GHANA CAPITAL PARTNERS SOLAR PV IN GHANA

Transcription

1 GHANA CAPITAL PARTNERS SOLAR PV IN GHANA SIDNEY YANKSON BERLIN, 10 TH DECEMBER 2013

2 2 Ghana Capital Partners Ghana Capital Partners ( GCP ) is a boutique private equity firm and project developer. Headquarters in Accra, Ghana. International management team with experience operating in all the major financial centers. Currently fund raising excellent deal pipeline.

3 3 GCPs Pan African Presence Team of 15

4 4 Sector Focus Broad remit with respect to sectors, with focus on: Energy; Infrastructure; Mining and mining services; and Consumer products.

5 5 Global PV Power Map Germany 398MW South Africa 0.8 Source: EPIA Global Market Outlook for PV

6 6 Ghana s Renewable Energy Resource Ghana 1,700 kwhr Germany 900 kwhr

7 7 Why Ghana? Ghana ranks higher than all the major emerging markets, including the BRICs, and only narrowly behind Italy. Renewable Energy Act, 2011, provides a strong foundation for the development of renewable energy. Rank Economy 21 Germany 65 Italy 67 Ghana 69 Turkey 72 Greece 92 Russia 96 China 116 Brazil 120 Indonesia 129 Kenya 134 India 147 Nigeria Source: World Bank

8 8 Why Ghana? Market dynamics 1. Diesel Consumption, 2. Load shedding, % increase in electricity 1 October 2013 (9.5 weeks ago!!)

9 9 Ghana s Renewable Energy Highly attractive sector due to: growing power demand 2.1GW now 5GW by 2015; focus on clean power; and Feed-in-tariffs published solar PV, biomass, wind, hydro. GCP s renewable energy deal pipeline currently in excess of 150 MW. Renewable energy is a long-term play on economic growth in Sub Saharan Africa.

10 10 GCP Investment Pipeline 150 MW of renewable energy projects Minimum IRR of 18% Range of established technologies, including: Solar PV Wind Biomass Waste to Energy GCP is looking for equity investors at both the fund and project levels (co-investors).

11 11 GCP Solar deal pipeline West Africa benefits from high levels of solar irradiation. GCP is currently pursuing a number of solar opportunities with several well progressed, including: Utility scale solar PV power plant; and Roof top solar multiple installations.

12 12 28 MW Solar PV Plant 28 MW solar PV power plant in central region - Ghana. USD 56m total capex. Over 40 GWh/year of electricity production forecast. PPA negotiations with utility - ECG. Feed-in-tariff of GHS 0.43 / kwh (~ USD 0.20/Euro 0.15).

13 13 28 MW Solar PV Plant Potential Off takers ECG Wholesale power supply market West African Power Pool Project update: Land secured; Licenses EPA, Energy Commission; Senior Debt MOU received from leading African Bank; Equity Financing being negotiated; and Equipment and EPC MOU signed. Registered with MIGA

14 14 28 MW Solar PV Plant Photo of site

15 15 28 MW Solar PV Plant Panorama of Western site centered to the North

16 16 28 MW Solar PV Plant Access road to western site

17 17 28 MW Solar PV Plant 11kV Distribution line alongside site

18 18 Roof Top Solar GCP will install solar PV systems on roof tops. Fully integrated offering (design/install/operate/maintain). Flexible financing/leasing terms offered to customers Significant benefits to customers and Ghana: Power at source lower transmission losses Reliable and clean technology Competitively priced Projects are well progressed with customer & supplier negotiations under way (offices, industrial)

19 SolarClover TM " Complete modular system " Lightweight, durable panels " Can be installed by non-specialists " Adaptable for many uses, on and offgrid

20 Superior Performance Half the weight of glass Twice the power of thin films Accumulates 10x less dirt Low maintenance, reliable, UL 1703 certified Designed for Africa

21 21 Roof Top Solar current pipeline Fruit juice maker 247kW Hospital 40kW Offices kW Telco towers 10kW Warehouses kw Total pipeline 5MW First project commissioned Expected Q2 2014

22 22 Challenges Regulatory framework (Renewable Energy Act) is new and relatively untested only 2 MW of solar PV currently installed. No subsidy for upfront costs. No net metering for private users. ECG (off-taker) bankable counterparty? Local currency funding rates very high (c. 28%). Hard currency funding (EUR & USD) available but limited instruments available to related hedge FX risk. But.. challenges are investment opportunities!

23 23 GCP s Solutions Market Dynamics High growth region Significant demand for energy Lack of bankable projects Limited number of project developers with true local knowledge Solar PV increasingly cost competitive GCP Offering Proprietary deal flow Network of contacts Long-term investment opportunities (20+ yrs) Attractive IRRs Early mover advantage Socially responsible & ethical investments Access to carbon credits

24 24 Conclusions Excellent opportunities for solar PV in Ghana: Significant demand for power High levels of solar irradiation Rapidly growing economy Supportive government and regulatory systems GCP has a large pipeline (150 MW) of renewable energy projects and can help you navigate entry into the Ghana market specifically and Africa in general.

25 25 Contact Sidney Yankson Global Headquarters African Headquarters Ghana Capital Partners Limited GCP Limited Room 4003, 40/F PO Box CT 8716 China Resources Building Cantonments, Accra Hong Kong Ghana Tel: hongkong@ghanacp.com ghana@ghanacp.com