Energy Efficiency & Climate Change Program

Transcription

1 June 2012 Turkey Energy Efficiency & Climate Change Program Abstract of main findings from Mid-Term Review AFD Istanbul Office Büyükdere Cad. Yapı Kredi Plaza, C Blok K:12, Levent / istanbul Tel : afdistanbul@afd.fr Web :

2 Disclaimer The analysis and conclusions of this document are those of the authors. They do not necessarily reflect the official position of the AFD or its partner institutions. 2

3 Turkey Energy Efficiency & Climate Change Program: Presentation Context of the program Within the framework of French-Turkish cooperation, the French Development Agency (AFD) s activities aim to promote sustainable development by: - stimulating low carbon growth; - fostering socially and environmentally responsible practices; - preserving natural assets of the Mediterranean region, as an international and regional public good. In order to support Turkey in its effort to improve its energy security and curb its energy intensity and carbon emissions, AFD conducted in April 2009 a feasibility study of sustainable energy credit lines. Then under the umbrella of the memorandum of understanding signed in April 2009 with the Turkish Ministry of Environment and Forestry, AFD has structured and is currently implementing a program of EUR 350 million supporting sustainable energy investments. Objectives Two main priorities of the Turkish government highlighted in the Turkish National Climate Change Strategy and in the National Energy Efficiency Strategy benefit from this program: - Develop renewable energies in order to meet energy demand while limiting greenhouse gas emissions (Aims 2 and 7 in the MENR Strategic Plan ) - Improve energy efficiency of the Turkish industry, with a focus on SMEs, and therefore improve their productivity and competitiveness (Aim 3 in the MENR Strategic Plan ). Energy efficiency in SMEs: a priority of AFD in Turkey SMEs represent 46% of Turkish industry energy consumption and the energy economy potential for industrial SMEs is valued at around 1 Mtep per year, or 7% of their current consumption 1. In order to realize this energy economy potential, substantial investments should be realized and large amounts of mid- to long-term financings would be necessary. Therefore a significant part of AFD s current action is focused on energy efficiency investments with SMEs. The program includes two interrelated components: the financing of private sector s investments and the support to capacity building and awareness raising. Current projects AFD s credit lines with technical assistance package: To date, AFD has granted 3 long-term loans including a Technical Assistance package, for a total amount of EUR 200 million to TSKB, TEB and Halkbank. These projects are dedicated to energy efficiency and renewable energy, with a focus on energy efficiency investments of SMEs. Proparco s credit lines: Proparco (private-sector arm of AFD Group) has granted 3 long-term loans dedicated to renewable energy investments, to GarantiBank and Isbank, for a total commitment of EUR 150 million. FFEM grant to KOSGEB for capacity building: Through the contribution of the French GEF (FFEM), AFD provides a EUR 1,5 million grant to KOSGEB to support the design and implementation of its strategy and action plan on promoting energy efficiency towards SMEs, as stated in the National Energy Efficiency Strategy. By raising SMEs awareness on energy efficiency, KOSGEB will contribute to catalyze energy efficiency investments that could benefit from AFD Group s or other DFIs fundings. 3

4 Turkey Energy Efficiency & Climate Change Program: Presentation Projects financing scheme with partner banks AFD or PROPARCO EUR 50 or 100 million loan PARTNER BANK Consultant (if relevant) Up to 5 million loan Awareness raising / Energy audit EE/RE Project 1 EE/RE Project 2 EE/RE Project x EE: Energy Efficiency RE: Renewable Energy Main eligibility criteria For each credit line a balanced mix between renewable energy and energy efficiency projects financing is set. Beneficiaries: Depending on partner bank s portfolio profile, a priority to investments within SMEs (Halkbank and TEB) or larger industrial companies (TSKB, Isbank, Garanti Bank). Technical eligibility criteria of EE projects: - Different methods according to the size of the investment: shopping list of eligible equipments, energy audit - Energy saving target of the project (i.e. / unit of output), which differ for retroffiting, capacity extension or Greenfield type of project. Technical eligibility criteria of EE projects: - Technology: Depending on partner banks portfolio biomass, solar, wind, geothermal and small hydro energy projects. - Size of the project: Maximum energy capacity installed in MW, with a priority to smaller projects. Financial eligibility criteria: - Loan amount, maturity, interest rate charged to the firm - Capital / total investment ratio, internal rate of return of the project (IRR). Environmental and social impacts: AFD requires partner banks to analyze environmental and social impacts of projects financed. Carbon impact assessment: AFD requires banks to calculate the reduction achieved in GHG emissions. Examples of innovative projects funded under this program - Biomass power plant (64 MW) using wood wastes to cover all energy needs of a wood manufacturing plant. - Trigeneration power plant covering energy needs of an aluminium manufacturing plant: EUR 2,8 million of energy economies and reduction of CO2 emissions by 22 ktco2 per year. - Multimodal transport project: use of RoRo and railway instead of trucks: 13,2 million liters of fuel savings. 4

5 Turkey Energy Efficiency & Climate Change Program: Status Program Timeline until May 2012 The program begun in 2008 with a feasibility study of an Energy & Climate Program in Turkey conducted by the consortium Burgéap and Mavi Consulting. This study confirmed a significant potential for renewable energies and energy efficiency in Turkey. Consequently different partners were identified and projects designed. Project implementation started in February 2009 and most of the contractual arrangements are in place. Meanwhile AFD conducted training activities and contributed to the policy dialogue on sustainable energy at the occasion of several national events. AFD supports donors coordination on this topic with regular contacts with EBRD and the World Bank. Nov Feb Apr Oct Sept Dec March 2011 June 2011 Dec. April May 2012 Garanti loan 1 TSKB project TEB project Isbank loan Halkbank project KOSGEB project Garanti loan 2 Feasibility study by Burgéap/ Mavi MOU Training by AFD to banks on carbon tool Halkbank staff EE training by CEFEB (AFD s training center) AFD presentation at ICCI AFD at National EE Strategy Workshop Program Status in May 2012 As of May 2012, AFD Group has committed EUR 351 million of financings to this program on which EUR 280 million of loans have been already granted by partner banks to final beneficiary firms. Technical assistance programs are ongoing and around EUR 900,000 have been dedicated by partner banks on energy efficiency capacity building and awareness raising actions. KOSGEB capacity building project should be launched soon. AFD projects Proparco projects FFEM TSKB RE&EE TEB RE&EE Halkbank EE Garanti 1 Isbank Garanti 2 KOSGEB Signing date 06/10/ /09/ /03/ /02/ /12/ /12/ /06/2011 Total amount of financing ( M) Disbursement Status 100% 80% 40% 100% 100% 100% Project to be launched soon Technical Assistance Status 70% completed - End in % completed - End in % completed - End in 2013 No technical assistance No technical assistance No technical assistance 5

6 Turkey Energy Efficiency & Climate Change Program: Mid Term Impacts Review EE & RE projects financed by banks through AFD loans (as of May 2012) The EUR 280 million of AFD Group financings already disbursed have enabled partner banks to grant mid- to longterm loans to 86 projects, of which 54 are energy efficiency projects and 32 are renewable energy projects. Types of projects By number Types of projects % of total loans amount % 2% 21% EE Corporate 12 EE SME hydro wind biomass geothermy 30% 7% 39 36% Quantitative impacts of projects (as of May 2012) AFD Group systematically monitors impacts of projects financed, in terms of economic, social and environmental benefits. In the case of Energy Efficiency and Climate Change projects, partner banks are provided with the energy efficiency and the carbon footprint monitoring tools, developed by AFD (free access), and were trained to use these tools in November The semi-annual reports provided by partner banks confirm sub-projects eligibility, measure impacts of sub-projects, and detail the implementation stage of the technical assistance activities. In addition to partner banks semi-annual reports, AFD monitors projects through project site visits. The last supervision mission by AFD team was held in April Funded projects to date contribute to: - install more than 500 MW of new renewable energy capacity, - reduce energy consumption by more than 1500 GWh /year, - reduce CO2 emissions by almost 2 million tons of CO2 per year. TSKB RE&EE TEB RE&EE Halkbank EE Garanti 1 Isbank Garanti 2 KOSGEB Total Number of subprojects financed Corresponding total amount of investments / / M 48 M 43 M 440 M 141 M / / 1044 M Avoided GHG emissions 807 KtCo2 /year 450 KtCo2 /year 93 KtCo2 /year 467 KtCo2 /year 205 KtCo2 /year / / 2022 KtCo2 /year Installed energy capacity 78 MW 95 MW 37 MW 275 MW 82 MW / / 567 MW Energy savings 1440 GWh /year 900 GWh /year / / / / / 2340 GWh /year 6

7 Turkey Energy Efficiency & Climate Change Program: Mid Term Impacts Review Technical assistance activities through partner banks A Technical Assistance (TA) package is implemented in coordination with AFD s funding. This TA program is composed of market potential studies, environmental/energy audits, trainings notably to appraise sustainable energy projects, marketing campaigns to raise the client beneficiaries awareness, green financial product design or the promotion of sound Environmental and Social risk management in banks operations. Consultants are helping partner banks to develop their in-house technical assistance programs. This TA programs aim at integrating these innovative activities in the banks strategy on the long run. The partner banks are therefore better equipped for apprehending the potential of these markets and will more likely grant the financing of these projects. To date EUR have been mobilized by partner banks for technical assistance activities. Training to staff : project evaluation, marketing of RE and EE E-training on climate change issues and energy efficiency open to all STAFF PARTNER BANKS With consultants inputs Improvement of CSR policies / environmental and social Conferences on energy efficiency benefits and mechanisms Banks procedures Development of dedicated webpages on energy efficiency Free full energy audits to volunteering firms SMEs and other firms Analysis of energy efficiency / carbon emissions reduction Example of actions: - TSKB launched a website dedicated to energy efficiency in May 2011: - TEB organised a seminar on energy efficiency investments for the tourism industry in Antalya in September Halkbank engineering team will attend a two days training on environmental impacts of small hydro power plants in June AFD s direct contribution to the promotion of energy efficiency in Turkey In addition to partner banks technical assistance programs, AFD contributes directly to building knowledge and know-how in the sustainable energy field and to the promotion of energy efficiency towards Turkish SMEs and industrial firms. Support KOSGEB in the implementation of its EE mandate Raise public understanding of EE investments benefits through presentations at seminars AFD Contribute to donors coordination on EE activities Conduct studies on Energy & Climate Develop tools to measure impacts 7

8 Turkey Energy Efficiency & Climate Change Program: Next Steps Next steps Priority will be given in the next few months to monitoring partner banks achievements and KOSGEB capacity building program. This monitoring will notably focus on planning energy efficiency awareness raising actions towards SMEs. The aim is to leverage what has been built to date by AFD and its partners towards mainstreaming energy efficiency investments in Turkey. Beside, AFD is actively participating to the effort of donors coordination in the field of energy efficiency, with a special interest to consolidating and harmonizing development impacts monitoring. AFD is also exploring new commitment opportunities to support the updated National Energy Efficiency Strategy published in February 2012, notably in the fields of buildings energy efficiency and heating networks. AFD Istanbul Office Büyükdere Cad. Yapı Kredi Plaza, C Blok K:12, Levent / istanbul Tel : afdistanbul@afd.fr Web : 8

9