Renewing Ireland's Energy European Investment Bank

Transcription

1 Renewing Ireland's Energy European Investment Bank IWEA Autumn Conference 2013 Galway Thursday 3 rd October 08/10/2013 1

2 The European Investment Bank (EIB) Long-term finance promoting European objectives European Union s long-term lending bank set up in 1958 by the Treaty of Rome. Shareholders: 28 EU Member States Based in Luxembourg Governance Board of Governors EU Finance Ministers Board of Directors - Member States & European Commission Management Committee EIB s executive body Audit Committee independent, non-resident 08/10/2013 2

3 The EIB: capital breakdown at 1 st July /10/2013 European Investment 3 Bank Group 3

4 2012 Key figures European Union: EUR 44.8bn Partner countries: EUR 7.4bn Total lending: EUR 52.2bn Borrowings: EUR 71.0bn Subscribed capital EUR 242.4bn EIB IS THE LARGEST SUPRANATIONAL LENDER EIB World Bank IADB ADB NIB EBRD IFC AfDB 08/10/2013 4

5 Loan signatures in the EU in 2012 (EUR m) 08/10/2013 5

6 Funding strength adds value for customers Loan portfolio is mainly funded through bond issues on international capital markets Passing on to loan customers of funding advantage, benefiting from financial strength and stability and strong capital market positioning Non-profit maximising Large and frequent international bond issuer with EUR 76bn issued in 2012 Distribution of EIB bond issues by region 08/10/2013 6

7 Environmental sustainability The EIB s climate action focuses on: low-carbon investments that mitigate greenhouse gas emissions climate-resilient projects that improve adaptation to climate change impacts. EIB Climate Action Lending* : EUR 78.8 bn * including loans to energy (renewables, energy efficiency projects), transport, water, wastewater, solid waste, forestry sectors and research, development and innovation (RDI). EIB is one of the largest providers of finance for climate action, providing over EUR 13bn worldwide in 2012 alone. 08/10/2013 7

8 EIB Role Climate Finance: Renewable Energy Renewable Energy Lending Wind Energy manufacturing Solar Energy manufacturing RE sources misc. sectors Hydroelectric power stations Wind Energy Solar Energy RE dedicated transm. lines Geothermal power stations EIB Renewable Energy Lending : EUR 19.8 bn European Investment Bank 3

9 Offshore + Onshore Onshore 355 EIB lending to wind energy EU Region in meur 240 TOTAL EUR 7.57bn funding for wind Onshore: EUR 3.5bn Offshore: EUR 4.07bn Offshore wind involves larger project size than onshore wind farms and still an emerging technology High demand for EIB financing Significant direct support to EU manufacturers and in RDI as well as facilitating grid connection to wind generation site (EUR 1.3bn) 64,1 08/10/2013 9

10 EIB Activity in Ireland EIB has been working closely with the Irish government, public sector agencies and private businesses to finance projects that support longterm growth Total lending volume : EUR 3.5bn Energy - 41% Transport - 27% Health&Education - 10% SME (credit lines) - 17% Water & waste water -3% Energy infrastructure projects (gas and electricity networks, conventional and renewable generation) accounted for the largest portion of EIB s financing 08/10/

11 EIB financing to the Irish Energy sector North-South gas networks and extensions - EUR 250m 875MW CCGTs - EUR 372m SEM Management Control System - EUR 26m East-West Interconnector - EUR 300m 355MW wind generation - 445m Electricity network construction and upgrade - EUR 235m & Charging stations for E-cars Renewable connections in SW of Ireland (to be signed in 2013) TOTAL: EUR 1.55bn 08/10/

12 Projects must: Project Requirements Meet at least one of the EIB s objectives Be technically sound Be financially viable Show an acceptable economic return Comply with environmental protection and procurement regulations Creditworthiness of the Borrower and acceptable security package Promoter should provide sufficient information to allow the EIB to assess whether the project adheres to EIB lending objectives and has a well-developed business plan 08/10/

13 The EIB project cycle 08/10/

14 Financing Facilities Direct Loans for large-scale projects (more than EUR 50m) Intermediated Loans for Small and medium-scale projects (particularly to SMEs) via national and regional intermediary banks (where lending decision remains with the financial intermediary) Loan structures offered by EIB can vary from structured to simple amortising loan contracts. Passing on to loan customers EIB s funding advantage 08/10/

15 Requirements Wind generation Technical requirement Only IEC-Type certified onshore wind turbines Wind Due Diligence Measured data covering at least one full year from at least a one meteorological mast at the wind farm site; an anemometer installed higher than 2/3 of the expected hub height of the proposed turbine. Other on-site complementary measurement methods can be considered, subject to further analysis. The design & implementation of the meteorological mast(s); mounting of the measuring equipment must follow standards (i.e. IEC, IEA or Measnet). Long term data must be available for at least a ten-year-period, with acceptable correlation. Environmental Due Diligence All environmental permits and approvals should be in place for a project to qualify. EIB will require a copy of any Environmental Impact Assessment produced. No negative impact on Natura 2000 conservation sites Levelised Electricity Production Cost Cost shall be competitive (LCOE 90EUR/Mwh) with fossil fuel-fired generation, including externalities, based on 5% real discount rate and 15 years economic lifespan. Expected production should be associated to a P75 probability scenario. Procurement (subject to public promoter) All projects located in Ireland shall be procured according to the EU Procurement Directives (Directives 89/665/EEC, 92/13/EEC and 2007/66/EC) and is required to follow public sector rules for the procurement of its contracts. 08/10/

16 For more information Tel: (+352) /10/