Successes in Mobilizing Finance for Clean Energy

Transcription

1 Successes in Mobilizing Finance for Clean Energy Suneel Parasnis, PFAN-Asia Coordinator ( )

2 ECO-Asia Clean Development and Climate Program Funded by USAID Regional Development Mission for Asia September 2006 September 2011 Team of 40 energy professionals across six (6) countries China, India, Indonesia, the Philippines, Thailand, and Vietnam More than 85 partnerships in the region Four programmatic teams: Policy and Regulation Efficient Lighting Private-Sector Finance Energy Efficiency: Finance and Delivery

3 The Challenge Coaching and mentoring businesses The Missing Middle: Lack of Access to Financing Seeking financing Seeking projects/ businesses PUSH Clean energy businesses and projects Investment Sources $ PULL PUSH Government (policies) Training Financial Institutions Policy Dialogue

4 Introduction CTI PFAN is a Multi-Lateral Initiative: Initiated by the Climate Technology Initiative (CTI) Asia Pacific Partnership (APP) Renewable Energy & Energy Efficiency Partnership (REEEP) International Center for Environmental Technology Transfer (ICETT) U.S. Agency for International Development (USAID) USAID has been involved with the scale up of PFAN from pilot to a full scale program Global Climate Change Program Regional Development Mission in Asia

5 A multilateral initiative CTI PFAN funding partners

6 How does PFAN operate? Profitability Typical project target Type: wind, solar, geothermal, biomass, biofuels, small hydro Project Criteria Value: US$ 1 50 million total Project Criteria GHG potential

7 How does PFAN operate? Services CTI PFAN provides support & advice to selected clean energy projects to help them meet the criteria of the Investment Community Free coaching service to project sponsors & developers to help them raise private sector finance Matchmaking Service: Contact Brokering & Introductions

8 Continuous Activities Cyclical Activities 1 Project Sourcing Application Forms Application Forms Country Teams 2 Evaluation and Screening List of Candidates List of Candidates PFAN Mentors 3 PFAN Mentoring Program Business Plan Project Data Sheet Investment Pitch Investment Pitch Judges 4 Investor Forum Business Plan Competition PFAN Certificate Business Plan Project Data Sheet Investors 5 Facilitated One-on-one Meetings Term Sheet

9 How does PFAN operate? CTI PFAN network partners

10 PFAN-Asia Highlights Since April 2009: Over 90 projects mentored (US$ 1.4 billion) Facilitated financial commitments for 20 projects totaling $250 million Target Leverage: $ million Financed projects include biomass, hydro, solar, and energy efficiency Expected annual greenhouse gas mitigation from financed projects: over 475,000 metric tons/year Expected greenhouse gas mitigation over these projects lifetime: more than 9.1 million metric tons

11 Clean Energy Financing Forums Asia Forum for Clean Energy Financing, Bangkok: March 2009, March 2010 Philippines Clean Energy Investor Forum: June 2009, June 2010, November 2010 Indonesia Clean Energy Investor Forum: June 2009, July 2010 China Clean Energy Investor Forum: October 2009, September 2010 India Clean Energy Investor Forum: October 2010

12 Biomass Portfolio Projects per Country: Cambodia 1 China 7 India 2 Indonesia 3 Philippines 6 Thailand 1 TOTAL: 20 Projects by Type: Biogas 6 Biomass 4 Hydro 3 Energy Efficiency 5 Solar PV 1 Clean Transport TOTAL: 20 I

13 Biomass Projects in Asia 30 MW North Sumatra Steel Mill Biomass Power Plant Project (PT Growth Sumatra Industry, Ltd, US$25 million) Steel mill uses local agricultural waste used to produce electricity to provide power for its operations and the surrounding community 5.6 MW Biomass Cogeneration Facilities for Food Industries (Solutions Using Renewable Energy, US$13.6 million Installs more energy efficient boilers to process wasted coconut shells and corn husks into power, steam, and heat for food processing 1.2 Biogas Power Plant in La Union, Philippines (Solutions Using Renewable Energy, US$3 million) Provides livelihoods for at least 700 farmer-families who manage 1,700 hectares of forest for the plant's feedstock supply (rice husks)

14 Biomass Projects in Asia 1.2 MW Biogas Power Plant in the Philippines (JTM Industrial Farm, US$ 3.2 million) Multiple-feedstock system converts organic waste from a local pig farm and agricultural waste from local farmers into power and fertilizer 12 MW Banga Biomass Power Plant (ASEA One Power Corporation, US$ 30 million) Unique profit-sharing scheme and feedstock supply agreement benefit both local farmers and power producers

15 Feedstock Reliability Many biomass plants become unsustainable when faced with rising prices of feedstock. For each of its biomass projects, PFAN has helped companies design long-term partnership arrangements that secure a fixed price on the feedstock in exchange for a fixed percentage of the profits. This model represents a win-win proposition in terms of feedstock supply reliability as well as immediate economic returns for the local community.

16 Groundbreaking ASEA One President and CEO Paul Rodriguez shows Philippines President Gloria Macapagal-Arroyo the types of feedstock that will be used in the biomass power plant in Western Visayas

17 Project Highlights Secure and reliable supply of biomass feedstock Plant site is surrounded by farmland, improving the logistics of the supply chain Profit sharing agreement with local farmers encourages goodwill and safeguards against artificial shortages and spikes in feedstock cost Ro-Ro vessels of sister company, Asian Marine Transport, can be used to source feedstock from neighboring islands Economic impact The 4 phases will generate a total of 258 MW, which is 47% of the power requirement of the Visayas region by 2014 The combination of Boracay, 2 international airports, and the additional 42 MW of embedded power, positions Aklan on the path of economic prosperity Dramatically increased employment opportunities for locals Total annual mitigation potential of 4 phases is 860 ktco 2 eq.

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19 Energy Efficiency Financing Policy Exchange Lighting ECO-Asia CDCP Toward financial closure PFAN Project Identification Match-making Mentoring Tech Transfer Feasibility First Round Equity Debt Equity Bank and Investor Capacity Building EQUiTY FUNDS BANKS PFAN FINANCING FACILITY USAID/RDMA State Dept SELF-SUSTAINING PPP PLATFORM Existing ODA Funders USAID Missions Australia New ODA Funders CTI Countries GEEREF USAID Energy IQC ADB World Bank/UN FUNDERS

20 Contacts General enquiries Peter Storey, Global Co-ordinator Asia Peter du Pont, Asia Regional Coordinator