Transcript Green Africa Power

Green Africa Power
UNFCCC Regional Workshop on Nationally Appropriate
Mitigation Actions for Africa
Kigali, Rwanda
17–19 August 2015
Renewable Energy Financing in Africa
Renewable Energy Project Finance Model
• Debt -by DFI(IFC/PROPARCO/DEG/FMO/OPIC, etc) = (50% - 85%)
• Debt -by Banks(Standard Bank/RMB/Barclays etc) = (50% - 85%)
• Mezzanine financing(GAP/FMO/DEG) = (5% - 15%)
• Equity(Developers such as Scatec solar/BioTherm etc) = (15% - 50%)
Renewable Energy Financing in Africa
Case Study in SA: Linde Solar PV Farm - 36.8MW
Developer
Scatec
Financing
Volume
USD135m
Debt
Providers
Standard Bank Group
Equity
Investors
Norfund / Scatec Solar AS
/ Standard Bank Group
Ltd. / Old Mutual Life
Assurance Company Ltd. /
Simacel
Legal
Advisors
Trinity International LLP / Norton
Rose
Fulbright / DLA Piper LLP / White
& Case LLP
Project
Equipment/
Services
Providers
SMA Solar Technology AG
Source: Clean Energy Platform
Renewable Energy Financing Options
Organization
DEG
FMO Entrepreneurial Bank (IDF and AEF)
KfW & Partners (SA & Tunisia only)
Global Energy Efficiency and Renewable
Energy Fund (GEEREF)
International Climate Fund (UK)
Global Climate Partnership Fund (SA &
Tunisia)
IRENA / Abu Dhabi Fund for Development
(ADFD)
African Carbon Asset Development Facility
(ACAD)
Climate and Development Knowledge
Network
Climate Finance Innovation Facility (CFIF)
Climate Technology Initiative (CTI) Private
Financing Advisory Network (PFAN)
Norwegian Investment Fund for Developing
Countries (Norfund)
Interact Climate Change Facility (ICCF)
Energy and Environment Partnership (EEP)
EIB Climate Change Technical Assistance
Facility
IFC Partial Credit Guarantees
IDB's Infrastructure Fund (InfraFund)
IFC Risk Sharing Facility
GAP
Technical
Assistance
/Grant
X
X
X
X
Equity
Capital
X
X
Long
term
Mezzanine loan
X
X
X
X
X
Short
term
loan
X
Risk
Management
/Guarantees
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Current Status
GAP formed April 2013.
Part of the Private Infrastructure Development Group (PIDG)
Funded by UK Government £95m. Funding agreement signed
October 2014 & Norwegian government £26m (NOK 300m) signed
December 2014
Management Board appointed.
London based EISER Infrastructure LLP appointed Investment
Manager July 2014 supported by Camco Clean Energy plc who have
operations in London and several African locations.
EISER & Camco are meeting developers to set up a pipeline of
projects that need some GAP support to become viable.
Private Infrastructure Development Group
• DevCo – managed by WB/IFC advising governments on structuring
transactions to facilitate private sector participation in Infra..
• Guarantco – Provides guarantees to lenders to support local currency
finance for projects
• ICF-DP – Direct financing for projects in emerging economies
• Infraco Africa – Early stage infrastructure project development fund
• Infraco Asia
• Technical Assistance Facility – Assist other companies in capacity building
• The Emerging Africa Infrastructure Fund – PPP offering long term debt and
Mezz debt for infrastructure
• GAP
GAP’s Mission
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Access to Reliable Electric Power is seen by many as an essential cornerstone
of economic and social development including the enhancement of status of
women and girls.
Sustainable growth through the use of renewable technology brings an
added benefit by reducing the effects of climate change.
GAP will work with private sector developers to help them to bring forward
new projects in this field.
GAP will work with host governments to identify and overcome road blocks
that are preventing the start up of new renewable power generation projects.
GAP will encourage acceleration of new project ideas by measuring success
and publicising the results of its activities to as wide an audience as possible.
GAP’s Investment Policy
Total Funding available currently £121m - to cover investment and operating costs.
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UK Department For International Development (DFID) £70m
UK Department for Energy & Climate Change (DECC) £25m
Norwegian Ministry of Foreign Affairs (MFA) £26m (NOK 300m)
Targeting Private Sector Renewable Energy On Grid Power Generation,
Investment in at least three DAC 1,2 and 3 countries in Sub Sahara Africa ( minimum 75% DAC1
& 2).
At least three types of renewable technologies (wind, solar, hydro, geo-thermal, biomass, waste
to energy)
Investment via Mezzanine (Quasi Equity) Loans or Contingent Lines of Credit.
Maximum Investment by GAP 20% of Capital Costs.
Private Sector must invest at least twice the GAP Investment over the portfolio.
GAP loans will be long term (typically 10+ years up to 20 years if supported by an appropriate
PPA) and with commercial interest rates usually in the range of 10-12% pa.
Investment Commitment Period 2015-2017 - First Investment targeted Q3 2015.
How GAP works
GAP will consider approaches from developers who have projects
that fit the GAP mandate.
Developers can contact GAP via the website :www.greeenafricapower.com
Projects will be reviewed initially by the Investment Manager’s
Team.
Final approval rests with the GAP Management Board.
All investments held in the name of GAP.
Funding for Future Development
GAP hopes to have committed the full value of its current funding by
end 2017 with all funds invested by 2018.
Limitations on the number of projects that can be financed would be
a maximum of 5 per year.
GAP will receive income from its loan portfolio but this will only
cover at most one addition project per year from 2018 onwards.
GAP can “recycle” proceeds from loan repayments or refinancing of
projects but this unlikely to occur significantly before 2020.
GAP Management Board
Jim Cohen – Chairman (based UK)
James Neal (based UK)
Peter Bird (based Singapore)
Godfrey Mwindaare (based Ghana)
Supported by Peter Hutchinson – Executive Director
Based in London
(Contact [email protected])
EISER Infrastructure LLP
London based fund management group specialising in Infrastructure
Investment
Opened office in Jo’burg late 2014 ( 2 staff full time on GAP
mandate)
Participation in circa £3bn of Infrastructure Investment
Contact Vivian Nicoli ([email protected])
Camco Clean Energy plc
London AIM listed company operating in the renewable energy
sector
Offices in London, US, RSA (co-located with EISER), Kenya, Tanzania
& Togo.
Also opening an office in Ghana.
Project developer & participation in innovative battery storage
technology
Africa Based Advisory (Climate Change, Environment, Carbon
Markets, RE Policy, Land Use & Forestry)
Contact Eugene Obiero ([email protected] )