CDB Lending Criteria and Support for EE/RE. Peter Werner, CDB (REEEU) Herbert A (Haz) Samuel, Consultant

Transcription

1 CDB Lending Criteria and Support for EE/RE Peter Werner, CDB (REEEU) Herbert A (Haz) Samuel, Consultant 27 th Aug 2015

2 CDB support for RE/EE CDB s Energy Sector Strategy promotes Direct investment loans Public sector Private sector Policy based loans Smart facilities SEEC GeoSmart Programs EE/RE line of credits with DFIs Technical assistance Project specific Policy and institutional Targeted Dialogue on Energy Policy

3 CDB support for RE/EE Technical assistance Public sector: Project identification and development e.g. energy audits Private sector: Assistance to meet special program requirements e.g. climate vulnerability assessment Liaise with TA-cooperation partner to support private sector project development E.g. REETA and CREDP

4 CDB support for RE/EE Sustainable energy guide For the Bank Overview of relevant EE/RE technologies Technology-specific fact sheets including performance criteria For investors Outline of minimum CDB criteria and expectations for bankable projects

5 Technologies and sectors covered Energy Efficiency Renewable Energy Buildings Agriculture Industry Road infrastructure Water supply Transmission and generation Transportation Photovoltaic Hydropower Biomass/waste Biogass Wind Geothermal Waste to Energy

6 Energy Efficiency Benchmark: Energy or Emission saving of >20% in comparison to baseline Need to be verified by appropriate assessments e.g. energy audits Measuring baseline consumption Defining a theoretical consumption scenario based on market practice technology Current Consumption Common Practice

7 Example information EE: Buildings Area Potential savings Minimum EE criteria Aircon 20% to 40% VRF inverter technology as split unit Minimum EER of 12 Lighting 20% to 80% T8 or T5 fluorescent tubes, CFL or LED lamps Ventilation 10% to 40% Volume and temperature control Implementation of heat exchangers to reuse cold air Energy Efficiency Benchmarks to assess building energy performance LEO: 100 kwh/m 2 Energy Star Building: 202 kwh/m 2 US buildings: 255 kwh/m 2

8 Example information RE: Hydropower 7,000 MW of hydro capacity estimated across CARICOM 6 CDB BMCs enjoy utility-scale hydro 30% of total electricity in Dominica supplied by hydro 20% of total electricity in St Vincent supplied by hydro 9 hydro plants owned and operated by the Jamaica Public Service Corp; provide 3% of total electricity Investment Benchmarks Investment cost US$3.5 - $5 M per MW Capacity Factor > 50% 20 years river flow data Payback period < Project term IRR > WACC

9 CDB Investment Criteria: Hydropower Technical Run-of-river hydro projects preferred Environmental and social impacts assessed; mitigation measures detailed and planned 25-year project lifetime assumed Economic Equity contribution 30% Loan term 10 years plus grace period up to 3 years IRR >12% DSCR >1.5

10 Example information RE: Solar PV ~8 CDB BMCs have MW-scale PV installations Solar insolation in the region is 4-6 kwh/m 2 /day 2% of total electricity in St Kitts supplied by PV < 1% of total electricity supplied by PV in the Caribbean Installed PV costs continue to fall Investment Benchmarks Investment cost US$1.6 - $2.5M per MW Capacity Factor > 17% Payback period < Project term IRR > WACC

11 Example information RE: Solar PV Investment Benchmarks Investment cost US$1.6 - $2.5M per MW Capacity Factor > 17% Payback period < Project term IRR > WACC

12 CDB Investment Criteria: Solar PV Technical Grid-connected projects Generation licenses acquired and PPA agreed with utility Construction planning permissions in place Economic Equity contribution 30% Loan term 10 years plus grace period IRR >12% DSCR >1.5

13 CDB project processing steps Application including project documents and company financials Review and clarification of gaps Mobilizing interdisciplinary appraisal team Site visit including due diligence

14 CDB project processing steps Project appraisal and internal review Board review and approval Fulfillment of pre-conditions of company Loan disbursement Supervision and completion report

15 Discussion Thanks! Questions?