THE MULTILATERAL INVESTMENT FUND (MIF) CLEAN & EFFICIENT ENERGY: BUSINESS CASES

JENNIFER BALDWIN

Georgetown, Guyana April 18, 2012 www.fomin.org

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1. WHAT IS THE MIF?

2. LESSONS FROM CHILE

3. OPORTUNITIES

4. MIF PROJECTS IN THE CARIBBEAN

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1. WHAT IS THE MIF?

4. www.fomin.org

THE MULTILATERAL INVESTMENT FUND IS…

A member of the Inter-American Development Bank Group (IDB)

The largest provider of technical assistance to the private sector in LAC

An innovation laboratory, testing and scaling new business models

Flexible with tools including technical assistance (grants), loans, and equity investments

Focused on SME development, low-income populations and gender equity

LAC

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2. LESSONS FROM CHILE

6. www.fomin.org

LESSONS FROM CHILE:

Energy efficiency and renewable energy in small & medium sized enterprises (SMEs), including tourism

Knowledge transfer to Jamaica

www.energiaslimpias.cl

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• Ahorros de 1000

www.energiaslimpias.cl

Hotel Explora, San Pedro de Atacama

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CASE STUDY: Hotel Explora, San Pedro de Atacama

SITUATION:

• Luxury hotel in the Chilean Andes

• Annual energy costs of $350,000 USD in 2007

• Hotel is off-grid and generates all its energy from petroleum, natural gas, and LPG

ACTIONS:

• 2 new petroleum electricity generators installed (200 kVA)

• New energy metering system

• New boiler system with better controls

• Renovation of reverse osmosis water treatment system

• Lighting fixtures replaced (T5 to T10 fluorescent bulbs)

RESULTS:

• $123,000/year in savings

• 1-3 year return on investment

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• Ahorros de 1000

www.energiaslimpias.cl

Hotel Atton El Bosque

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CASE STUDY: Hotel Atton El Bosque

SITUATION:

• Hotel in Santiago, 18 floors, 240 rooms

• High energy costs associated with lighting for public spaces and gas for hot water and heating

ACTIONS:

•Formal energy management system

• Energy efficient lighting installed (50W Halogens, 3W LEDs and 9W CFLs)

• Solar thermal water heating on roof

RESULTS:

• Annual savings of $82,000/yr

• Cut lighting energy used by 80% (from 37 kW to 8 kW)

• Cost of hot water reduced by 22%, gas consumption down 6% per year

• 1-5 year return on investment

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3. OPPORTUNITIES

12. www.fomin.org

COMING SOON… THE CLIMATE SCOPE

http://climatescope.fomin.org

Report highlighting new opportunities for entrepreneurs and investors in clean energy.

26 countries including : Bahamas, Barbados, Dominican Republic, Guyana, Haiti, Jamaica, Suriname, Trinidad and Tobago, and Central America.

The final report will be presented during the Rio+20 conference in June, 2012.

13. www.fomin.org

LAST CHANCE… IDEAS COMPETITION

www.iadb.org/ideas

$200,000 prize

Competition closes April 30

Innovation in energy efficiency, renewable energy, climate change mitigation, and fossil fuel substitution

This round is Caribbean-only: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Suriname, Trinidad and Tobago.

14. www.fomin.org

HOW TO WORK WITH US

Technical assistance (grants) to civil society

– NGOs

– Business associations

– Universities

Loans and equity directly to the private sector

– Social entrepreneurs

– Microfinance institutions

Member countries include Barbados, Bahamas, Jamaica, Dominican Republic, Haiti, Guyana, Suriname, Trinidad & Tobago, and Central America.

Online application at: www.fomin.org

Access to

Markets and Capabilities

53%Access to Finance

30%

Access to Basic Services

17%

2010 Approved Value by Access Area

Grants70%

Loans10%

Equity19%

2010 Approved Value by Instrument

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4. MIF PROJECTS IN THE CARIBBEAN

16. www.fomin.org

ENERGY EFFICIENCY GUYANA MANUFACTURING AND SERVICES ASSOCIATION (GMSA)

Context:

High energy costs and low reliability

Project:

Research on energy consumption trends across 8 sectors

Pilot energy efficiency projects with 5 companies

Recommendations on best practices in self-generation

17. www.fomin.org

NATURAL CAPITAL

CONSERVATION INTERNATIONAL

Context:

Guyana Low Carbon Development Strategy

Georgetown-Lethem road expansion

Project:

Ecotourism to increase economic value of natural capital

Low-carbon business models with SMEs in agriculture and tourism

18. www.fomin.org

ADAPTATION TO CLIMATE CHANGE

CARIBSAVE

Context:

Cost for Latin America and the Caribbean to adapt to a 2°C warmer world by 2050:

$16.8-21.5 billion per year Project:

Jamaica, Belize, Barbados, and the Bahamas Adaptation plans for 8 coastal communities and 50 SMEs in tourism, fishing, agriculture, and crafts Inspire communication and new business models

THANK YOU!

JENNIFER BALDWIN JBALDWIN@IADB.ORG