PEP Informationsworkshop

Transcription

1 Project Financing Options for Biomass and Biogas Energy Projects in the Philippines PEP Informationsworkshop Joachim Schnurr, GFA ENVEST Berlin, June 2012

2 The Financing Advisory Instrument of BMWi s EnEff & RE Export Initiatives BMWi s Financing Advisory Instrument Modul 1: National and International Financing Support Modul 2: Financing Support by German Institutions Modul 3: Carbon Finance Modul 4: Matching and Innovative Financing Concepts Tools and Methods: Study on Financing Mechanisms Presentation Counselling Target Group: German Trade Delegation Members and potential Business Partners in the Host Country

3 Modul 1: International Financing Support for Renewable Energy Projects

4 International Support Instruments Examples of financing support instruments and programs Interna'onal ADB s Clean Energy Program USAID s Green Technology Ini5a5ve CTI s Private Financing Advisory Network EIB Energy Efficiency and Renewable Energy Loan GEEREF Global EnEff and RE Fund World Bank Clean Technology Fund

5 The Climate Technology Initiative s Private Financing Advisory Network - CTI PFAN - Problem: Lack of sufficient Public Funds to make an impact on Technology Transfer for Climate Change Need for an Involvement of the Private Sector PFAN seeks to bridge that Investment Gap Acts as a broker between the money and the projects Strengthens the capacity of the project developers to present their projects in a way that investors and financiers can readily understand ASEA One Power Corporation Banga, Aklan, the Philippines Project Type: Biomass Investment Secured: USD 30 million Energy Capacity: 12 MW GHG Mitigation: 40,000 tons/year Solutions Using Renewable Energy (SURE) Rosario, La Union Province and Cagayan de Oro, Mindanao, the Philippines (2 projects) Project Type: Biomass Investment Secured: USD 16.6 million Energy Capacity: 6.8 MW

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7 CTI PFAN Services

8 Modul 2: Support by German Institutions

9 Overview German Support Instruments Various financial and technical support instruments available to foster Renewable Energy investments Energy Efficiency Project / Investments with German par'cipa'on: technology export or direct involvement Project Support Instruments: PPP projects Feasibility Studies Climate Partnerships with private sector Export & Trade Finance Investment Support Export Credit Agency

10 Export Finance Buyer Loan Main lending instrument in export business is the so-called buyer loan Exporter 1. Export Contract 3. Export Goods or Services Importer / Buyer 4. Export Contract Payment 2. Loan Agreement 5. Loan Repayment Export Finance Bank Local / Importer s Bank Usually covered by an export guarantee provided by official export credit insurance

11 KFW IPEX Export Financing KfW IPEX-Bank provides project finance and offers trade and export finance. Target Group & Eligibility German Exporters and Foreign Buyers of German Exports Goods and Services Financed are exports insured via HERMES Credit Cover (not condi5onal) Substan5al propor5on of German technology and service Terms and Condi5ons Loan volume up to 25 Mio. EUR / max. up to 85% contract value Individual, case- by- case decision on interest rates Maturity: minimum 4 years Applica5on Applica5on for Supplier Credit at every German Bank Ins5tute Applica5on Buyer Credit turn to KfW IPEX- Bank GmbH E- Mail: info@kfw- ipex- bank.de Internet: hap:// ipex- bank.de Small Ticket Europe Export Finance for Small and Medium Companies Small Export Loans 0.5 to 5 Mio. EUR with maturi5es ranging from 2 to 5 years Informa5on: kmu_export@kfw.de

12 Buyer and Supplier Credit: Up to 85% of project costs Loan volume > EUR Medium to long- term maturity Semi- annual instalment AKA Export Finance Bank Customized financing and processing of international trade-finance transactions Advantages for the exporter: Immediate payment on delivery Costs of financing to be borne by the buyer Advantages for the importer: The export transac5on is supported by an aarac5ve financing proposi5on Long term financing for low volume transac5ons Preserva5on of local credit limits AKA Bank:

13 Export Credit Cover Euler Hermes Export Credit Cover protects German Exports against payment defaults and cash losses, due to: Political Risk and Economic Risks Eligibility Export of goods and services and structure financing / project financing None- marketable, but jus5fiable risks abroad Special focus on small and medium enterprises No minimum export value Terms and Condi5ons Variable maturity for energy efficiency, renewable energies up to 18 years Flexible redemp5on payment possible e.g. annuity Administra5ve fee + premium Premium depends on country ra5ng, credit period, creditworthiness of buyer

14 Export Credit Cover Instruments: Manufacturing Risk Cover Supplier Credit Cover Buyer Credit Cover Construc5onal Works Cover Cover of Project Financing and Investments Guarantees Contact: Phone +49 (0)40/

15 DEG Deutsche Investitions- und Entwicklungsgesellschaft mbh A partner for German private-sector companies investing in developing and emerging-market economies. Variable equity par'cipa'on in the company in the investment country minority stake with clearly defined exit strategies DEG Instruments Project- specific mezzanine finance Long- term loans between 4-10 years maturity, max. 25 Mio. EUR Guarantees e.g. risk sharing with local bank Contact: Phone: +49(0) info@deginvest.de

16 DEG Financing of Feasibility Studies DEG uses funds from the Federal Ministry for Economic Cooperation and Development (BMZ) to co-finance feasibility studies Target Group Financial Support SMEs located and opera'ng within the EU with a turnover of up to 500. Mio EUR DEG provides a up to 50% of the feasibility study cost s upper limit EUR Requirements Applica5on Prepara'on of realis'c private sector investment plausible in terms of successful implementa5on and profitability Further informa'on and applica'on form - Phone: +49 (0) machbarkeitsstudien@deginvest.de

17 Modul 3: Carbon Financing

18 Carbon Financing Clean Development Mechanism Based on the Flexible Mechanisms of the Kyoto Protocol: Instruments to Co-Finance Sustainable Energy Investments (GHG mitigation) CDM Clean Development Mechanism Allowing the Annex I countries to meet part of their GHG reduc5on commitments using "Cer5fied Emission Reduc5ons (CERs) from GHG reduc5on projects in Non- Annex I countries CDM allows to realise emission reduc5on cost effec5vely - wherever it is cheapest globally CDM s5mulates sustainable development and emission reduc5ons, offers industrialized countries flexibility in how they meet their emission reduc5on targets

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20 CDM in the Philippines A potential co-financing instrument, BUT South Africa s Grid Emission Factor: 0.65 t CO2/MW co- financing poten5al GHG mi5ga5on projects: 0.65 US- $ cent / KWh (5% of energy price) Unclear Climate Regime and mechanisms post 2012 new mechanisms under nego5a5on allow for new marke5ng op5ons for emission reduc5on units Current Kyoto Mechanisms applied a]er 12/2012 but capitalisa'on of CERs problema'c e.g. EU intends to only allow CERs of Least Developed Countries Uncertain CER price development Carbon co- financing in general possible post 2012 but considerable risks involved

21 Modul 4: Innovative Financing Instruments

22 Innovative Financing Approaches based on CDM Emission Reduction Purchase Agreement (ERPA): Mitigate risk of CER capitalisation CERs as equity to attain further financing ERPA as security enables project to raise further loans Project Owner / SPV with low equity Loan Finance Ins5tu5on CER Buyer with good credit ra5ng Sale of CERs via ERPA CERs Equity & Loan Renewable Energy Project

23 Thank you for your attention! GFA ENVEST Joachim Schnurr