B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y

Transcription

1 "INOGATE Technical Secretariat & Integrated Programme in support of the Baku Initiative and the Eastern Partnership energy objectives" Project B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y

2 EE / RES Technologies and business in Armenia AHEF AM.093 WORKSHOP: Capacity building for financing of EE / RES projects January 14-18, 2014 Yerevan, Armenia Vahan Babajanyan EE / RE Source Financial Training & Research Expert, INOGATE TS

3 1. BUSINESS in the field of ENERGY EFFICIENCY and RENEWABLE ENERGY SOURCES

4 ENERGY: KEY PLAYERS ENERGY PRODUCTION GENERATION REGULATOR ENERGY SUPPLY ENERGY COMSUMPTION

5 ENERGY SECTOR PRESENTATION Energy Industry & Technologies Energy forms and sources Energy Efficiency Business Renewable Energy Business Bank s Interest

6 BUSINESS in the FIELD of EE and RES ECONOMIC REFORMS POTENTIAL for ENERGY SAVING (ES) PROVEN TECHNOLOGIES ENERGY BUSINESS REALSITIC COSTS ENERGY LEGISLATION Tariff Policy Regulatory Acts Governments, International Donors, IFIs MACRO MICRO SME, LFIs, Equipment Manufacturers, Consumers

7 ENERGY EFFICIENCY: BUSINESS and FINANCIAL INSTITUTIONS ANY upgrading has an element of EE and ES Huge EE/ES market in the CIS International EE/ES projects Engineering, Audits, ESCO Forms of Financing Risk Management Outsourcing Energy Efficiency is MESSAGE to the BANK A priority of global energy policy

8 MESSAGE to the BANK RES: BUSINESS and FINANCIAL ISTITUTIONS Globally, RES investments are growing exponentially (very rapidly) 22 bln bln RES Investments > FES Investments 2013 ESTIMATES Over 300 bln BIOFUEL

9 ЕЕ / RES BUSINESS FINANCIAL INSTITUTION PROJECT OWNER CONTRACTOR NETWORK OPERATOR TECHNOLOGY SUPPLIER RES PROJECT CONSULTANT PLANT OPERATOR ENERGY BUYER

10 ЕЕ / RES BUSINESS VENTURE FUNDS INFRASTRUCTURE FUNDS Additional Issue Operating Assets BANK, LFI RES PROJECT EQUITY FUNDS / CAPITAL GRANTS PENSION FUNDS DIRECT INVESTMENTS BIOFUEL

11 ЕЕ / RES BUSINESS VENTURE FUNDS DIRECT INVESTMENTS INFRASTRUCT. FUNDS PENSION FUNDS High Risks PBP 4 7 years IRR % Risk Management PBP 3 4 years IRR over 25% Low Risks PBP 7 10 years IRR over 15% Low Risks PBP years IRR 10-15%

12 EE / RES FINANCING: SPECIFIC and DISTINCTIVE FEATURES BIG CAPITAL INVESTMENTS LONG PAYBACK PERIOD LONG PROJECT IMPLEMENTATION PERIOD ACTIVE ROLE of the REGULATOR WIDE RANGE of RISKS

13 2. TECHNOLOGIES in the field of ENERGY EFFICIENCY and RENEWABLE ENERGY SOURCES

14 ENERGY FORMS Mechanic Energy Electricity Thermo Energy Light Chemical Energy Bio Energy Nuclear Energy

15 ENERGY EFFICIENCY: BUSINESS Cogeneration IT control TECHNICAL SOLUTIONS / TECHNOLOGIES Secondary using of energy Pressed air Lighting Thermo pumps Pipe line insulation Air conditioning & ventilation

16 RENEWABLES: BUSINESS Hydro Power Plants Wind Farms BIOFUEL Solar Power Plants Biogas Plants Biofuel Production Geothermal Plants

17 ENERGY EFFICIENCY: COMMERCIAL AND RESIDENTAL BUILDINGS CONSTRUCTION MATERIALS Walls & Roof Insulation Duplex & Triplex Dark screening slide using Draught coverage

18 ENERGY EFFICIENCY: COMMERCIAL AND RESIDENTAL BUILDINGS LIGHTING Lighting control system Daylight illumination control system Max use of daylight illumination Use of efficient lamps

