Development of an innovative fund to support renewable energy in developing countries
MCG supported Deutsche Bank with an innovative concept to scale-up renewable energy investment in developing countries through a global fund: the Global Energy Transfer Feed-in Tariff (GET FiT) Program. To create GET FiT, MCG identified and evaluated barriers to renewable energy deployment in developing countries through over 160 interviews with international financiers and project developers active in target markets. These insights led to the development of a risk management and mitigation framework that could enable cost-effective and rapid scale-up of renewable electricity. The initial concept was further refined in partnership with the European Climate Foundation and UNDP through a publication called GET FiT Plus. GET FiT Plus explores how public sector de-risking instruments can catalyze private sector capital to support renewable energy in developing countries. The report surveys approaches to mitigating risk through technical assistance, concessional loans, guarantees, insurance, public co-investment, and grant funds. MCG also assisted Deutsche Bank with evaluating where to pilot GET FiT by conducting an analysis of East Africa in cooperation with multiple international partners. GET FiT became operational in Uganda in 2013 and has awarded over 10MW in solar concessions to date.