CABEI supports small renewable energy producers in Guatemala
The mini hydroelectric plant will generate an estimated 2,760 MWh and reduce CO2 emissions into the environment by 1,683 tons.
Guatemala City, July 24, 2015. - Through its Accelerating Renewable Energy Investment in Central America and Panama Project (ARECA), the Central American Bank for Economic Integration (CABEI) signed a US$79,192.00 non-reimbursable technical assistance agreement with the “Carmen Amalia” Hydroelectric Project, which is located on Guatemala’s southern coast, to support its preinvestment phase.
The renewable energy project involves the construction of a mini hydroelectric plant that will directly benefit 145 people and indirectly benefit 155; it will also contribute to allowing small entrepreneurs to participate in renewable energy generation, thereby making a positive impact on the energy matrix.
The non-reimbursable technical assistance is being provided by ARECA Project, a tripartite initiative of the Global Environment Fund (GEF), the United Nations Development Fund (UNDP) and CABEI, as the executing body. ARECA Project promotes the financing of renewable energy projects through the reduction of financial barriers, by implementing a mechanism for partial credit guarantees and the creation of capacity to foster the development of small renewable energy projects in Central America (under 10 MW).
CABEI is the main financing source for the region’s development and, as part of its 2015-2019 Institutional Strategy “Integrating Sustainable Development and Competitiveness,” it promotes initiatives to support sustained economic growth through the implementation of projects that generate renewable energy from such sources as water, wind, biomass, geothermal and solar; these contribute to reducing the greenhouse gas emissions that lead to climate change.
