- Type: Energy Services
- Investor: IADB
- Category: Sustainability
- Value: $45M
- Status: Implementation
Sustainable Energy Investment Programme (Energy Smart Fund 2)
to increase the use of viable RE and EE technologies in Barbados
Phase 2 of the Sustainable Energy Investment Programme, better known as Energy Smart Fund II, was conceptualized to encompass the activities and lessons learnt from the Energy Smart Fund I Programme, which was implemented over the period February 7, 2011 to June 7, 2017. Energy Smart Fund II seeks to build on the work being undertaken on the Public Sector Smart Energy Programme. Thus, the proposed Phase 2 of the Energy Smart Fund II will seek to augment these efforts.
The Programme targets the following areas:
- a package of financing instruments aimed at providing funding and technical assistance for energy users to design and develop renewable energy and energy efficiency projects;
- the promotion of renewable energy and related technologies that are conducive to increased renewable energy penetration (such as energy storage and smart grids); and
- capacity building and institutional strengthening to enable the successful implementation of the programme.
The purpose of the Energy Smart Fund II would be to further reduce Barbados’ dependency on imported fossil fuels through increased use of energy efficiency and renewable energy technologies. The proposed duration of the project is six (6) years.
The Programme is to be financed with US$30 million loan from the Inter-American Development Bank (IDB) as well as $13 million Euros in grant funds from the European Union (EU).
Objective of Energy Smart Fund II
The objective of the Fund is to increase the use of viable RE and EE technologies in Barbados, in order to decrease energy costs to the population; increase the country’s energy security by reducing its dependency on imported fossil fuels; and increase local and global environmental sustainability by reducing emissions of polluting substances, particulate matter, and carbon dioxide (CO2) and other greenhouse gases (GHG).
This programme is structured as follows:
COMPONENT 1 – Promoting Renewable Energy and Energy Efficiency in SMEs: comprises a package of financing instruments aimed at providing funding and capacity building for energy users to design and develop renewable energy and energy efficiency projects, including electric mobility for SMEs:
‒ Sub-component 1.1 – Pre-investment studies for SMEs: will provide the required pre-investment studies in the form of grants that will allow SMEs to seek financing from the Energy Smart Fund II. These include feasibility studies, detailed design and engineering, energy efficiency audits, environmental and social assessments; aimed at supporting the structuring, funding and execution of such renewable energy and energy efficiency projects.
‒ Sub-component 1.2 – Implementation of Renewable Energy and Energy Efficiency Projects: will provide debt financing for the implementation of renewable energy and energy efficiency projects. However, the expected focus is on SMEs, Tourism Sector and electric mobility.
‒ Sub-component 1.3 – Air-Conditioning Trade-In Rebate Facility: will provide a 50 percent instant rebate for households and businesses to purchase energy efficient air conditioners.
COMPONENT 2 – PromotingEnergy Efficiency and Renewable Energy in the Public Sector: funding will be available for the Government of Barbados to promote renewable energy and energy efficiency and other related technologies such as smart grids and energy storage that are conducive to the increase of renewable energy penetration, under the following sub-components:
‒ Sub-component 2.1 – Pre-investment studies for Government Programmes: will provide funding for pre-investment studies including energy efficiency audits, detailed design and engineering of public buildings to be retrofitted with renewable energy and energy efficiency technologies.
‒ Sub-component 2.2 – Implementation of Energy Efficiency and Renewable Energy projects for the public sector: will finance the retrofitting of in excess of one-hundred (100) public buildings with renewable energy and energy efficiency technologies.
‒ Sub-component 2.3 – Electric Mobility: will finance electric mobility vehicles and charging stations for government’s fleet.
COMPONENT 3 – Capacity Building and Institutional Support: will provide funding for capacity building and institutional strengthening activities for the Project Execution Unit (PEU) of the Programme, the Fund Manager of the Energy Smart Fund, and other government entities with responsibilities related to the sustainable energy sector, aimed at enabling the successful implementation of the Programme.
These activities include:
- data collection and project monitoring;
- public education and awareness and
- studies on renewable energy and energy efficiency applications and trends.
This programme concept was approved by Cabinet in February 2019 and the Loan Agreement was signed in February 2020. The Ministry is currently working on conditions precedent to first disbursement.