PROJECT: Development of the Energy Savings Insurance Program (El Salvador – BANDESAL)
DESCRIPTION: In El Salvador, ESI is being implemented with the support of the second-tier Development Bank of El Salvador BANDESAL with support of the Danish Energy Agency and recently approved loan and grant resources from the Green Climate Fund (GCF) to establish a concessional line of financing of USD 40 Million with USD 20 Million by the GCF and USD 20 Million co-financing by BANDESAL for investments in efficient technology (boilers, motors, refrigeration chambers, air conditioning A/C) by SMES. The work is conducted on the basis of a market assessment, which has assessed the potential of EE investments in the country and the financial and non-financial barriers that hinder these investments. The results of the market assessment illustrate the importance of a combination of standardized risk management instruments including performance contracts, validation mechanisms, and insurance mechanisms; and furthermore, a potential of some 500 firms investing in energy efficiency projects and reducing about 37,500 tCO2e/year..
SOURCE AND AMOUNT:
- IDB/Danish Government/GCF $300,000 + $20MM
PROJECT TYPE: Technical cooperation
OPERATION NUMBER: RG-X1258
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