Designing Credit Lines for Energy Efficiency

Many economically attractive opportunities to invest in energy efficiency are forgone because of various market barriers, notably the limited availability of commercial financing for energy efficiency projects. Once a government decides, as a matter of policy, to scale up energy efficiency, it typically must engage commercial banks to provide financing to the private end users who will carry out the energy efficiency projects needed to make the national policy a reality. Credit lines help banks establish an energy efficiency business line by mitigating the perceived high financial risk of energy efficiency projects and of the energy service companies that carry them out, and sometimes by building into the credit line a technical assistance component to improve understanding of the fundamentals of energy efficiency projects. Energy efficiency credit lines make funds available to participating financial institutions (including local banks). The success of a credit line depends to a great extent on the selection of competent and committed financial institutions. A technical assistance component built into the credit line helps lower the technical and financial risk of projects.

Bibliographic Details

Main Authors:	Sarkar, Ashok, Sinton, Jonathan, de Wit, Joeri
Format:	Brief biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2014-05-21
Subjects:	ACCESS TO ELECTRICITY, ACCOUNTABILITY, ACCOUNTING, AVAILABILITY, AVAILABILITY OF CREDIT, BALANCE, BALANCE SHEET, BALANCE SHEETS, BANK BRANCHES, BANK CREDIT, BANK FINANCING, BANK LENDING, BANK LOAN, BANKS, BLACK CARBON, BORROWER, BOTTOM LINE, BURNING COAL, BUSINESS DEVELOPMENT, CAPACITY BUILDING, CARBON, CARBON DIOXIDE, CASH FLOW, CASH FLOWS, CLEAN ENERGY, CLIMATE, CLIMATE CHANGE, CO, CO2, COAL, COLLATERAL, COMBUSTION, COMMERCIAL BANKS, COMMERCIAL DEBT, COMMERCIAL LENDERS, COMMERCIAL LOANS, CREDIT LINE, CREDIT LINES, CUSTOMER SERVICE, DEBT, DEBT FINANCING, DEMAND-SIDE MANAGEMENT, DEVELOPMENT BANK, DISTRIBUTION OF ENERGY, ELECTRICITY, ELIGIBILITY CRITERIA, EMISSIONS, ENERGY CONSERVATION, ENERGY CONSULTANT, ENERGY CONSUMERS, ENERGY CONSUMPTION, ENERGY DATA, ENERGY DEVELOPMENT, ENERGY EFFICIENCY, ENERGY EFFICIENCY INVESTMENTS, ENERGY GENERATION, ENERGY INDUSTRIES, ENERGY MIX, ENERGY SAVINGS, ENERGY SYSTEMS, EQUITY INVESTMENTS, EXCHANGE RATE, EXTERNAL FINANCING, FACILITATION, FINANCIAL FLOWS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARY, FINANCIAL MARKETS, FINANCIAL PRODUCTS, FINANCIAL RISK, FINANCIAL RISKS, FINANCIAL TERMS, FINANCING NEEDS, FORM OF COLLATERAL, FOSSIL, FOSSIL FUELS, GENERATION CAPACITY, GLOBAL ENVIRONMENT FACILITY, GOVERNMENT CREDIT, GREENHOUSE, GREENHOUSE GAS, GREENHOUSE GAS EMISSIONS, GREENHOUSE GAS INVENTORY, GREENHOUSE GASES, HEAT, HEAT GENERATION, ID, INCOME, INCOME STATEMENTS, INDUSTRIAL ENTERPRISES, INTEREST RATE, INTERNAL FINANCING, INTERNATIONAL FINANCIAL INSTITUTIONS, INVESTMENTS IN ENERGY, INVESTMENTS IN ENERGY EFFICIENCY, LEGISLATION, LENDER, LENDERS, LINE OF CREDIT, LOAN, LOAN AMOUNT, LOAN OFFICERS, LOAN PROCESSING, LOCAL FINANCIAL INSTITUTIONS, LOW INTEREST RATE, MARKET BARRIERS, MARKET DEVELOPMENT, MARKET DISTORTIONS, METHANE, NEW BUSINESS, OIL, OIL EQUIVALENT, PETROLEUM, PIPELINE, PORTFOLIO, PUBLIC AGENCIES, REGULATORY FRAMEWORK, RENEWABLE ENERGY, RENEWABLE ENERGY PROJECTS, RENEWABLE PORTFOLIO STANDARD, RENEWABLE SOURCES, REPAYMENT, RISK MANAGEMENT, SOURCE OF ENERGY, SOVEREIGN GUARANTEE, SUSTAINABLE ENERGY, TECHNICAL ASSISTANCE, TONS OF COAL EQUIVALENT, TRANSACTION COSTS, TRANSMISSION SYSTEM, TRANSPORT, UTILITIES, WIND, WIND POWER, WIND POWER CAPACITY, WIND SITES,
Online Access:	http://documents.worldbank.org/curated/en/2014/01/19543914/designing-credit-lines-energy-efficiency http://hdl.handle.net/10986/18410
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