Focus On Small Island Developing states
Small Island Developing States (SIDS) are often highly dependent on imported petroleum products to meet their energy needs, including electricity generation. As a result many SIDS experience high and often rising costs for electricity, supply interruptions, as well as vulnerability to oil price shocks. Many SIDS are now looking to transition to more sustainable energy sectors, where improved energy efficiency and renewable energy play an increasing role.
SIDS DOCK is an initiative among member countries of the Alliance of Small Island States (AOSIS) to help SIDS transform their energy sectors and address adaptation to climate change.
SIDS-DOCK Support Program
To help meet these challenges, ESMAP joined with the United Nations Development Program (UNDP), AOSIS, and the Government of Denmark to establish the SIDS DOCK Support Program in 2011. The program provides grants to SIDS DOCK members focusing on two outcomes:
Creating an enabling regulatory and institutional environment to remove barriers on the implementation of renewable energy and energy efficiency policy reforms, based on international best practices.
Implementation of renewable and energy efficiency projects that demonstrate the potential for scale-up through climate finance and other sources of funding.
In September 2011, the Government of Denmark approved a contribution of DKK 38,400,000 to the SIDS DOCK Support Program Multi-Donor Trust Fund (MDTF) to be administered by ESMAP (SIDS DOCK MDTF). Under the Program, ESMAP provides grants to SIDS DOCK members to support analytical and advisory activities, as well as some investments, for their Renewable Energy (RE) and Energy Efficiency (EE) initiatives. In 2013, Japan has transferred to the World Bank an initial tranche of US$ 9 million for the second tranche of ‘recipient-executed’ projects of the Support Program.
Projects in Seychelles, Mauritius and Sao Tome & Principe funded by the SIDS DOCK Support Program have already been completed along with four global Bank-Executed learning projects and a knowledge exchange event in Vienna, Austria. The current portfolio consists of 10 current and future projects in the Pacific, Caribbean and AIMS regions funded by the Japanese tranche and a carry-over from the Danish allocation. The projects have been selected in accordance with the proposed project’s fit with the country’s energy roadmap, alignment with World Bank country and regional programs, project readiness, and scale.