K&M was engaged by the World Bank to assist with the preliminary design of a proposed clean energy fund for Egypt. The fund would support the Government’s clean energy targets for renewable energy and energy efficiency, including helping the Government to develop as much as 4,300 MW of privately-financed greenfield solar PV and wind capacity by 2020. The fund would support these efforts by providing technical assistance for project development and by offering various financial instruments to help projects achieve financial closure. K&M was tasked with developing the concept for the fund and supporting the World Bank’s presentation to stakeholders and decision-makers in Egypt.
K&M developed the fund’s objectives and designed a range of options for the fund’s structure, management, governance, and operations. Within this scope, K&M evaluated a number of market barriers for renewable energy projects in Egypt. Based on this evaluation, K&M designed and analyzed a number of potential financial instruments which the fund could offer to address these market barriers and help project developers to raise commercial financing. K&M also estimated the fund’s capitalization requirements and the size of its potential operations. K&M produced a concept note and supporting materials to market the concept to government and multilateral stakeholders and potential investors. Following the successful presentation of the concept and its acceptance by key decision-makers, the World Bank proceeded with the fund’s development by conducting a pre-feasibility study and market sounding exercises.