The Scaling-Up Renewable Energy Program in Low Income Countries (SREP) is a targeted programme of the Strategic Climate Fund (SCF), which is one of two funds under the Climate Investment Funds (CIF) framework.
The SREP was designed to demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector in low-income countries. It aims to help low-income countries use new economic opportunities to increase energy access through renewable energy use and to foster economic growth.
|Name of the Fund||Scaling-Up Renewable Energy Program in Low Income Countries (SREP)|
|Official Fund Website||https://www.climateinvestmentfunds.org/topics/energy-access|
|Proposed Life of Fund||The SREP is subject to the CIF ‘sunset clause’ which proposes the closure of the CIF once a new financial architecture becomes effective under the UNFCCC regime. The implementation of the CIF ‘sunset clause’ has been suspended repeatedly and in 2019 indefinitely. Until such time, donors and recipients operate under the existing framework.|
|Objectives||The SREP is designed to demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector in low-income countries. It aims to achieve five main objectives:
SREP’s targets include:
|Financial inputs and fund size||As of November 2020, SREP’s financial inputs amount to USD 750 million, including USD 86 million in funding from the private sector.
The contributor countries are: Australia, Denmark, the Republic of Korea, Netherlands, Norway, Spain, Sweden, Switzerland, Japan, United Kingdom and United States.
The application of all CIF finance (concessional loans, grants, and guarantees through the multilateral development banks (MDBs)) can be classed as official development assistance (ODA) by MDBs if:
|Activities Supported||SREP provides financing for renewable energy use and generation, specifically for proven “new” renewable energy technologies. For the purposes of SREP, renewable energy technologies include solar, wind, waste to energy, cookstoves, geothermal, as well as hydropower with capacities normally not exceeding 10MW per facility. Most of SREP projects provide energy solutions that include multiple renewable energy technologies (Mixed RE).
SREP also supports complementary technical assistance as this is considered essential for transformative and enduring change and country engagement and ownership. Technical assistance includes support for planning and pre-investment studies, policy development, legal and regulatory reform, business development and capacity building (including for knowledge management and monitoring and evaluation).
|Secretariat or Administrative Unit||The CIF Administrative Unit supports the work of the Strategic Climate Fund Trust Fund Committee and other committees, including the SREP Sub-Committee. It provides recommendations and reporting on operational and financial matters to the CIF governing bodies.
The Unit is housed in the World Bank Group’s Washington DC offices and is comprised of a small professional and administrative staff.
|Trustee||The World Bank (International Bank for Reconstruction and Development) acts as Trustee for all Climate Investment Funds, including the SREP.|
Fund Finance and Access Modalities
|Conditions and Eligibility Requirements||Low income countries are prioritised for the SREP.
Country access requires:
Proposed criteria for country selection are:
For more detailed information on selection criteria: Criteria for Selecting Country and Regional Pilots under SREP (March 2010).
Regarding project eligibility, preference is given to projects with strong poverty alleviation benefits. Economic and/or social development and environmental benefits are key criteria for project selection.
Project proposals should demonstrate the potential to scale-up from lessons learned in pilot and demonstration projects and programmes (such as those supported by the GEF). A key criterion is the potential of the proposal for demonstration and replication, particularly the potential for removing barriers in the enabling environment beyond the immediate project boundary so as to facilitate scaling up through private sector investments.
|Accessing the Fund||
|Safeguards, Gender and Indigenous Peoples||
|Decision Making Structure||The SREP is part of the governance arrangements for the SCF, which includes a SCF Trust Fund Committee, a SREP Sub-Committee, and a MDB Committee.
SCF Trust Fund Committee
The list of actual SCF Trust Fund Committee members is available at: https://www.climateinvestmentfunds.org/cif_enc
Composition of the SREP Sub-Committee:
Decision-making is achieved through consensus.
The list of actual SREP Sub-Committee members is available at: https://www.climateinvestmentfunds.org/cif_enc
An Independent Evaluation of the CIF experience was requested by the CIF Trust Fund Committees and completed in 2014. The evaluation was conducted by a consulting firm selected and supervised by a joint working group of the independent evaluation offices of five Multilateral Development Bank (MDBS): ADB, AfDB, EBRD, IDB, and the World Bank.
Among the findings are the following:
The CIF administrative unit has also been working with partner countries to understand their domestic frameworks for monitoring and evaluation. A strategic assessment of the environmental ,social and gender impacts of the CIF was completed in 2010, and IUCN conducted a Gender Evaluation of the CIF in 2012. More recently, a report evaluating the engagement of women and gender-related groups in the CIFs was released in 2020.
|Participation of Observers and Stakeholders||In designing the Climate Investment Funds, consultations took place with potential donors and recipients, the United Nations family, other multilateral development banks (MDBs), civil society organisations, and the private sector. The CIF were created on agreement from some 40 developing and industrialised countries. Non-governmental actors have a direct role in the governance of the fund as detailed above. Representatives of NGOs and the private sector were also part of the expert group.
These observers can add items to committee agendas, recommend external experts, and request verbal interventions during discussions.
The list of actual SREP-SC observers is available at: https://www.climateinvestmentfunds.org/cif_enc/
|Transparency and Information Disclosure||Pledges, deposits and funding decisions for SCF and its subsidiary funds (PPCR, SREP and FIP) are reported to the SCF Trust Fund Committee in biannual trustee reports. Details on individual projects are made public and available at: https://www.climateinvestmentfunds.org/projects
|Other Issues Raised|