De-Risking Renewable Energy Investment (DREI) Framework

Country support in transition towards more sustainable energy systems (includes large-scale grid-based electricity projects using wind or solar, and small-scale off-grid electrification projects such as solar home systems or solar-battery minigrids).

DREI is an innovative, quantitative framework to assist policymakers in identifying cost-effective instruments to promote and scale-up private sector investments in renewable energy. The application of DREI is data-oriented, relying on a structured methodology and a suite of financial models to systematically assess the barriers and associated risks holding back private sector investment. The framework delivers clear de-risking recommendations to policymakers, supported by concise visual outputs.

Partners

Development Banks

Development Banks

DFIs

DFIs

Governmental Agencies and other relevant agencies

Governmental Agencies and other relevant agencies

Municipalities

Municipalities

Products and Country Experiences

Africa Minigrids Programme (AMP):

Africa Minigrids Programme (AMP):

The AMP is a new UNDP-led Africa-wide initiative, funded by the Global Environment Facilty, and in partnership with AfDB and the Rocky Mountain Institite. Under the AMP, UNDP will support an initial 11 African countries in developing the enabling environments to increase the commercial viability of renewable energy minigrids and scale up investments in decentralized renewable energy solutions in Africa.

Belarus, Cambodia, Kazakhstan, Lebanon and Tunisia:

Belarus, Cambodia, Kazakhstan, Lebanon and Tunisia: De-risking renewable energy investment. Application of the DREI Framework to analyse the most cost-effective public derisking measures to promote private sector investment in renewable energy (wind and solar PV).

Armenia: De‐Risking and Scaling‐up Investment in Energy Efficient Building Retrofits.

Armenia: De‐Risking and Scaling‐up Investment in Energy Efficient Building Retrofits. This project is supporting the creation of a favourable market environment and a scalable business model for investment in energy efficient building retrofits in Armenia, leading to sizeable energy savings and accompanying GHG emission reductions. UNDP cooperates with the Government of Armenia, local authorities, financing institutions, private sector stakeholders and ESCOs to deploy the most cost-effective combination of policy and financial de-risking instruments.

Accelerating Renewable Energy in Central America:

Accelerating Renewable Energy in Central America:  This project promotes renewable energy projects through a mechanism for partial credit guarantees and other means. The project is administered by UNDP and executed by CABEI. This effort has catalyzed new investments estimated at some US$156 million, funding 23 small renewable energy projects for a combined installed capacity of 56 megawatts in several Central American countries.

De-risking energy services in Brazil:

De-risking energy services in Brazil:  UNDP has partnered with IADB in Brazil to de-risk energy sector investments, addressing the broader policy environment and facilitating, by mitigating the performance and risk aspects of energy services companies, the entry of commercial banks and other private sector financing to support energy efficiency measures in buildings.  IADB has provided the required guarantee facility while UNDP’s de-risking supports a broader energy strategy that benefits other sub-sectors, projects and initiatives.

focal points

Jonathan Schwieger

DREI Lead Specialist

UNDP Staff Only: Once you identify your SDG Financing expert, please place a request for his/her services through your CO corporate planning system (IWP platform) under the ‘Service Requested’ section. Please be sure to indicate the name of the financing expert on the service request page (‘Summary of Service Expected’ box) in order to facilitate assignment.