Graham Smith

Transcription

1 Graham Smith

2 Graham Smith

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4 Months Incubation pathway Pipeline development Incubation Investment preparation Private Investment Country assessment Expression of interest Request for proposal Market assessment Smart subsidies Patient TA and mentoring Product development Due diligence Preparation of business plan Deal structuring Impact investment pathway Pipeline development Impact Investment Investment preparation Private Investment Challenge competition Syndicate formation Guarantees Targeted TA Due diligence Preparation of proposal for Private Investors Deal structuring Grant Concession loan/guarantee Commercial finance

5 UNCDF/ Frederic Noy

6 Major barriers for small/medium scale RE projects Dimension of barrier Risk mitigation instrumen ts High perceived risk Limited access to long-term capital Long-term lending Financial support 6 High margins/ financing costs Limited financial viability Numerous instruments to overcome barriers exist. However, they hardly serve the market of small to medium scale RE assets Due diligence requirements and decision making processes of providers are not aligned, triggering high transaction costs and increasing the transaction risk

7 GET FiT Concept developed by Deutsche Bank and implemented by KfW in Uganda as pilot country Governments of UK, Norway and Germany as well as the EC provide funding for the FiT top-up payments World Bank provides PRG guarantess backed by an indemnity agreement with the Government of Uganda Two RfP rounds successfully completed Standardized PPA (technical assistance) Risk mitigation strategies Results-based incentives Enabling environment 7

8 Renewable Energy Performance Platform Overview What? Support committed countries in sub- Saharan Africa deliver an initial portfolio of medium sized renewable energy projects Kickstart the realization of projects under new regulatory support schemes and to accelerate the process of project preparation leading to strong demonstration effect How? Systematic, coordinated and cost efficient combination of support instruments Risk mitigation instruments Long term lending Results-based financing Innovative delivery channel for existing support instrument Concerted action of established players to overcome transaction cost and risk barriers Open architecture 8

9 REPP Concept Increasing financial viability by mitigating risks Closing remaining gap to financial viability Ensuring supply of financing Risk Mitigation Instruments AEGF* Lending Platform Private Sector Financiers REPP implementation vehicle Results-based financial support Aligned Due Diligence Technical Assistance One-stop-shop SPV 1 SPV 2 SPV 3 SPV

10 Scaling through regulatory regimes Sustainable Energy For All Conference, June 4, 2014 Letha Tawney, Senior Associate

11 Kenya s 2014 Transmission Expansion Plan Electrified Population 35% of households have access Un/Low Electrified Rural Population M-Kopa Dealership Locations

12 Engaging in policy and planning can have a high transaction cost INENSUS developed pilot project in Senegal in 2010 but couldn t implement the next phase until 2013! 3 years is a long wait on policy and regulatory limbo

13 How could we productively engage? CLEAN Indian network incubated by the practitioners network and others. 10 Questions to Ask series Models from banking? From other regulated sectors? Letha Tawney

14 Christine Eibs Singer SE4All Senior Adviser Graham Smith Willem Nolen Vincent Wierda Ms. Silvia Kreibiehl Letha Tawney