Moscow, Russia, 20 August, 2012—IFC,
a member of the World Bank Group, has signed an agreement to assist Russia’s
Tomsk regional administration in developing renewable energy projects,
promoting investment to the sector, and cutting energy costs.
The IFC Russia Renewable Energy Program
will help the Tomsk regional government to analyze the region’s renewable
energy potential, pinpoint technology gaps, and identify investment opportunities
to replace diesel energy generation with small hydro or hybrid sources
such as wind-diesel and wind-solar energy. Transitioning to hybrid energy
generation or small hydro can help the region lower energy costs significantly.
“Increasing energy generation from
renewable sources is of high strategic importance to Tomsk region,” said
Sergei Zhvachkin, Tomsk Oblast Governor. “The regional budget subsidizes
over one hundred diesel generation plants in our region. Transitioning
to renewable energy sources such as wind, solar, geothermal and biomass
will help us to lower energy tariffs, cut subsidy costs, and attract investment.”
Russia is the fourth-largest emitter
of greenhouse gases in the world. Its energy intensity is among the highest
globally, and its existing generation assets are nearing the end of their
technical lifetimes. The Russian government has set a target of 4.5 percent
for renewable energy generation by 2020, up from less than 1 percent now.
If this goal is realized, it could create a $20 billion market for renewable
energy in Russia.
“Renewable energy is a cost-effective
alternative to fossil fuels in many regions of Russia, and IFC can help
the regions play a role in the development of a national renewable energy
market,” said Tomasz Telma, IFC Director for Europe and Central Asia.
“Russian regions working to make an effective transition to renewable
energy sources can also help reduce global greenhouse emissions.”
Under the agreement, IFC will also help
Tomsk authorities to explore bio-energy potential and develop a legislative
framework supporting investment into renewable energy.
The IFC Russia Renewable Energy Program,
supported with funds from the Global Environment Facility, promotes the
development of renewable energy through a combination of investment and
advisory services. The program places a special importance on partnerships
with Russia’s regions.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. . For more
information, visit www.ifc.org.
About the Global Environment Facility
For more information, visit http://www.thegef.org/gef/