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Approaches and financial models for scaling up Norwegian development assistance to clean energy

Publication date:
R. Anderson
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Norway has launched its Clean Energy for Development Initiative, thus initiating a process aimed at firmly establishing support to clean and renewable energy as a central pillar in its development cooperation. This report aims to provide input into this initiative and is the culmination of a consultative process facilitated by NORAD which has served as a forum for capturing new ideas and actions for further implementation. The report provides a description of ownership and financial models and presents 10 possible interventions for scaling up Norwegian support to clean and renewable energy projects.The possible interventions suggested by the authors are to:

allocate ODA (Official Development Aid) so as to mobilise public-private partnerships
allocate equity finance so as to mobilise renewable energy projects in LDCs
better align guarantees with local development priorities
scale up support to project preparation
actively promote engagement by private investors
support rural electrification agencies/funds
rollout innovative rural renewable energy access programs
mobilise CDM (Clean Development Mechanism) project finance
provide small scale demand-side financing
coordinate anti-corruption and governance measures.