KfW supports Mexico's energy transition: new funding to expand renewable energies and energy efficiency

• Two loans to Bancomext for EUR 168 million
• Another EUR 50 million for energy-saving houses (EcoCasa)

During President Enrique Peña Nieto's official visit to Berlin, KfW, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), signed financing agreements with Mexican development banks in a total amount of roughly EUR 220 million. In doing so, KfW is helping Mexico reach its ambitious climate protection goals. The three loans are intended to boost the development of renewable energies and energy efficiency in Mexico.

Two loans come out to EUR 88 million and EUR 80 million and will go to the Mexican development bank Banco Nacional de Comercio Exterior (Bancomext) to finance wind power, small hydropower stations, biomass and solar power facilities. The country has good conditions for nearly all types of renewable energy and still has largely untapped potential, especially for solar energy, wind power, biomass and geothermal energy. The loans that will ultimately go to private project developers on favourable terms are intended to create incentives to further develop climate-friendly energy technologies in Mexico.

The Mexican development bank Sociedad Hipotecaria Federal (SHF) will receive another loan agreement worth EUR 50 million in order to finance a second phase of EcoCasa. The eco-house programme has been under way since 2013. It has won a number of international awards and has resulted in a total of nearly 12,000 "green" housing units for low and middle-income households. The programme is now being renewed as a result of its considerable success. This means, in turn, that thousands of energy-efficient houses and apartments will be created in Mexico with energy consumption at least 20 per cent below the national average.

“With this funding, KfW is supporting Mexico in its ambitious goal of lowering greenhouse gas emissions by at least 22% from 2000 to 2030 and, at the same time, improving its energy supply,” said Dr Norbert Kloppenburg, member of the Executive Board of KfW Group. “This funding will make it easier to launch not yet established renewable energy technologies on the market and help overcome obstacles to investment,” Dr Kloppenburg explained.

Further information on KfW Development Bank is available at

www.kfw-entwicklungsbank.de