Due to the risk involved, debt financing for renewable energy (RE) and energy efficiency (EE) projects in Egypt, Morocco, and Tunisia typically requires substantial proportions of equity and grants in the financing structure. This may strain the developers' capital resources. Innovative structures are needed to close the gap between equity and debt, available to RE and EE projects and increase the leverage of scarce public funds.
To develop a financing instrument to improve financing possibilities for RE and EE projects in the southern Mediterranean region.
Analyse the RE and EE market structure and opportunities and evaluate the financing needs in each country of the target area
Identify the optimal legal and economic framework for financing RE and EE projects in each country
Devise a structure for Public-Private Partnership between governmental agencies and private investors to:
o improve risk allocation to better suit the objectives of the project partners o propose an efficient use of public funds to leverage private investor financing