OPIC and Renewable Energy

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OPIC Highlights

Office of External Affairs

1100 New York Avenue, NW

Washington, DC 20527

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www.opic.gov

OVERSEAS PRIVATE INVESTMENT CORPORATION

OPIC is working to reduce greenhouse gas emissions in OPIC­supported projects by 20 percent in the 

next ten years and shift emphasis

to renewable and energy­efficient 

projects, according to a new initiative announced in 2007.

To meet the portfolio reduction target of the OPIC Greenhouse Gas

Initiative, OPIC is establishing an 

annual emissions cap for all new 

greenhouse gas emissions in OPIC

supported projects to which the 

agency provides a commitment. The cap will be equivalent to the 

emissions from projects committed 

to by OPIC in fiscal year 2007,

which is approximately three million tons CO2eq* per year. If met 

the goal will result in a reduction 

in emissions of more than 10 million tons of CO2eq per year by 

2016.

On a project basis, OPIC is working with the private sector to 

encourage U.S. investment in 

renewable energy and energy efficiency improvement projects

through the application of marketbased incentives. OPIC is considering emission reduction alternatives

for all OPIC­supported projects,

including opportunities to enhance 

energy and operational efficiency; 

and the application of new technologies for the capture, storage

and recovery of greenhouse gases.

OPIC Supports Renewable

Energy Investment Fund

for Emerging Markets

OPIC has launched a call for proposals that will result in up to $500 

million in financing to new private 

equity investment funds designed to 

invest in companies or projects in 

the renewable energy sector in 

emerging markets worldwide – the 

first OPIC­supported investment 

fund of its kind and the latest agency initiative to support renewable 

energy development. Through a competitive selection 

process, OPIC will choose fund 

managers with the best strategies for

identifying optimal investments in 

renewable energy projects. Such 

investments could include solar 

thermal; wind power; small hydroelectric; geothermal; and biomass,

including energy from waste.

In addition, the fund could also 

invest in related sectors in the field 

of energy and environmental sustainability, including energy efficiency systems and equipment, and 

water, waste and emissions control

and treatment. OPIC will consider 

proposals from funds focused globally, or regionally in OPIC­eligible 

countries in Asia, Eurasia, Central 

Asia, the Middle East or Latin 

America. OPIC participation in any 

single fund would be limited to 

$100 million, or one third of the 

capital per fund.

For more information, visit 

www.opic.gov/investment/propos­ als/index.asp 

In the fourth part of the initiative, 

OPIC is working to enhance its 

accounting and reporting on greenhouse gas emissions, and on renew­ 

able energy and energy efficiency in 

the OPIC annual environmental 

report. Instead of aggregate emis­ sion reporting, OPIC will report the 

annual emissions of each OPIC­supported project with significant 

greenhouse gas emissions as well as

the projects emissions from major

emitting projects receiving an OPIC

commitment during that year.

“A key part of the U.S. government’s work in developing a multilateral approach to climate change is

to support policies and projects that 

help developing countries to meet 

their energy needs in the most environmentally responsible manner,” 

OPIC President and CEO Robert 

Mosbacher, Jr said.

*Carbon dioxide equivalents (CO2eq) is a 

metric measure used to compare the emis­ 

sions from various greenhouse gases based 

upon their global warming potential

(GWP). The carbon dioxide equivalent for

a gas is derived by multiplying the tons of

the gas by the associated GWP. For exam­  ple, the GWP for methane is 21 and for

nitrous oxide 310. This means that the

emissions of 1 million metric tons of

methane and nitrous oxide respectively are

equivalent to emissions of 21 and 310 mil­ 

lion metric tons of carbon dioxide.

OPIC Greenhouse Gas Initiative Aims to Cap Emissions 

on New Projects, Shifting Emphasis to Renewable

Energy

Goal to reduce emissions by 20 percent in ten years;agency to enhance project accounting and reporting
U.S. Small Business Uses

OPIC Insurance to Install 

Two Wind Turbines in

India

Backed by OPIC political risk 

insurance, a U.S. small business has

now invested more than $1 million,

to install two separate wind turbines

in India. These turbine projects

support efforts by Indian authorities

to encourage private investment in 

electricity generation and distribution, especially from non­conventional sources, including wind.

