Innovative Financing for Humanitarian Energy Interventions
The Moving Energy Initiative (MEI) is an international consortium seeking to sustainably increase access to energy for displaced people and to improve how energy is dealt with in humanitarian situations. One of the challenges that has repeatedly emerged in the MEI’s research is the lack of funding available for humanitarian energy interventions, and the need for innovative approaches to fill the funding shortfalls.
As a result of this, the MEI looked into the idea of setting up a dedicated humanitarian energy fund to provide capital to projects aiming to improve energy access and management in displacement settings, with a focus on mechanisms that could attract private-sector participation. While this fund was never actualized, valuable insights were gained from completing the feasibility work. Findings from this process are presented in this research paper, alongside a discussion of the current challenges of financing energy interventions and the associated investment risks.
The paper also introduces potential mitigation instruments for the private sector and makes recommendations for their design. The aim of this paper is to inform donors, financiers, practitioners and policymakers interested in better addressing the funding needs of, and understanding the associated support required by, this sector.
Authors: Yaron Cohen and Laura Patel, Energy 4 Impact