The International Renewable Energy Agency (IRENA) and the Central American Bank for Economic Integration (CABEI) are joining forces to support renewable energy financing in Central America.

They have signed a memorandum of understanding to work closely to facilitate the deployment and financing of bankable renewable energy projects across the region.

According to a report from IRENA, building a portfolio of bankable renewable energy projects is an “immediate regional priority”, with renewables required to make up 75% of the region’s power mix by 2030 and grow three-fold by 2050 to achieve climate targets.

It also finds the integration of additional renewable capacity feasible, considering the competitive generation costs and declining cost trends for the main renewable technologies installed in the region – hydropower, onshore wind and solar.

IRENA and CABEI will explore co-operation activities to scale up renewable energy investments, promote capacity building activities and exchange knowledge on the investment needs for Central America’s energy transition.

IRENA Director-General Francesco La Camera said: “A renewables-based energy transition carries with it great promise for Central America.

“As the region’s population continues to rapidly grow, so does its need for greater investments in resilient and reliable energy resources that can ensure energy access, meet climate objectives and support economic progress. We are proud to collaborate with CABEI.”