OPIC has provided $450,000 in 

insurance to Southern Energy 

Partners, LLC (“SEP”) of

Memphis, Tennessee for the installation of a 250­kilowatt wind tur­ bine on a wind farm near Keral village in Maharashtra State. That 

investment was made through 

SEP’s local subsidiary, SEP Energy 

India, and the electricity generated 

by the turbine is sold to the 

Maharashtra State Electricity 

Distribution Company to provide 

electricity to largely rural areas in 

the state. A local manufacturer will 

produce the turbine. OPIC also provides $450,000 in insurance to SEP 

for installation of a similar­type 

wind turbine in Tamil Nadu State in 

India.

March 2008

OPIC Board Approved Insurance to Upgrade Hydroelectric Facilities in Colombia

The OPIC Board of Directors approved political risk insurance to cover $212 million in financing for a project to 

upgrade five power facilities in Colombia, which is significantly increasing that country’s electricity generation and 

helping to open the government­controlled power company to equity investment by the private sector. The $212 million OPIC­insured facility, together with a $38 million uninsured facility both arranged and underwritten by Citigroup, is provided to ISAGEN, a leading Colombian power company whose majority shareholder is the 

Colombian government. The loan is being used largely to help ISAGEN modernize and maintain its San Carlos, Jaguas and Termocentro facilities, rehabilitate the Calderas hydropower plant, and begin the construction of the 

Amoya power facility, enabling Colombia to increase its generating capacity and reduce power outages.

OPIC is a U.S. government agency that helps U.S. businesses invest overseas, fosters economic development in new and 

emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports

U.S. foreign policy. Because OPIC charges market­based fees for its products, it operates on a self­sustaining basis at no net

cost to taxpayers. Since 1971, OPIC has supported more than $164 billion worth of investments that have generated over $69 billion in 

U.S. exports and supported more than 264,000 American jobs. For more information please go to www.opic.gov.

OPIC Financing and Insurance

Support Construction of

Hydro Power Plant in Sri 

Lanka

OPIC is providing financing and political 

risk insurance to support construction of a 

hydroelectric power plant in Sri Lanka

that will help the country meet growing 

demand for electricity and is consistent 

with the Sri Lankan government’s effort 

to attract greater private investment in the 

power sector. OPIC President and CEO 

Robert Mosbacher, Jr. stated that 

“Construction of this hydroelectric plant 

will not only help Sri Lanka meet its 

growing demand for electricity, but do so 

in an economically efficient and environmentally friendly way that illustrates the 

Sri Lankan government’s success in 

attracting private sector investment to the 

industry.” 

For this project, OPIC is providing a $4.3 

million loan to the project company, MaTh Hydro Power, which is construct­ 

ing a 5 MW hydro power plant on the 

Weli River in south­central Sri Lanka, approximately 120 kilometers from 

Colombo, the capital. South Asia Energy 

Management Systems, a small business

based in California, is the sponsor of this 

project. OPIC is also providing $1.4 million in political risk insurance to Zurich 

Emerging Market Solutions for Zurich’s

coverage of the project.

OPIC Board Approved

$300 Million Lending

Facility for Energy Efficiency Projects

OPIC’s Board of Directors has

approved $210 million in OPIC

guarantees for a $300 million 

lending facility to support energy 

efficiency and clean energy projects worldwide, as part of

increasing U.S. government support for international efforts to 

reduce greenhouse gas emissions. With encouragement from the 

U.S. Department of Energy 

(DOE) and the OPIC guaranties,

the American International 

Group, Inc. (AIG) will administer 

the lending facility consistent 

with the Bush Administration’s

goals to support clean energy 

investments, reduce greenhouse 

emissions and ensure access to 

affordable, reliable, clean and 

efficient energy services in devel­ 

oping areas around the world.

The Facility will be used to support energy efficiency and perfor­ mance upgrades to refineries, petrochemical plants, pipelines, and power generation plants, as

well as renewable and alternative 

energy projects.