IFC Supports Renewable Energy Projects In Russia's Far East

IFC, a member of the World Bank Group, has signed an advisory services agreement with eastern Russia’s largest energy supplier to develop renewable energy sources in isolated areas of the country, part of an effort to decrease local dependence on imported fuel and cut greenhouse gas emissions.

IFC will help RAO Energy System of East identify renewable energy opportunities in Russia’s Far East Federal District. Through its Russia Renewable Energy Program, IFC will also support the joint-stock company as it reviews local regulations and identifies investment opportunities.

“The agreement with IFC will help us intensify our work in renewable power generation,” said Alexey Kaplun, Deputy CEO of RAO Energy System of East. “With the very high cost of fossil fuel in areas with decentralized power supplies, it is important to develop renewable energy as an environmentally friendly and cost-effective power source for many communities in the Far East.”

The agreement is part of IFC's efforts to support climate-conscious private businesses in Europe and Central Asia.

“Renewable energy is a cost-effective alternative to fossil fuels in many regions of Russia,” said Tomasz Telma, IFC Director for Europe and Central Asia. “Partnerships with strong local players, like RAO Energy System of East, can help us bring affordable green power to people living in isolated areas of the country.”

In fiscal 2012, IFC invested $436M in 22 companies to support climate-friendly investments in renewable energy, energy efficiency, and water provision across Europe and Central Asia. IFC oversees 37 advisory projects that aim to increase investment by providing advice to governments and businesses. IFC also works to reduce its environmental footprint by making its regional facilities carbon-neutral.

Russia became a member and shareholder of IFC in 1993. Since then, IFC has invested more than $10B in the country, including $3.2B in syndicated loans, and has been involved in 270 projects across a variety of sectors. IFC’s investment portfolio in Russia stands at $2.3B, the fourth-largest country exposure for IFC globally.