

managerT.A. Unit

Investment Committee

The Promoting Party

The Promoter

The Promoter is any developer, private or state

owned, who applies for ElectriFI support,

either on their own or via a Promoting Party. It

is the entity implementing the project and

being the beneficiary of ElectriFI funding.

The Promoting Party is any of the seven-pillar

assessed Financial Institutions, any seven-pillar

assessed member of EDFIs or any seven-pillar

assessed European Development Agency that

‘promote’ a certain transaction for ElectriFI

Step 1

Proposal submission by the

Promoter or the Promoting

Party to the ElectriFI Manager

Step 2

High-level early screening by

Investment Committee to

ensure that an application fits

the scheme and meets

development objectives

Step 3a

Mature proposals in terms of

bankability and those

submitted by a Promoter Party

will be submitted to the

ElectriFI Investment Committee

for approval

Step 3b

Selected proposals in need of

further technical assistance will

be granted due support in

order to become bankable prior

to their submission to the

ElectriFI Investment Committee

The

procedure

Challenges to be tackled

Overcome main "obstacles" for investments:o Lack of equity

o Lack of skilled developers

o Lack of scale to cover transaction cost

o Lack of affordable long term debt

o Lack of interaction between CSOs and private investors

Market imperfections to be addressed by ElectriFI:� Increase in risk capital to substitute for the lack of equity

� Increase long term debt availability

� Increase project scaling up possibilities

� Increase number of projects reaching financial close through structuring / arranging / advising

� Address affordability and social impact through partnership with CSOs

State of play and next steps

Thank you for your attention!