Lombard, Green Energy Finance. Hiten Sonpal, Senior Director

Transcription

1 Lombard, Green Energy Finance Hiten Sonpal, Senior Director

2 Index Energy prices for the last 22 years The Changing Costs of Utility Prices in the UK Electricity Price Index Gas Price Index Coal Price Index Source: Castle Cover Utility Price Index

3 Introduction to Biomass Boilers

4 Biomass Boilers

5 Containerised Solution Images supplied by Woodpecker Energy

6 What is the Renewable Heat Incentive?

7 Renewable Heat Incentive A world first financial incentive to promote the generation of renewable heat 860m for RHI over four years confirmed spend Went live in November 2011 Scheme funded through taxation, not levy Payments made quarterly over 20 year period on basis of metered heat generation (p/kwh) RPI index linked DECC responsible for the policy OfGem responsible for administration Information provided by DECC April 2014

8 Renewable Heat Incentive Tariff Name Eligible technology Elegible size Tariff rate (p/kwh) Small biomass Medium Biomass Solid biomass; municipal solid waste (inc CHP) Less than 200 kwth 200 kwth and above; less than 1000 kwth Tier 1 : 5.87 Tier 2: 1.56 Tier 1 : 5.18 Tier 2: 2.24 Large biomass 1000 kwth & above 2.03 Information provided by DECC Jan 2014 Tier 1 is paid on the first 1,314 kwhs x size of boiler E.g. 199kw boiler x 1314 = 261,486 kwh x 0.059= 15,349 pa

9 What impact is the RHI having? Q ,667 accredited This is an increase of 96% against Q Total accreditations to date 8,913 95% of applications are for Biomass Boilers 88% for biomass boilers <200kw

10 RHI accredited installation by region - December 2014 Table Number of applications and capacity by region, November 2011 to March 2015 Region Full applications Accredited installations Capacity of full applications Capacity of accredited installations Number % of total Number % of total MW % of total MW % of total England 9,215 71% 6,498 73% 1, % 1, % South West 1,973 15% 1,435 16% % % West Midlands 1,251 10% % % % Yorkshire and the Humber 1,337 10% % % % North West 1,191 9% 819 9% % % South East 835 6% 562 6% % % East Midlands 1,188 9% 842 9% % % East of England 891 7% 674 8% % % North East 485 4% 309 3% % % London 64 0% 42 0% % % Scotland 2,467 19% 1,589 18% % % Wales 1,341 10% 826 9% % % Total 13, % 8, % 2, % 1, % Source: Ofgem Source: DECC

11 Key eligibility criteria Installed and first commissioned on or after July 2009 Equipment to be new at time of installation Grants cannot be received for purchase MCS or equivalent EN45011 if installed capacity is 45kW or less Biomass boilers must be designed to use only biomass fuel

12 Lombard Green Energy Finance Team Who are we?

13 Lombard s take on Renewables Dedicated Green Energy Finance Team Over 900 green energy deals transacted in the last 18 months Additional technologies now approved for funding Wind turbines (on shore) Anaerobic Digestion Combined Heat and Power Air source heat pumps LED Solar PV Roof / Ground Mounted 85 renewable suppliers accredited on our list Lombard is committed to supporting the green energy market and we are looking to continue to grow our lending in this sector to support the SME market. Security maybe required. Product fees may apply.

14 Lending policies Solar PV Biomass boilers Air Source Heat Pump Wind Anerobic Digestion LED Lighting Term Term Term Term Term Term 7 Years 6 years 6 years 7 Years 7 Years 3 Years Deposit 10% + VAT Deposit 10% + VAT Deposit 10% + VAT Deposit 10% + VAT Deposit 10% + VAT Deposit 10% + VAT Serviceability will need to be demonstrated from existing activities. Lombard will include 50% of projected FIT/RHI for solar, biomass and ASHP Funding can be provided in to an SPV with a cross company guarantee of a trading business which demonstrates serviceability All associated assets would need to be verified internally by Lombard asset management Lombard do not usually require land or building security Security maybe required. Product fees may apply.

15 Refinance of green energy technologies Benefits to the customer: For projects originally funded out of cash flow cash can be released to fund other renewable projects or be reinvested in to the core business For projects funded from VC or expensive asset finance his can replaced with cheaper Lombard funding For projects funded against land and building security this security can be released to be used for expansion or working capital etc. Security maybe required. Product fees may apply.

16 Refinance of green energy technologies Benefit to Lombard: No construction risk and early teething issues avoided Actual track record of performance as opposed to projections Funding assets that are likely to be attracting a higher level of Government incentive (FIT/RHI) than a new project. Terms: Raise up to the lower of NBV or original invoice price less appropriate depreciation. Max term to match that of a new project Security maybe required. Product fees may apply.

17 For more information Hiten Sonpal Senior Director Lombard, Green Energy Finance Mobile: