Financing Renewable Energy in Africa

Transcription

1 Financing Renewable Energy in Africa RE Africa Helsinki January 2013 Prepared by Clean World Capital Group Ltd Strictly Private and Confiden8al

2 Clean Energy Merchant Banking Advisory London, Copenhagen, Helsinki Corporate Solutions Equity & debt capital Financial solutions Project Solutions Project development Project finance Asset Management Capital Markets Structured Products Bonds / Alt Lenders Fund Mgmt Solutions Procura Energy A/S Denmark Retail distribution Aalto Capital Finland Finnish Advisory Partner Clean World Development Africa, India and S.E. Asia

3 Value Proposition Our Value Proposi>on in Africa Clean World Capital (CWC) works with strategic partners and investors at client level and project level or institutionally that share our mission of facilitating more renewable energy faster OUR BUSINESS PRINCIPLES: Capital With Conscience a proactive environmental, social and ethical stance VALUE ADDED based on the the triple bottom line principle BRIDGE the growing financing & knowledge gap COLLABORATION knowledge transfer, integrated solutions and access to capital 1. KNOWLEDGE TRANSFER linking Nordic social and environmental culture, know-how, equipment and capital with fast growing markets like India and Ghana 2. INTEGRATED SOLUTIONS industry expertise, management experience, financial advisory, know-how, risk management and entrepreneurship 3. ACCESS capital owners; institutional investors, family offices, HNWI, SWF and DFI VALUE CREATION Develop co-investment portfolio, providing co-investors attractive and superior returns while providing CWC access to captive capital ALIGNMENT Create equitable and sustainable value for all stakeholders! " # $ % &! ' ( %) *+,#&

4 The African Opportunity & Our Mission in Ghana Ambition Quality Sustainability Have fun

5 Advantages of Clean Energy to the African Economies Power production Green economic growth Energy security Wealth creation for households and industries Food vs Fuel considerations CO2 saving 100% CO2 free Local supply chain lowers global carbon footprint Services and maintenance provided by local firms Job creation O&M will create both technical and commercial jobs Construction Supply chain, feedstock, local content production, etc. Knowledge transfer Transfer of knowledge from main clusters in Europe Potential ways for local production and innovation After sales, services Grid capacity and transmission management

6 Sector poten>al solar, wind and bio energy Scope Solar PV Fast time-to-market Attractive climate conditions On- and off-grid opportunities in agriculture and mining Rural electrification Biomass & waste Energy-from-waste and biomass feedstock E.g. use feed stock from palm oil, bamboo, sugar Nordic technology transfer Export value-added or improve local energy mix Wind Exploit wind resources, particular the Saharan and Atlantic winds; Ethiopia Nordic technology transfer Regional equipment supply chain opportunities Impact Facilitating Green Growth Lay the foundation for a new industry with job creation Distributed energy to benefit rural and urban households CO2 savings and stable electricity generation Solution to urban waste and energy problems Another new income sources for the economy, well-suited for industries Agriculture & forestry knowledge transfer Sustainability plantation and harvesting Sustainable biofuels opportunities Another major job creation income opportunity for economy Create centres of excellence to attract OEMs and supply chain Add to a stabilising energy mix and CO2 reduction

7 Financing renewable energy in Ghana CWC sector, development and financing know-how Equipment Suppliers Proven technology, local application EPC Contractor with African project experience! " # $ % &! ' ( %) *+,#& Lawyers Local legislation and contrracts Local partners On the ground; political, site and local stakeholder alliances; Project development Land rights Building permit EIA Grid capacity PPA Financing EPC O&M Financial and legal debt and equity structuring Bankable EPC with strong track record Technical and operational management Asset Management Financial Management of the plant CWC Core CWC Core Partner dependent CWC Core

8 Unlocking access to capital DAVOS 2013: Institutional participation required (world s largest pension funds AUM 2010 $11.3 trillion) More than $2 billion of Africa focused private equity funds announced in 2012 Key Capital Owners Seed funding Local private capital Government support AfDB seed capital institutional Equity Development Finance Institutions Private Equity Family Offices Corporations Loan Capital AfDB and IFC Regional development banks Export credit agencies Regional banks International bank Financing Solutions investment grade project Long-term feedstock and offf-take agreements Well-procured equipment and service supplier process Bullet-proof contractual framework for power license, ESIA, building permit, feedstock (bio) and Power Purchase Agreement Capital structure considerations Government support Equitable support and/or success-based Inclusive return-model AfDB and/or/nor IFC Local finance solutions Equity investor criteria Renewable Energy Check List Framework Legislature & rule of law Political and financial system Land rights & ownership protection Energy framework Renewable energy policy Power balance Transmission grid access Contractual support IPP track record Project Development Land access, site assess Participation/Outgrowers Bankable equipment and service providers Developer track record License and permits

9 For more informa>on, contact Per Regnarsson, CEO & Managing Partner +44 (0) Orange Street WC2H 7EF, London UK Skype: perregnarsson Clean World Capital UK Ltd. is an investment advisory bou8que focused on wind, solar and bio energy Clean World Capital (UK) Limited is a 100% owned subsidiary of Clean World Capital Group Ltd., incorporated under the laws of Malta. Clean World Capital (UK) Ltd. is a trading name of Providen8a Capital LLP, which is authorized and regulated by the Financial Services Authority. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Energy Advisory Firm of the Year in Denmark Prepared by Clean World Capital Group Ltd Strictly Private and Confiden8al