The Renewable Energy and Energy Efficiency Partnership (REEEP) is a Vienna-based international organisation (link in German) that advances markets for renewable energy and energy efficiency with a particular emphasis on the emerging markets and developing countries. Its primary focus is in de-risking and scaling up clean energy business models.
REEEP was originally launched by the government of the United Kingdom, along with other partners, at the Johannesburg World Summit on Sustainable Development (WSSD) in August 2002.
Origins
In 2002, accelerating the development of renewable energy and energy efficiency technologies was one of the priorities of a large group of countries at the WSSD. Margaret Beckett, then UK Minister for the Environment announced the initiative to form REEEP at the summit's closing session. It grew from an agreement with other committed governments, businesses and NGOs to deliver WSSD commitments others, in particular to take forward the key recommendations of the G8 Renewable Energy Task Force.
From January 2003 until May 2004, the REEEP was housed within the UK Foreign and Commonwealth Office (FCO) where it continued following the UN Type II Partnership process of stakeholder consultation. In June 2004, REEEP obtained formal, legal non-profit status as an international NGO and has since been located at the UN complex in Vienna, Austria. In 2016, REEEP was granted status as a quasi-international organisation in Austria, along with four other organisations.
Business model
It pursues its market catalyst role via an approach it calls "Invest – Learn – Share":
Invest
A typical REEEP Invest-Learn-Share effort begins with a country or regional level analysis to determine market gaps and opportunities for clean technology deployment; a stakeholder landscape to understand key players and influencers; and an assessment of medium to long-term (5 to 15-year) market potential for delivering climate and sustainable development outcomes. These assessments are synthesised into a project strategy outlining technology and sector targets; investment vehicles and volumes; policy and regulatory considerations; ecosystem stakeholders and evidence requirements; and engagement strategies.
The investment solicitation and selection process begins once capitalisation has been secured through donor agreements. The process is typically launched via a call for proposals. Specifics of the call are adaptable, and depend on the realities of the market, as well as upon timing and administrative requirements of donors and local stakeholders. In some cases, multiple capital pools may be combined into a single call for proposals; in other cases, beneficiaries are identified through recommendations from expert networks and approached on an ad hoc basis.
In those cases where capitalisation is provided through a debt-issuing revolving fund, smaller calls for proposals may be issued as the fund is recapitalised by loan repayments. These innovative vehicles represent a promising new approach to growing investment in sectors that have fallen through the finance cracks due to ticket sizes (too large for microfinance, too small for private equity or commercial debt).
As part of a proposal SMEs are required to submit an application form, including a draft business plan, demonstrating their ability to provide a viable, clean technology-based product or service to a market in a least developed country (LDC) or middle-income country (MIC). SMEs are challenged to demonstrate how a business plan will lead to certain outcomes connected to REEEP's core principles: reducing the effects of climate change and building local prosperity. In some cases, these outcomes may be integrated into the selection processes as specific procurement objectives, allowing for results-based financing.
After initial application and due diligence process, successful applicants develop a strategic plan incorporating a stakeholder analysis, key activities, outputs and outcomes, benchmarking and key performance indicators (KPIs), and contingency planning, among other elements.
This strategic plan forms the basis of entry as a project investment. Throughout its work, REEEP uses Results-Based Finance methods to verify project progress.
Learn
REEEP utilises a mixed methodology approach to monitoring, evaluation and learning designed to handle the complexity of the situations our investments face on the ground and the multiplicity of stakeholders involved, and to manage the various types and volumes of information flowing in and out of the project environment.