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Climate Business > Project & Corporate Finance  > Renewable Energy Supply Chains 

IFC's involvement in renewable energy supply chains plays a critical role in driving costs down, making renewable energy sources more competitive with conventional energy and eventually achieving grid parity, thus minimizing environmental impact. 

Renewable Energy Supply Chains

 

Renewable energy technology is a fast growing market with promising financial returns and substantial environmental benefits. At IFC, renewable energy investments are part of our mainstream energy investment strategy. IFC offers offers flexible financing solutions and technical assistance to help capitalize on investment opportunities in enterprises offering renewable energy products and services.

 

IFC prioritizes renewable investments because the industry in developing countries can:

 

  • Play a critical role in driving costs down, making renewable energy sources more competitive with conventional energy and eventually achieving grid parity; 
  • Reduce poverty by expanding access to affordable sources of electricity; 
  • Foster infrastructure expansion; 
  • Increase employment in the manufacturing and services supply chain supporting renewable energy generation; 
  • Mitigate the impacts of climate change. 


IFC can help, with expertise as well as financing:
 

  • IFC has been investing successfully in renewable technologies since 1989. IFC can support the establishment and/or expansion of manufacturing and service businesses in developing countries, and provide guidance to manufacturers seeking to establish themselves in developing countries. Through its Infrastructure group, IFC can also support the development of renewable energy infrastructure (ie solar or wind farms) in these countries.
  • IFC is agnostic with respect to technology and is willing to examine alternative solutions; IFC also has the capability and interest to invest in promising early-stage technologies on a selective basis.
  • IFC has global experience in helping local and foreign investors navigate a complex and changing business environment. As a public entity working in the private sector, IFC is an ideal partner to investors in these circumstances.
  • As the industry moves into the emerging markets, there are many opportunities for alliances between companies in industrial and developing countries. IFC has an unrivaled presence in most developing countries and the financial and technical expertise to
    assist in this process. 

 

Project examples:

 

  • ENN Energy Co Ltd, part of China’s XinAo Group. IFC’s debt and equity package will enable the company to produce latest generation, thin-film-based solar photovoltaic modules on a large-scale basis for the first time, driving down production costs and stimulating the development of the local solar photovoltaic market. Thin-film solar PV modules are expected to account for 30 percent of all installations by 2015.
  • Moser Baer, a diversified company in India that is the world’s leading manufacturer of CD and DVD recordable discs. IFC provided a loan to support the company’s expansion into solar photovoltaic cell and module manufacturing.

 

For more information on IFC's investments in renewable energy supply chains, see our Manufacturing and Services pages. 

 

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