19 ENERGY EFFICIENCY: COMMERCIAL AND RESIDENTAL BUILDINGS HEATING, VENTILATION AND AIR CONDITIONING Pipe line insulation Thermo pump installation Natural ventilation system Secondary using of energy CO 2 control system installation

20 ENERGY EFFICIENCY: COMMERCIAL AND RESIDENTAL BUILDINGS IT CONTROL EMS Energy Management System Central Coordination System Local Systems network Simultaneous Control

21 20% of energy / power consumption ENERGY EFFICIENCY: TRANSPORT 98% of energy consumption in transport is non-renewable! TRANSPORT IS THE FIRST ENEMY OF ECOLOGY!

22 INVESTMENT DIRECTIONS Public transport system Improve railway network Improve seaport and river port system Multi transport links creation Engines on the base of new technologies Possible solution Bio fuel!!! ENERGY EFFICIENCY: TRANSPORT

23 3. ARMENIA: POLICY and OBJECTIVES in ENERGY EFFICIENCY and RENEWABLE ENERGY SOURCES

24 Ministry of Energy and Natural Resources Ministry of Economy Ministry of Territorial Governance Ministry of Transport and Communications State Energy Inspection Public Services Regulation Commission SUSTAINABLE ENERGY: RESPONSIBLE Institutions управления

25 ENERGY EFFICIENCY: IFI s FINANCING and PROGRAMMES EBRD / ArmSEFF, SE, 20 m $. KFW, RES, 18 m $ (40 m $). IFC, RES/sHPPs crediting, 15 m $ WB, RES/sHPPs crediting, 5 m $ Austrian Development Bank, SE, 15 m $ FMO, DDB, crediting SE, 5 m $ RES and EE Fund (R2E2) SE, ( ) m $

26 LAWS On Energy, March 07, 2001 SUSTAINABLE ENERGY: LAWS and POLICY On Energy Saving and Renewable Energy, November 09, 2004 On State Technical Control in energy and energy consumption, December 14, 2004 POLICY Strategy of development of the energy sector in the context of economic development of Armenia, June 23, 2005 National Programme on Energy Saving on Renewable Energy, 2007 Strategy of Closing of Armenian NPP Strategic Programme of development of the hydro energy sector in Armenia

27 RENEWABLE ENERGY SOURCES LARGE HPPs HYDRO ENERGY Megri HPP, 130 MW, 800 m kwh, Arax River Shnokh HPP, 75 MW, 300 m kwh, Debet River Lori Berd HPP, 66 MW, 200 m kwh, Dzoraget River SMALL HPPs By July 1, small HPPs, 237 MW, Production in m kwh, 7%

28 RENEWABLE ENERGY SOURCES WIND ENERGY Wind Energy Potential up to 450 MW First wind farm 2.6 MW - Pushkin Gorge, December Total potential of that site up to 20 MW. SOLAR ENERGY Average Solar radiation kwh / sqm AUA Solar thermal power - 50 kwh and photovoltaic power up to 5 kwh БИОГАЗ Annual potential of biogas production mln m 3 Annual reduction of CO 2 emissions not less than t (Shimizu Corporation / Nubarashen Solid Waste Landfill Gas Capture and Power) GEOTHERMAL ENERGY Hot water (up to 250 C) at a depth of m Potential up to 25 MW

29 1. Incentives for Energy Savings 2. Institutions of stimulating EE and RES 3. Establishment of favourable investment climate 4. Easing taxes 5. Development and introduction of new technologies 6. International cooperation 7. Clear legal framework predictable methods of regulation EE and RES POLICY: State Support

30 ENERGY EFFICIENCY: Three priorities for stimulation By to reach the energy saving parameters compatible with the European ones: Organisation and governance By 2018 to ensure the quality level of energy savings : technologies and materials By to reach the GDP energy intensity indicators compatible with the European ones

31 Favourable depreciation regime Modernisation / change of equipment Tools for easier crediting Utilization of leasing mechanisms Attraction of cheap credit funds ENERGY EFFICIENCY: Investment Policy

32 THANK YOU!!! Feel free to visit our Web portal: Vahan Babajanyan EE / RE Source Financial Training & Research Expert, INOGATE Technical Secretariat bsvahan@mail.ru