Small-Scale Renewable Efficiency Investments
Investing in renewable energy holds many advantages. One of the most important benefits of renewable energy is the fact that it’s non-polluting. And of course as the name tells us it is renewable and does not use resources that can never be replaced. Examples are the use of sunshine, wind, flowing water, biological- and geothermal processes. Renewable energy has a much lower environmental impact than conventional sources of energy. Business owners will also reap the benefits of renewable energy. They will save money on utilities or even become independent of utilities.This category includes projects, which involve the purchase and installation of equipment, systems and processes utilising renewable energy resources for generation of electricity and/or heat and/or cooling and/or any other form of energy replacing fossil fuel resources.
Eligible Investments include the following renewable energy technologies:
- Small run-of-river hydropower plants with an installed capacity not exceeding 10 MW, subject to prior EBRD environmental compliance approval
- Installations of wind turbines with a collective installed capacity not exceeding 10 MW, subject to prior EBRD environmental compliance approval
- Biomass combustion systems generating heat and/or electricity
- Solar-thermal water systems for the production of hot water for processes and/or space heating/cooling and/or sanitary water heating
- Solar-thermal drying systems
- Geothermal heat pumps
- Biogas engines
Eligible investments in renewable energy should have a simple pay-back period below 15 years at the time of the approval and shall achieve a minimum of 2.1 kWh per annum of generated electricity (equivalent) per 1 USD of Investment Cost (equivalent of 3 kWh per 1 EUR of Investment Cost).
For wind turbines, the installed capacity utilization rate must not be lower than 0.22.
For run-of-river hydropower plants, the installed capacity utilisation rate must not be lower than 0.25.
The financial viability of all renewable energy projects should result in a positive Net Present Value (calculated using a discount rate of 8%).