Add us as your preferred source on Google to see more of our content in Search.
Add to Preferred SourcesThe Rockefeller Foundation and U.S. International Development Finance Corporation (DFC) announced they have signed a Memorandum of Understanding (MOU) to work to end energy poverty by promoting investment in Distributed Renewable Energy (DRE) around the world.
The MOU will focus on delivering reliable, sustainable electricity to the 800 million people worldwide who currently lack electricity, and 2.8 billion more who have unreliable access, to support economic recovery from the COVID-19 pandemic and foster long-term economic growth.
Together with @RockefellerFdn we’re committed to empowering the world’s most vulnerable people and supporting #COVID19 recovery through investment in distributed renewable energy. ⚡? pic.twitter.com/DJoxjTW6qO
— DFCgov (@DFCgov) December 21, 2020
The partnership will be built around three pillars:
- Financing: DFC will invest up to $2 billion in distributed renewable energy and The Rockefeller Foundation will provide up to $50 million to de-risk DFC investments.
- Global Platform: DFC and The Rockefeller Foundation will develop a multi-partner global platform to mobilize additional investment by promoting co-financing, grant making, transaction pipeline development, advocacy, and technical assistance to expand investments in distributed renewable energy in underserved markets.
- Green Energy: DFC and The Rockefeller Foundation will work together to communicate the role that green energy infrastructure and distributed renewable energy can play in powering an inclusive recovery for the more than one billion people worldwide who lack access to reliable electricity.
“Our collaboration with The Rockefeller Foundation fills a critical gap that exists for the private sector to finance renewable energy projects, a problem that has been exacerbated by the global pandemic,” said DFC CEO Adam Boehler. “By using blended finance, this MOU advances DFC’s work to sustainably expand energy access while continuing to respond to the pandemic by focusing on communities that have been traditionally been hardest to reach. Our partnership will empower billions of dollars of renewable energy projects across the developing world.”
Distributed renewable energy is focused on generating power from sources such as mini-grids and off-grid sources that are located near the point of use, rather than centralized generation sources like power plants. This approach helps address one of the key challenges in delivering power to remote communities that often cannot access power from large power plants. Recent technological advances have made DRE systems more affordable, effective, and easier to deploy, offering the potential to quickly provide electricity for homes, business, healthcare, agriculture, and education.
The MOU seeks to achieve economies of scale by bringing together two major initiatives: The Rockefeller Foundation’s Powering an Inclusive Covid-19 Recovery and DFC’s Roadmap for Impact, the agency’s new strategy for maximizing its development impact.
As part of the signed MOU, The Rockefeller Foundation and DFC have committed to share their respective strengths, experiences, and resources to promote the development of DRE infrastructure projects that quickly, sustainably and cost-effectively end energy poverty. The organizations will support an equitable global recovery that prioritizes economic growth, human development, and environmental sustainability.