Glossary of terms
Avoided greenhouse gas emissions
The amount of emissions, in tonnes of carbon dioxide equivalent (tCO2e), which would have been created to generate the same amount of electricity produced by a REPP-financed renewable energy project if fossil fuels had been used. It is calculated by multiplying the number of MWh generated (or forecast) by the project with the country’s grid emissions factor, which is itself calculated as total tCO2e divided by total MWh generated.
Local, national or transnational financing that is drawn from public, private and alternative sources of financing and which seeks to support mitigation and adaptation actions that will address climate change.
The total value of funding committed by REPP to contracted projects.
A single home or workplace that is served with electricity from an off-grid renewable energy project. For standalone systems, such as solar home systems, one installation equals one customer, whereas a mini-grid is connected to several customers. See also: New connections
Energy that is generated away from the main grid and close to where it is used. Includes small-scale renewables such as solar, biomass, geothermal and wind.
Defined by the International Energy Agency as “a household having reliable and affordable access to both clean cooking facilities and to electricity, which is enough to supply a basic bundle of energy services initially, and then an increasing level of electricity over time to reach the regional average”.
Environmental and Social Impact Assessment (ESIA)
A process of predicting and assessing a project’s potential environmental and social risks and impacts.
Environmental and Social Management System (ESMS)
A set of policies, procedures, tools and internal capacity to identify and manage a financial institution’s exposure to the environmental and social risks of its clients/investees.
Financial resources committed by third parties to a project being supported by REPP.
For grid-connected projects, refers to the stage when all the conditions precedent of the financing agreements enabling the construction of the project have been fulfilled prior to the initial availability of funds. For off-grid projects, it is the stage when all of the conditions precedent related to the construction or operation phase of the project that is receiving REPP support are fulfilled.
First-time energy access
Any person or business being connected to an electricity supply for the first time as a direct result of an off-grid renewable energy project. See also: New connections, Customer
International Climate Finance (ICF)
The UK government’s commitment to building resilience and catalysing low carbon transition in developing countries. In September 2019, the UK’s ICF was doubled from £5.8bn in the previous five years to at least £11.6bn from 2021-2025.
Independent power producer (IPP)
A private entity that generates electricity for sale to utilities and end users.
The rated power output, in MW, of a power plant or other electricity generator when operational. Also known as nameplate capacity and rated capacity.
A mini-grid with a capacity of over 1MW.
The number of people connected to an off-grid renewable energy project. It is calculated as the number of customers served by the project multiplied by the average number of people per household, which is deemed to be five persons. See also: Customer
A project is considered new when an investee enters into a support agreement with REPP. An existing project can be considered new if the scope of the project is extended in terms of installed capacity (≥ 20%), geographical scope (new country) or, in the case of off-grid projects, change in the principal nature of the business model in comparison to that in the original support agreement. See also: Project
Not connected to a centralised high voltage electricity grid.
A conversion of light into electricity using semiconducting materials, typically contained in solar panels.
Power purchase agreement (PPA)
A contract in which a purchaser agrees to purchase and a supplier agrees to supply electricity generated in the future, normally at a specified price for a defined period.
A project or portfolio of projects owned by an investee (or affiliate) that has executed a REPP Support Agreement. On-grid projects are individual projects, whereas off-grid projects, such as solar home systems or mini-grids, typically combine a portfolio of installations together as one project. To be eligible for REPP support, a project needs to have an installed capacity range of 1-25MW, except for wind projects, which may be up to 50MW. See also: New project
Financing from non-public sources, including private banks, private companies, private or company pension funds, insurance companies, private savings, family money, entrepreneurs’ own capital and sovereign wealth funds. It includes all types of funding such as equity, debt and guarantees.
Financing from official (i.e. government) sources.
Any entity approved by the Board as such. A REPP partner can be a finance provider, risk mitigation provider or technical assistance provider.
Risk mitigation instruments
Instruments, typically in the form of guarantees or insurance, that transfer specific risks from one party to another.
A system of hydroelectric power generation through which running water is diverted from a river and guided along a channel, or “penstock” to a generating house, before being returned to the river downstream.
Sustainable Development Goals (SDGs)
A collection of 17 global goals adopted by all UN Member States in 2015 with a vision of ending poverty, protecting the planet and ensuring that all people enjoy peace and prosperity. The target year for achieving all SDGs is 2030.
Various types of non-financial assistance, including instruction, skills training, transmission of working knowledge, and other consulting services.