Green Energy Efficiency Fund Overview Financed Cases Jose-Luis Bobes, October 2012
Objectives of the Conference User Forum Share experiences Learn from each other Provide feedback Target Audience: ESCOs ESCO clients Remind the resources for your business: GEEF Brochure 6 Funded Cases 6 Industry Sector brochures Industry Workshop Energy Audits GEEF Website: www.idc.co.za/development-funds/geef
Objectives of the Conference Agenda Workshops Round 1: Biogas Funded Case: Iskhus Biogas (Auditorium) Performance Contracting: Shared Savings Refrigeration Energy Efficiency: Omega Workshops Round 2: Cogeneration Funded Case: SACC (Auditorium) Shower Heads funded case: Magnet Strengthening bankability: USAID/USTDA DISCUSSION PANEL Share experience structuring projects Work together finding synergies Suggest improvements MOVE TO THE NEXT LEVEL
Energy Efficiency Developing other sectors of the Green Economy through innovation... IDC has created an enabling environment by securing cheaper funding, with long debt tenures to act as a catalyst in the Energy Efficiency Markets. Green Energy Efficiency Fund was launched in October 2011 - offers the market debt at concessionary rates with debt tenures up to 15 years by partnering with the German DFI KfW. IDC has structured the repayment of these loans to effectively match the savings profile of the technology installed. e.g.. On a Roof Top PV the savings over 15 years are equivalent to the debt service repayment and hence the facility of 15 years is then proposed. Hence not an out of pocket expense for the company.
Green Energy Efficiency Fund KfW Concessional debt funding Technical assistance grant IDC Develop Green Industries Capacity building in clean energy finance Green Energy Efficiency Fund Addresses market failure and funding barriers Reduced interest loan -Prime less 2% Long payment term ( up to 15 years) Stimulate energy efficiency and renewable energy investment Technical assistance to: -identify energy efficiency and renewable energy opportunities -calculate the economic and financial benefits -support the selection of eligible equipment and enhanced performance technologies. Promote long term business competitiveness -Modernisation of businesses -Increased company profitability -Improved product quality and production capacity -Lower vulnerability to increasing energy prices. Contribute to global climate protection -Measurement of energy savings and carbon reduction -Enhanced company image due to contribution to reduction of carbon footprint.
From Theory to Implementation Launch Approved Loans CO2 Tons Equivalent Avoided Sectors Future Focus October 11 10 325,905/year Standard Offer Standard Product SWH Biogas Cogeneration Industrial EE
Frequently Asked Questions about GEEF Is GEEF compatible with Eskom IDM programs? Yes Can GEEF finance the end user? Yes Do we have to pay for the GEEF Energy Audits/Technical Assessments? Depends Are the loans in Euro or Rand? Rand Local Requirements? Standard IDC strategy Pricing is always prime -2%
Some Funded Cases
Case Study 1: 25% Reduction in Grid Electricity Consumption by Installing a Solar Photovoltaic (PV) System A Cape Town-based company that produces sport wear and leisurewear under license to an international brand. The company has embarked on a project to install a grid connected (grid-tied) rooftop PV system to generate 25% of the company s annual electricity requirement Electricity accounts for more than 90% of our carbon emissions and is a scarce resource that is vital to the successful operation of our business. We are confident that the solar installation will generate between 30 40% of our energy requirement, thereby reducing our carbon footprint, save money and improve our sustainability into the future. William Hughes, MD, Impahla Clothing Sector Region Goals Investments Financial Savings Other Benefits CO2 Reduction Textile Industry Western Cape Reduced reliance on coal based electricity from grid Solar Photovoltaic (PV) system 30kW peak Investment cost covered by energy and cost savings Positive image as a progressive environmentally friendly company 50 CO 2 tons per annum
Case Study 2: 18% Energy Savings from Utilisation of Waste Gas to feed a Combined Heat and Power (CHP) Plant The chemical production company wants to use the waste gas as fuel for a 7.8 MW CHP plant to replace part of the power supply from the grid. This results in 18% savings from using the waste gas to feed the CHP plant. The company spends close to R7-million on electricity a month, and this new co-generation plant will cut this bill by about 20%. The additional 8 MW capacity will enable the company to operate at full production compared with the 70% capacity because of electricity constraints. Claudio Siracusano, GM, SACC Sector Region Goals Investments Financial Savings Other Benefits CO2 Reduction Chemical Industry KwaZulu-Natal/South Africa Reduced reliance on coal based electricity from grid 4 co-generation units Scrubber plant Investment cost covered by energy and cost savings Increased reliability from own energy supply 46,000 CO 2 tons per annum
Case Study 3: More than 40% Savings in Energy Consumption with Solar Water Heaters Sector Region Goals Financial Services Gauteng Reduced reliance on coal based electricity from grid A financial intermediary that provides Solar Water Heaters (SWH) on a lease-to-own agreement to private households and commercial buildings. Solar water heating systems are one of the most cost-effective uses of solar energy in South Africa as they replace more than 40% of electric heated water. Investments Solar Water Heater (SWH) lifetime of >20 years Energy Savings Financial Savings 2,700 KWh per annum (avg) Investment cost covered by energy and cost savings The Green Energy Efficiency Fund will enable us to roll-out Solar Water Heaters to at least 400 households, by removing the challenge faced by many clients in financing the high upfront costs of SWH. Quinton Zunga, CEO, Solar Network Other Benefits CO2 Reduction Positive image due to carbon footprint reduction 2.8 CO 2 tons per annum per system
Thanks! Visit: www.idc.co.za/development-funds/geef for more information about GEEF: Green Energy Efficiency Fund