Financial overview
There has been a steady increase in funds allocated to clean energy activities during recent years, both within multilateral and bilateral development assistance. Total bilateral spending in 2010 was just above NOK 700 million. In addition to this there is the funds utilized by Norfund, which in 2010 amounted to NOK 285 million.
In addition to the bilateral efforts, Norway provides significant funds to clean energy through various multilateral channels. In 2010 approximately NOK 156 million was allocated to energy through multilateral channels. However, overall Norwegian support through multilateral channels is often given as core support, not earmarked for specific sectors. In addition, Norwegian funds might be reported as support to environment (energy being a sub category) although significant shares of the support might be channelled to energy related activities. This implies that the figure mentioned above, and the figures illustrated below, represent an underestimation of the total Norwegian allocations to clean energy activities within development assistance.
Figure 1 illustrates bilateral assistance to clean energy over the period 2005 to 2010. The increased allocation to clean energy over the years is clearly visible, as is also the importance of funds invested by Norfund within the Clean Energy for Development Initiative. During the 6 year period from 2005 until 2010 a total of approximately NOK 5.7 billion was allocated bilaterally to development cooperation on clean energy.
Figure 2 – illustrates the division of funds allocated through Bilateral vs. Multilateral channels over the period from 2005 to 2010. In light of the above elaboration it is again stressed that the multilateral portion is significantly underestimated. However the figure shows a general trend of increased support to energy also in our multilateral efforts.
Figure 3 shows development assistance to clean energy by type of assistance. The core of the Norwegian support is directed towards energy policy and administrative planning, power generation (renewable sources) and electricity transmission and distribution. Continued focus on support to these sectors over the years are a result of this being areas where Norway holds special expertise, and where it is believed that Norwegian support can contribute to making a difference. Support to energy policy and administrative planning is furthermore believed to be important for creating a framework in which the energy sector can prosper, and for attracting private investments.
Figure 4 illustrates how the Norwegian assistance is distributed between regions covered by the Clean Energy for Development Initiative. Remaining allocations are illustrated as ‘global’. Africa is the biggest recipient of Norwegian development assistance within clean energy.
Figure 5 illustrates the division of funds allocated to the seven core countries in the Clean Energy for Development Initiative. Tanzania was the country receiving the largest allocation of funds in 2010.