This is an excerpt from EERE Network News, a weekly electronic newsletter.
OECD Approves Special Financing for Renewable Energy Exports
The Organization for Economic Co-operation and Development (OECD)— representing 30 developed countries that share a commitment to democratic government and a market economy—announced on May 11th that 33 countries, including the United States, have agreed to special financing terms for renewable energy and water projects in developing countries. The agreement allows extended repayment terms of 15 years for those projects—compared to 12-year terms for conventional power projects—under a two-year trial period that begins on July 1st. The renewable energies covered by the agreement include wind energy, geothermal energy, ocean energy, solar energy, and biomass energy. See the OECD press release.
The financing terms were agreed to by the participants in the Arrangement on Officially Supported Export Credits, a non-binding agreement first established in 1978 and most recently updated in late January. The agreement aims to create a level playing field for exports by setting strict limits on the financing that exporting countries can offer. By loosening the restrictions for renewable energy and water projects, the participants aim to encourage sustainable development projects in developing countries. According to the latest version of the agreement, the participants currently include Australia, Canada, Japan, New Zealand, Norway, South Korea, Switzerland, the United States, and the 25 countries in the European Community. See the latest version of the agreement (PDF 308 KB). Download Acrobat Reader.
Renewable energy financing is as much an issue within the United States as it is for U.S. exports. To address the issue at home, the second annual "Renewable Energy Finance Forum - Wall Street" will be held in New York City on June 23rd and 24th. The forum is co-sponsored by the American Council On Renewable Energy and Euromoney Energy Events. See the forum Web page.