Two global and a regional bank have backed funding for the development of renewables, including hydro power, in Central America.
Under the ‘Areca’ initiative to accelerate renewables development in the region, the trio of banks are supporting projects of up to 10MW capacity.
The banks are the World Bank’s Global Environment facility, the UN’s Development Programme, and the Central American Bank for Economic Integration.
It is hoped that the support will encourage intermediate financial support in the region to help fund power projects. The Central American Bank for Economic Integration is already backing renewables in the region to the tune of US$514M.
The banks’ co-operation reflects increasing concerns over climate change and the rise in funds giving to initiatives to help alleviate the problem. Central America has significant untapped renewables resources, which have been estimated at 36GW.