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
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.
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.
For more information about the Global
Environment Facility, please visit http://www.thegef.org/gef/