The US Department of Energy, in cooperation with the Interamerican Development Bank (IDB), has established the $1.25 million Hemispheric Sustainable Energy Fund (HSEF) to help governments throughout Latin America and the Caribbean meet their energy needs through clean energy projects. The fund enables the creation of a multimillion dollar “family of funds” to help commercialize sustainable energy projects.
HSEF will help regional clean energy projects by financing their feasibility studies, market analysis, and project appraisals so clear the way for additional financing from the IDB or other financial institutions. Theresa Fariello, DOE’s deputy assistant secretary for international energy policy, says, HSEF is designed to encourage contributions from other donor countries and private organizations. The private sector stands to benefit greatly from HSEF because the fund will condition the markets for private sector investment and create new project opportunities throughout the region.” Priority will be given to projects that demonstrate the potential to attract future private investment and strengthen a country’s commitment to sustainable energy policies and reform.
The IDB will administer the funds for eligible institutions such as national and local governments, non-governmental organizations, and regional organizations. The Energy Department will oversee the process.
To be selected, a project must: be located in a borrowing member country; promote community based sustainable energy development; demonstrate the potential to attract future private investment in sustainable energy development; increase access to under-served and unserved areas; strengthen commitment to sustainable energy policies and reforms in host countries; and incorporate the private sector to foster long-term markets.
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