Informing the Financing of Universal Energy Access: An Assessment ...

ELECTR-5744; No of Pages 26implementation of the project and acommitment to buy a specifiedquantity of CERs (typically at adiscounted price) once they have beenissued. The project participants ownany remaining CERs and can sell themat the market price. Thus an ERPAprovides some initial funding and canserve as security for loans (based onthe revenue from the commitment topurchase CERs). Other possiblesources of foreign funding for theinvestment are: (1) credit provided byforeign equipment suppliers and (2)loans from foreign lenders. So forunilateral projects the sources of thefunds invested are likely to beprimarily domestic, with the mainexception being any initial paymentsunder an ERPA. See Lütken andMichaelowa (2008) for furtherjustification of this assertion.41. UNFCCC (2010).42. Since this article focus on energyaccess the following project types wereexcluded: Agriculture, Cement, CO 2usage, Coal bed/mine methane, EEindustry, EE own generation, EEservice, Forests, Fugitive, HFCs, N 2 O,PFCs, SF 6 , and Transport. For Fossilfuel switch only new natural gaspower plant are included; for Landfillgas, and Methane avoidance onlypower producing projects areincluded (however, the six householdprojects producing biogas for cookingare included).43. This document has been producedwithout formal United Nationsediting. The designations employedand the presentation of the material inthis document do not imply theexpression of any opinion whatsoeveron the part of the Secretariat of theUnited Nations IndustrialDevelopment Organizationconcerning the legal status of anycountry, territory, city or area or of itsauthorities, or concerning thedelimitation of its frontiers orboundaries, or its economic system ordegree of development. Designationssuch as ‘‘developed,’’‘‘industrialized,’’ and ‘‘developing’’are intended for statisticalconvenience and do not necessarilyexpress a judgment about the stagereached by a particular country or areain the development process.26 1040-6190/$–see front matter # 2011 Elsevier Inc. All rights reserved., doi:/10.1016/j.tej.2011.07.006 The Electricity JournalPlease cite this article in press as: Bazilian M, have surnames. Informing the Financing of Universal Energy Access: An Assessment of Current Financial FlowsElectr. J. (2011), doi:10.1016/j.tej.2011.07.006