Renewable Energy Project Financing in Mexico. November 2015

Transcription

1 Renewable Energy Prject Financing in Mexic Nvember 2015

2 ELECTRIC GENERATION FROM RENEWABLE SOURCES Slar Ttal 2014 Hydrelectric Ptential 2020: 5,962 MW 16,921 Ptential 2020: 6,300 MW 48,530 Ttal Ptential: 6,000 MW Ttal Ptential: 18,300 MW The nrthwest has ne f the mst slar radiatin intensity area in the cuntry. Cnventinal Energy Clean Energy Mexic has hydrlgical resurces fr large and mini hydrelectric facilities. Gethermal Ptential 2020: 10,000 MW Wind 2,448 Ptential 2020: 20,000 MW 1, Ttal Ptential: 10,965 MW Ttal Ptential: 21,370 MW Vlcanic axis with huge gethermal ptential. The Istm wind surce reaches up t 40% net capacity factrs. Surce: SENER/Secretaría de Energía. REN 21/ Renewable Energy Plicy Netwrk fr the 21st Century.

3 PROJECT FINANCING Since 2010, Nafin has set a credit ffer fr sustainable prjects. Fcused n large-scale prjects (mre than ~30 millin dllars per prject). Case by case analysis, generating tailr-made structures. Partnerships with cmmercial, develpment, natinal and internatinal financial institutins (e.g. club deals, syndicatins). 9 Windfarms 1,605.1 MW 1 Slar PV farm 38.6 MW 1 Mini-hydr 28.8 MW Renewable Energy Prgram. CTF US$ 70 millin IDB US$ 370 millin Ttal Funding US$ 440 millin Nafin US$ 798 millin Nafin's Prtfli. US$ 6 billin. Ttal investment; 2.8 GW installed capacity. 6.4 millin annual average CO2 tns emissins avided (nce at full peratin). 2 Cgeneratin plants 1,150 MW Sep-2015 Figures updated t September 2015

4 DEVELOPMENT OF NEW FINANCING SECTORS: GEOTHERMAL ENERGY Mexic is the furth cuntry in wrld in gethermal capacity prductin. The Federal Electricity Cmmissin has 958 MW f installed capacity in fur gethermal plants, which generate 3.3% f ttal electricity in the cuntry. Gethermal Plant Lcatin Start f peratins Actual capacity (MW) Wrk in prgress (MW) Cerr Priet Baja Califrnia Ls Azufres Michcán Ls Humers Puebla Tres Vírgenes Baja Califrnia Sur Cerrits Clrads Jalisc 25 Ttal Gethermal fields in Mexic Viable: prven and ecnmically viable technlgy. Efficient: supply security (base lad pwer). Clean: CO 2 emissin reductin. Ecnmy: lw prductin cst (US$ 0.04 t 0.10/ kwh). Ptential in Mexic: 10-11GW (Nrth - Central, the best areas). Surce: Wrld Bank

5 Financial secured instrument fr early stage explratin. NAFIN, CTF, IDB and SENER are wrking tgether n the design and implementatin f a secured instrument fr the explratry drilling phase, that culd be extended up t prductive drilling. NAFIN channels the funds f the prgram and applies its wn resurces n a case by case basis, depending n prject risk. EXPLORATORY DRILLING FINANCING I, fr t drill up t 3 explratry wells. Ok? N Yes DRILLING FOR PRODUCTION FINANCING II, t drill up t 3 PRODUCTIVE wells. Ok? N Yes PLANT CONSTRUCTION AND OPERATION FINANCING III, fr Gethermal Central's EPC & BOP. Prgram's Surces and applicatins f Funds. Technical Assistance Surce US$ Millins CTF 2.8 Early Explratin Surce US$ Millins SENER 11.5 CTF 20 TOTAL 31.5 NON-REFUNDABLE 28.60% SUPPORT Prductive Explratin Surce US$ Millins BID 54.3 CTF 31.5 TOTAL 85.8 LOANS 71.40% I Debt Repayment II Debt Repayment GEOTHERMAL INVESTMENT FACILITY (FIG) III Debt Repayment TOTAL 100.0% Prgram's Ttal Surce US$ Millins % SENER % BID % CTF % TOTAL % 5

6 CHALLENGES AND OPPORTUNITIES: THE MEXICAN ELECTRIC MARKET 2016 With the recently passed cnstitutinal refrm, Mexic, fr the first time in decades, is fully pening il, gas, and pwer sectr t freign and lcal investrs. In line with internatinal experience, energy refrm will strengthen the independence and cmpetitiveness in the system, especially in intercnnectin capacity f new prjects and the creatin f a whlesale pwer market. Lng-term cntracts will play an imprtant rle t reduce the risk f investments. The current Mexican regulatry framewrk establishes the gal f achieving 35% f electricity generatin thrugh nn-fssil surces by Nwadays this share is arund 25%.

7 NAFIN'S COMMITMENT TO SUSTAINABILITY: GREEN BOND BE THE AGENT OF CHANGE THAT ACCELERATES AND LEVERAGES THE ENERGETIC DEVELOPMENT OF THE COUNTRY. On Octber 29 th 2015, NAFIN issued the first Mexican Green Bnd in the internatinal markets. Ratinale fr a Green Bnd: Cmmitment f Mexic t be active in the develpment f climate change. Prmte the transitin t a lw carbn ecnmy. The net prceeds f the issue f the Bnd shall be used t fund renewable energy prjects such as wind, slar and any ther prjects related t climate, clean energy r green prjects. NAFIN s Green Bnd fllws the guidance f Green Bnd Principles NAFIN s Green Bnd apprach has btained a psitive third party review frm Sustainalytics NAFIN s Green Bnd has been certified by the Climate Bnd Initiative accrding t latest standards n renewable energy.