Financing Renewable Energy Projects to provide electricity

access across the nation in Low Income Countries

Issues Electricity access is not available across

the country especially in rural area.People has too low income to pay for

the electricity.Lack of electricity infrastructure in many

areas.The existing electrical power is not

enough to supply the demand.The country does not have financing

capability to build the electricity infrastructure and new power plants.

There is no regulation or policy that support private sectors participation in providing electrical power to the country which make investments is uncertain and risky.

Source of picture : http://www.eurasia.undp.org/content/rbec/en/home/sustainable-development-goals/goal-7-affordable-and-clean-energy.html

Why Renewable EnergyInline with United Nation SDG no 7, it

is affordable, clean and transform the world with modern energy sources.

Reduce CO2 emissions and prevent climate change

Builds economy and job market. New opportunities in service industries and supply chain market. Increasing income and transform lives.

Energy security (Provide enough energy source across the nation in the long run, it is naturally replenish)

(reference : http://www.un.org/sustainabledevelopment/energy/)

The challenges Lack of Infrastructure and inefficient Power plants

& Transmission Grid Need Government involvement in creating energy

policy to attract investment of private sectors Need Local Government involvement in reinforcing

regulation of the electricity use in community and promoting public awareness of the available renewable power resource .

The Increasing demand of skill workers and engineers in service industry to support the renewable energy systems installation service and repair means that educational sectors need to transform the curriculum to produce the skill workers and to align with the National Electricity Plan.

Government shall provide financial assist and guarantee to attract investment from private sectors. Government need a long term financial plan that has to be free from political economy situation and stable to pay back the concessional loan.

The objectives & benefit Private sectors :

Guarantee return of investment with

possible profit.

Minimal Risk. (Enforced by

Government regulations)

New market in renewable energy

business.

Exposed to new technology which

create opportunities in the future

(diversification).

The objectives & benefitPublic sectors :

Improvement of life quality

(health, education and

increasing income).

Having good governance policy

& ractices and efficient

expenditures in energy cost.

Increase awareness of green

energy resources and reduce

pollution to preserve climate.

The objectives & benefit Country :

Lowering poverty & sharing prosperity which is inline with SDG 1 (No Poverty)

Increase of Tax to GDP ratio, Social Economy and Political stability which is inline with SDG 10 (Reduce Inequalities)

Achieve energy security for the future with clean and sustainable modern rnergy which is inline with SDG 12 (responsible consumption and production) and SDG 13 (Climate action)

Growth in social and economy (develop country status to MIC)

Example case (Myanmar) In 2016 only 3.7 millions of

households (34%) has access to electricity in Myanmar

Electricity demands increases about 300MW (15%) yearly in Myanmar

The country is reach with hydropower resources as the source of renewable and clean energy (produce 58.85% of the total electricity)

The country use National budget, International loans and cooperation with local and foreign companies as strategic ways for power generation

Reference : Ministry of Electricity and Energy. 17th May, 2016. Hilton Hotel, Nay Pyi Taw. Current Status & Opportunities for. Myanmar Electricity & Energy Sector

The investment opportunities Build new power plants to increase the

capacity up to the demand.Build the infrastructures of electrical

transmission and grid system to extend the coverage of the existing.

Build off grid system for the community who lives in location that are difficult or not economical to get electricity from the existing grid.

Build supply chain market to provide components and equipments to support the renewable energy projects.

Build schools or training centers to create skill workers in renewable energy installation, service and repair industries

The planningInitial Stages : Create a project to

get the accurate data of : country demographic, number of households, existing electrical power capacity, required additional power capacity, renewable energy sources that is available in the country, budgetary financial requirement to build the renewable energy system and create a National Plan to support the project in achieving sustainable result.

The planning Preparation Stage :

Government propose the National Plan to World Bank Group to get possible financing by the IDA and/or other financial institutions, also to get assistance for the project preparation, project monitoring and project evaluation to make sure that the result is sustainable and in line with the world bank twin goals and the SDGs (goal 1, 7, 10, 12 and 13).

Source of picture : http://www.worldbank.org/content/dam/photos/780x439/2016/feb-8/GTF-panel-at-Africa-Energy-Indaba-2016.png

The Implementation IDA provide long term

concessional loan to the ILC country to finance the project. IDA to do project preparation, project monitoring and project evaluation.

Government invites private sectors to invest in the renewable energy projects by giving a clear regulation and healthy business environment to make sure that the return and risk factor is favourable. Divide the big project into smaller ones that can be financed with short term loan from banks to attract interest of domestic private sectors and participate in the National plan.

Sorce of picture : http://www.worldbank.org/en/about/annual-report/roles-resources

The ImplementationA new electrical policy for renewable energy to be used as the

primary energy is announced and implemented. Related Government Ministries and institutions to support the policy by reinforcing rules and regulations in the communities across the country.

The SDG 7 to provide affordable and clean energy will lift up the social economy condition in the country and gradually increase the GDP and accelerate the growth of the country. Government mobilize the domestic resources and use domestic tax income as one of the instruments to pay the long term concessional loan.

GOVERMENT PRIVATE SECTORS

The projected result : A good governance to achieve social economic growth that reduce poverty and share prosperity, a clean and sustainable energy for the country to achieve energy security and preserve the climate

Source of pictures : https://pixabay.com/en/photos/?orientation=&image_type=&cat=&colors=&q=green%20energy&order=popular&pagi=2