- EBRD has invited various stakeholders to go through its draft new energy sector strategy (ESS) which will supersede its current strategy that is close to running its course of five years
- The new draft ESS identifies four strategic areas for the bank’s focus in the next five years which includes decarbonisation, electrification and energy efficiency
- The stakeholders include civil society organizations, representatives of industry and business community who will be invited to meet EBRD representatives in six countries where the bank operates through the month of October
- Final policy will be published post consultation and approval by the EBRD Board of Directors
The European Bank for Reconstruction and Development (EBRD) is working out a new energy sector strategy (ESS) that will guide its operations over the next five years. The bank has opened up the draft ESS for public consultations with all stakeholders as civil society organizations, representatives of industry and business community, and will accept feedback till November 9, 2018.
Between 2014 and 2017, EBRD invested €6.9 billion ($8.10 billion) in 155 projects supporting the development of 4.5 GW of total generation capacity, of which renewables accounted for 3.3 GW through 67 projects. The latter took 34% of the total amount spent by the bank during this period. Solar was the dominant technology among renewables financed in 2017, led by investments in Egypt and Jordan, explains EBRD (see EBRD Tender For Egypt PV Auction Design).
Electricity generation, transmission, distribution, storage and supply covers one area of the bank’s activities under the ESS strategy, with the second activity related to hydrocarbon extraction, processing, transportation, distribution, storage and supply.
The draft ESS is focused on promoting ‘secure, affordable and sustainable energy through the transition to a market-oriented low-carbon energy sector’. Through this document, it plans to take up four strategic directions, namely:
- decarbonisation and electrification
- well-functioning energy markets
- cleaner oil and gas value chains
- energy efficient and inclusive economies
Among renewables, it counts wind and solar power technologies as playing an important role in low-carbon transition, but it also calls gas as one of the key sources of a flexible power supply.
EBRD has emphatically announced in the draft ESS that it will not support any thermal coal mining or coal-fired electricity generation capacity, or upstream oil exploration. This includes upgrades to existing existing plants. It will not back any project in upstream oil development except in rare and exceptional circumstances.
The stakeholders will be invited to meet EBRD representatives in its six countries of operations and its headquarters in London. Meetings will be held in the month of October 2018 in Istanbul, Warsaw, Almaty, London, Belgrade, Kiev and Casablanca. The schedule of these meetings is available on the bank’s website.
Post consultations, final draft of the ESS will be prepared by the bank and discussed by EBRD Board of Directors by the end of 2018. It shall then come into effect after the board grants its approval. The new strategy will replace the current one that has been in force since December 2013.