Moscow, Russia, November 28, 2012
—IFC, a member of the World Bank Group, signed a cooperation agreement with Belgorod and Nizhny Novgorod regions to develop renewable energy, rehabilitate small hydro power plants, and address climate change.
The IFC Russia Renewable Energy Program works with regions in Russia and assists them in assessing their renewable energy potential. The program helps state authorities evaluate the regional legal framework and identify renewable energy project opportunities.
In Belgorod and Nizhny Novgorod, IFC will help regional governments analyze the potential of rehabilitating small hydro power plants and producing biogas from organic waste. This cooperation intends to identify opportunities to replace coal and oil-based energy generation with biomass and small hydro. IFC will also help foster regional renewable energy projects by developing a regional regulatory base favorable to investments in renewable energy.
“Renewable energy is a cost-effective alternative to fossil fuels in many regions of Russia,” said Patrick Willems, IFC Russia Renewable Energy Program Manager. “The Nizhny Novgorod and Belgorod regions have great renewable energy potential. By promoting private investments in this sector, they can not only address their local energy needs, but also play a catalytic role in unlocking the national renewable energy market.”
The Russian government has set a target to increase the share of renewable energy generation from the current 0.8 to 4.5 percent by 2020. This would create a $20 billion market for renewable energy in Russia, but the regions will have to take a lead role.
The five-year IFC Russia Renewable Energy Program, supported with funds from the Global Environment Facility, promotes the development of renewable energy through a combination of investment and advisory services. The program places a special importance on partnerships with Russia’s regions. In 2012, the program has signed cooperation agreements with four pilot regions: Belgorod, Kaluga, Nizhny Novgorod, and Tomsk.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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