Fund Supports International Sustainable Energy Projects

Fund Supports International Sustainable Energy Projects

A new Hemispheric Sustainable Energy Fund will help prepare and define sustainable energy projects throughout Latin America and the Caribbean.

U.S. Energy Secretary Bill Richardson and Interamerican Development Bank (IDB) president Enrique Iglesias announced the $1.25 million fund at a meeting of the IDB's executive directors last week. The fund will enable the creation of a multi-million-dollar “family of funds” to help move sustainable energy projects from the idea stage into marketable operation, Richardson said.

"This fund is an important tool to help develop and evaluate clean energy projects," Richardson said. "These projects are key to economic growth and improving environmental quality in developing countries."

Following last year's meeting of Western Hemisphere energy ministers, the Department of Energy and the IDB formed a partnership to help clean energy projects in the region access international financing. HSEF was developed to help these projects to overcome financing difficulties by preparing and defining projects that can be marketed and executed.

In executing the program, HSEF will finance consulting services for preparation of feasibility studies, market analysis, financing mechanisms and project appraisals for projects that use sustainable energy, renewable energy and clean energy technologies. The IDB will administer the funds for eligible institutions such as national and local governments, non-governmental organizations and regional organizations. The DOE will oversee the process.