Photovoltaic Market Transformation Initiative (IFC)

PVMTI is a strategic intervention to accelerate the sustainable commercialization and financial viability of PV technology in the developing world, especially for rural electrification. PVMTI will make selected investments in private sector PV market development projects received in response to a competitive solicitation, providing them with appropriately structured concessional financing in the range of $0.5-5 million. Additional co-financing of $60-90 million by project sponsors and other sources (including commercial banks) is expected to result in total project investment of $85-115 million. The project will be administered by the IFC through an external management agent. Projects will be selected based on their strategic impact in overcoming the barriers and transforming the PV market in a manner consistent with GEF policy and the objectives of Operational Program #6. In terms of reducing and overcoming barriers to building PV markets, the private sector is considered the best agent to catalyze investment and business activity, and PVMTI’s solicitation and selection approach provides a competitive element that is expected to maximize financial leverage and deliver sustainable and replicable near-commercial projects by providing successful and replicable examples of good business and technical practices