GET FiT Program

03/05/2010 11:37

The world faces two interrelated energy challenges that require serious capital mobilization: global CO2 must be stabilized to avoid catastrophic climate change, and access to affordable, reliable and clean energy must be extended to the 1.5 billion people of the developing world in rural areas without grid connection to alleviate poverty and drive economic development. Renewable energies can help achieve these goals, in tandem with complementary efforts focusing on funding for energy efficiency, other low carbon energy options, and electricity grid expansion. Within this wider context of national plans, the Global Energy Transfer Feed-in Tariffs (GET FiT) Program is a concept to specifically support both renewable energy scale-up and energy access in the developing world through the creation of new international Public-private Partnerships. GET FiT would efficiently combine a fund of public money directed for renewable energy incentives with risk mitigation strategies and coordinated technical assistance to address project development and financing barriers. This combined approach would catalyze the supply of, and the demand for, private sector financing of renewable energy projects in both middle- and low-income countries, while also insuring maximum incentive capture at least cost to the funding partners. Importantly, it would provide what we see as crucial for private investors: Transparency, Longevity and Certainty - TLC. GET FiT would serve as a bridge to grid parity for renewable energy both by allowing developing countries to gain experience with renewable resources prior to break-even scenarios, and by adjusting incentive rates to reflect lower prices over time. This proposal is written from a standpoint of developers and financiers of renewable energy projects, highlighting the instruments which would help to mobilize private capital.  The GET FiT concept could be flexibly adapted to specific national contexts, and could be launched on a bilateral, regional, or global basis. The race is on to create green economies and the developing world should not be left out.

Click here for the full article...

Go back