The availability of well structured financial resources is the key factor for successful implementation of an energy efficient project or a renewable energy project (herein after referred as sustainable energy (SE) projects). This paper is focused on description of prerequisites for successful cooperation between financial institutions (banks) and developers of sustainable energy projects, particularly on those characterized as SMEs. The purpose of this paper is (i) to determine, whether there are any barriers against proper functioning of such cooperation and (ii) to propose methods or ways to overcome them. The paper also introduces strategies of IFC, the member of World Bank Group, which have been used for successful implementation of many projects around the globe, while overcoming the above mentioned barriers.

The paper consists of three main parts. The first chapter describes theory of SME financing from perspective of the client, whilst second chapter outlines position of the commercial financial institutions to the same issue. Experience of IFC with SE financing is shown in the third chapter, where the paper describes market reality using example of successfully implemented financing program and surveys. The paper is concluded by summary of the World Bank activities in the SE financing area.