Cross-cutting analysis

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Background and context

Energy efficiency has frequently been highlighted by the Governments of India and Indonesia as a key policy priority. Both countries have set targets for energy intensity improvements and implementation of energy efficiency measures will be key to meeting ambitious energy transition and climate goals. While both countries have seen reductions in energy intensity, there remains significant potential for greater progress across all sectors. Access to finance for energy efficiency investments can be challenging with high perceived risks of investment, particularly in newer technologies and high transaction costs.

The Energy Savings Insurance (ESI) model was first developed by the Inter-American Development Bank (IDB) in 2014, with the support of Basel Agency for Sustainable Energy (BASE), as a mechanism to build investor confidence and improve access to low-cost finance for energy efficiency projects. Originally designed for implemented in Latin America, the ESI model has been implemented in Colombia and El Salvador and partial implementation or under way in a number of other countries in the region. It was developed with financial support from international donors such as the Danish Energy Agency (DEA), the Clean Technology Fund (CTF), and the Green Climate Fund (GCF). It is now being replicated in numerous countries around the world and countries such as India, Indonesia, the Philippines, and Viet Nam have expressed interest in the model.

Building on the Clean Energy Finance and Investment Roadmap of India, the Clean Energy Finance and Investment Policy Review of Indonesia and the Blended Finance Guidance for Clean Energy, the OECD CEFIM programme is working with India and Indonesia to provide technical support on the development of ESI schemes in the country. To help build knowledge and faciliate country experience sharing, the OECD organised a 1^st International Focus Group Discussion to share lessons learned in the development and implementation of ESI programmes in Colombia, El Salvador, Chile and Mongolia.

 Watch the video recording of the event

Speakers

Introduction and scene-setting

Moderator: Cecilia Tam, Team Lead, Clean Energy Finance and Investment Mobilisation Programme, CEFIM, OECD

• Daniel Magallon, Managing Director, BASE:  “Driving investments in energy efficiency through Energy Savings Insurance (ESI)”
• Vineeta Kanwal, Director, BEE, India
• Gigih Udi Atmo, Director fo Energy Conservation, MEMR, Indonesia: “Perspective and objective: Energy Savings Insurance as a tool to foster energy efficiency investment”
• Faaris Pranawa, Director, PT SMI, Indonesia: “PT SMI's perspective on energy efficiency”
• David Morgado, Senior Energy Specialist, Asian Development Bank
• Ambiyah Abdullah & Rio Jon Piter Silitonga, Research Analyst for Energy Efficiency, ASEAN Centre for Energy: “Supporting innovative mechanisms for industrial energy efficiency financing in Indonesia”
• Mada Ayu Habsari, Ecoxyztem, UK Mentari: “Updates on planned/upcoming international development support in Indonesia”
  
  

International experience sharing

• Claudia Gutierrez, Head of Cooperation and International Relations, Bancoldex: “Bancoldex's Energy Savings Insurance programme”
• Moises Velasquez, Project Coordinator, Bandesal: “Credit lines for Energy Efficiency in SMEs”
• Milagros Herrera, Assistant Manager of Financial Segment, Banco Estado: “Energy Savings Insurance (EST) programme”
• Daniel Magallon, Managing Director, BASE: “Energy Savings Insurance implementation in Mongolia”
• Chetna Hareesh Kumar, former OECD: “Energy Savings Insurance”
• Cornelia Schenk, Energy Efficiency Policy Analyst, International Energy Agency
• Ivo Besselink, Energy and Industries Sector Senior Specialist, Green Climate Fund: “Energy Savings Insurance”
  
  

Question & Answer Forum

Moderator: Mr Hakimul Batih, Indonesia Programme Local Co-ordinator, OECD

Closing and next steps

• Cecilia Tam, Team Lead, Clean Energy Finance and Investment Mobilisation Programme, CEFIM, OECD