Introduction to the Green for Growth Fund (GGF)

Transcription

1 Investing in Energy Efficiency and Renewable Energy Introduction to the Green for Growth Fund (GGF) Beirut, 22 nd September 2016

2 Agenda 01 About the GGF 02 Setup of the GGF 03 The GGF Technical Assistance Facility 04 The GGF in Figures 2

3 About the GGF Mission Statement The mission of the Fund is to contribute, in the form of a public private private partnership with a layered risk/return structure, to enhancing energy efficiency and fostering renewable energies in the Southeast Europe region including Turkey (SEE) and the European Eastern Neighbourhood region (ENR) and in the Middle East and North Africa (MENA), predominantly through the provision of dedicated financing to businesses and households via partnering with financial institutions and direct financing. 3

4 About the GGF T Target t countries t i off th the GGF T Target t countries t i off th the GGF with ith llocall offices ffi * This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence. M MENA E European Eastern Neighbourhood Southeast Europe The GGF Target Region Albania Bosnia and Herzegovina Croatia Kosovo Kosovo* FYR Macedonia Montenegro Serbia Turkey Armenia Azerbaijan Georgia Moldova Ukraine Egypt Jordan Lebanon Morocco Palestinian Territories Tunisia 4

5 About the GGF History Current Investors TA Facility Donors Initiators 5

6 02 Setup of the GGF 6

7 Setup of the GGF Flow of Funds How GGF Funding Provides Impact Investors Shareholders h or Notes Interest tor Dividendid d Technical Assistance and Loans Interest, Principal and Impact data Loans Interest, Principal and Impact data Training Financial Institutions Direct RE/EE Investments EE/RE Loans Households Interest and Principal Commerce Industry Agriculture 7

8 Setup of the GGF Impact Measurement and Monitoring EE/RE Sub Loans Investee Finance in Motion Investor Loan Terms and Conditions Project Specific Information Core banking system esave tool (provided dby the GGF) EUR MWh tco 2 Data synthesis and analysis Integrated sub loan data reported quarterly 11

9 Setup of the GGF Partners and EligibilityCriteria Eligibility Criteria Minimum i 20% reduction in primary energy consumption Minimum 20% reduction in CO 2 emissions Promotion of renewable energy Financing instruments Medium to long term senior loans Subordinated loans Letters of credit Guarantees Mezzanine debt instruments Equity Partners Financial i Institutions (> 70% of assets) t) local commercial banks non bank financial institutions such as microfinance institutions and leasing companies other selected financial institutions Direct Investments in renewable energy and energy efficiency (< 30% of assets) renewable energy projects energy service companies other non financial institutions 9

10 Setup of the GGF Improving EE via Partner Institutions with a broad spectrum of measures Insulation Improvement: Process Machinery Often less than Replacement: EUR 1,000 EUR 50, ,000 Process Improvements: Often > EUR 1,000,000 Street Lighting: up to EUR 10,000,000 Retail SME Corporate Municipalities Boiler Replacement: Typically between EUR 2,000 5,000 Agri Equipment Replacement: EUR 15, ,000 Renewable Energy Projects: up to EUR 10,000,000 District Heating: up to EUR 10,000,000 10

11 Setup of the GGF Providing Direct Financing for Renewable Energy Projects Targeted RE Technologies Hd Hydro Power Wind farms Solar (thermal and photovoltaic) Biogas / Biomass (no food crop replacement) Geothermal The eligibility of the projects mainly depends on the sustainability regarding social and environmental impact. GGF conditions for financing (senior debt) Long term tenors possible (max. 15 years) Grace period possible during construction period GGF's contribution limited to two times the equity contributed EUR 7 10 million GGF contribution Hydropower limitations for dam height (15m, 3 million m³) 11

12 03 The GGF Technical Assistance Facility 12

13 The GGF Technical Assistance Facility Maximizing Impact The main principles of the Technical Assistance Facility are: Support the GGF s mission and strategic direction Produce synergy effects with investments Ensure independence and sound governance Adhere to principles of transparency GGF TAF projects since inception 13% 9% 54% 18% 6% Capacity Development of FI s Capacity Development of NFI s Impact Analysis & Energy Audits Research & Analysis Awareness Raising & Market Enabling 13

14 The GGF Technical Assistance Facility Donor Funded Support Mechanisms are Leveraged to Maximize Impact Financial Institutions Renewable Energy Sector Wide Initiatives Capacity building within institutions in order to build long term and sustainable commitment to green energy finance e.g.: Product development and strategy Marketing and promotion Portfolio screenings EE/RE technology training esave training Support to inexperienced project developers to bring their projects in line with international environmental and social standards for renewable energy projects Helping to build awareness of the benefits of EE and RE, as well as green finance through: stakeholder events, marketing materials, and cooperation with local energy experts 14

15 04 The GGF in Figures 15

16 The GGF in Figures OutstandingInvestment Portfolio and Number of PIs EU UR million Num mber of PIs (est) 0.0 As of 31 March

17 The GGF in Figures Portfolio Measures Financed since inception Small scale RE 3% Commercial RE 20% Improvemen ts in processes 30% Vehicles 2% Energy service and supply 7% Agricultural l Equipment 5% Investment portfolio by country Georgia Buildings 32% Montenegr o Complex FYR heat supply Macedonia and dist. 1% Azerbaijan Moldova Ukraine Armenia Bosnia and Herzegovin a Albania Serbia Turkey Croatia As of 30 June

18 About the GGF Making the Difference Scope & approach Regionally Embedded Efficient Combination of financial and non financial services Tailored financing and TA Flexible choice of technologies / projects Physical presence in the region Strong local knowledge and experience Commitment tto build long term partnerships Professional management and quick ikdli delivery Low operational costs/ lean structure Ddi Dedicated tdsoftware for reporting and eligibility 18

19 Thank you for your attention! Contact: Lachlan Cameron, Phone: +49 (0) , E Mail: L.cameron@finance in motion.com

20 Backup slides 20

21 Setup of the GGF GGF s Tiered Structure Allows to Attract Private Investors Private Investors Notes Development Finance Institutions i and International Financial Institutions Income Waterfall Senior A Shares Mezzanine B Shares rdination Wa aterfall Donors Junior C Shares Subo Based on NAV as of 31 March

22 Measure Examples Standard Measure Loan Tractor Replacement SME 100% 80% 60% 40% Client Type Agricultural Objective Reduce fuel consumption 20% 0% Sub Loan Amount EUR 28,300 Eligibility Check esave Energy Savings CO2 Savings 22

23 Measure Examples Non Standard Measure Loan Increase of PrintingCapacity SME 100% 80% 60% 40% Client Type SME Printing Objective Increase production efficiency 20% 0% Sub Loan Amount USD 60,000 Eligibility Check Energy Consultant Desktop Energy Savings CO2 Savings 23

24 Measure Examples Non Standard Measure Loan Expansion and Automationofof Food Production SME 100% 80% 60% 40% Client Type SME Food Production Objective Reduce per unit energy intensity 20% 0% Sub Loan Amount EUR 225,300 Eligibility Check Energy Consultant Desktop Energy Savings CO2 Savings 24