THE HISTORY OF THE OPEC FUND
Energy sector approvals by region
Representative, the OPEC Fund offered its full support. And again it delivered: From November 2007 to the end of 2016 the OPEC Fund approved more than US$2.9 billion for energy operations in 71 countries. Projects included the construction and rehabilitation of energy infrastructure, institutional strengthening, research funding and the provision of low-cost grassroots solutions. Faris Hasan: “We tried to combine three goals: energy efficiency, involving renewables and supporting the poor.” A joint initiative was launched with the Shell Foundation to enhance access of rural populations to safe, clean and affordable energy. The growing success of renewables as a viable and sound alternative to traditional fuels is also reflected in the OPEC Fund’s sector portfolio: To date, the institution has provided US$4.8 billion in the energy sector, including 71.8 percent in the public and 27.1 percent in the private sector, of which around one- third has been spent on renewables. One example from this period is the Tafila Wind Power Plant in Jordan, first financed by the OPEC Fund in 2013 with US$20 million. The 117 MW facility powers more than 80,000 homes and has cut CO 2 emissions by 235,000 tonnes annually. Samer Judah, Executive Chairman of the developer Jordan Wind Project Company, says: “The Tafila wind
Total approvals: US$4.84 BN
Africa
Asia
Latin America & Caribbean
Europe
Global
Amounts under US$.09 MN may not be reflected in this chart
Energy is an indispensable engine of growth and development and, due to their own history as producers and exporters of fossil fuels, OPEC Fund member countries were highly conscious of the importance of access to energy. The OPEC Fund addressed this challenge head-on and made “eradication of energy poverty” one of its top priorities by launching the Energy for the Poor Initiative in 2008, combining advocacy with project financing. In the following years, the OPEC Fund became one of the driving forces for the recognition of energy access as one of the key development goals: While “energy poverty” was not included in the Millennium Development Goals (2000- 2015), “access to affordable, reliable, sustainable and modern energy for all” was eventually recognized as Sustainable Development Goal 7 under the 2030 Agenda. Operationally, the OPEC Fund converted its initial US$1 billion to Energy for the Poor into a revolving pledge in 2013 and increasingly expanded the scope of its work to include renewable and climate-friendly solutions. Special resources were dedicated to study the energy-water- food nexus under the conditions of climate change and environmental degradation. When the UN declared the period 2014-2024 as the Decade of Sustainable Energy for All with the Sierra Leonean economist, minister and UN official Kandeh Yumkella as Special
“We tried to combine three goals: energy efficiency, involving renewables and supporting the poor.” Faris Hasan, former Director of Strategic Planning and Economic Services, OPEC Fund
The Tafila Wind Power Plant in Jordan powers 80,000 households
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