EBRD sponsors 47 energy efficiency projects worth $17.2m in Belarus

As part of Belarus Sustainable Energy Finance Facility (BelSEFF) the European Bank for Reconstruction and Development (EBRD) financed 47 projects worth $17.2 million, project manager of the EBRD Sustainable Resources and Climate Change Department Vincent Duijnhouwer told reporters on 23 June, BelTA has learned.

“The program has financed 47 projects so far. The total cost of them was $17.2 million. The European Bank for Reconstruction and Development is satisfied with this result; but, of course, we see a big potential,” Vincent Duijnhouwer noted. The projects financed by BelSEFF include the ones to install equipment and produce energy using woodworking wastes, build solar power stations, etc.

Francis Delaey, the EBRD's Head of Office in Belarus, stressed that the implementation of energy efficiency projects will help Belarusian companies successfully compete on the European market. “Rational use of energy is extremely important for Belarus. The use of smaller amounts of energy is the most economically efficient way to solve the problem of soaring energy prices. If Belarusian companies want to be a success on new markets, including on the market of the European Union, they need to raise energy efficiency and thus reduce production costs,” he believes.

Energy efficient projects already bring results in many European countries. “In comparison with American companies, electricity is approximately 20-30% more expensive and gas is two times more expensive for the companies of the European Union. In order to stay competitive companies of the European Union raised energy efficiency by 19%” the EBRD's Head of Office in Belarus said.

Francis Delaey reminded that the EBRD is a leading organization which helps implement projects in the rational use of natural resources and renewable energy sources. In accordance with some reports, the consumption of energy will increase by about one third in two decades; rational use of energy becomes especially important for reducing greenhouse gas emissions and preventing climate changes, i.e. it is important for environmental protection. According to Francis Delaey, after the launch of the sustainable energy initiative in 2006 the EBRD invested over €16 billion in more than 1,000 projects in various countries.

Belarus Sustainable Energy Finance Facility (BelSEFF) has been implemented in the country since 2012. BelSEFF envisages loans in the amount of up to $50 million to sponsor energy efficiency and renewable energy projects. Besides, a number of measures will be taken to improve institutional mechanisms of development in these fields.

The investments are aimed at stimulating sustainable energy saving and production of renewable energy. A number of technical and financial experts provide assistance to loan applicants in the assessment and optimization of projects. Belarusian partner banks evaluate the solvency of a company and the parameters of project implementation and will make a final decision on the loan. According to Vincent Duijnhouwer, four Belarusian banks take part in the program.

The European Bank for Reconstruction and Development (EBRD) was founded in 1991. It is the largest investor in the region. Apart from using its own funds, the EBRD relies on considerable volumes of foreign direct investments. EBRD investments are aimed at fostering structural and industry-wide reforms, the development of competition, privatization and entrepreneurship. EBRD money is used to enhance financial organizations and legal systems, develop the infrastructure necessary to support the private sector, and introduce a reliable corporate management system for the purpose of dealing with environmental protection problems among other things.