DNV GL © 2013 SAFER, SMARTER, GREENER DNV GL © 2014

Innovative Climate Financing in South East Asia

Ragna Schmidt-Haupt (Head of Policy, Strategy and Renewables)

ASIA CLEAN ENERGY FORUM, Manila, June 2015

ENERGY - RENEWABLES ADVISORY

11 June 2015 1

DNV GL © 2013

Introductory remarks

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DNV GL © 2013

DNV GL Energy An energy technology powerhouse

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10 laboratories including world’s largest high power and high voltage test lab

Largest

independent technical advisor on renewable energy

2,500

independent energy experts

90 years experience, including 30 years in energy efficiency and wind energy

No. 1 in high power and high voltage testing

25 Leading certification body with more than 25 standards and guidelines published

Global Advisory | Wind 160+ GW | Solar 45+ GW

DNV GL © 2013

Our work in renewables

Manufacturers

Developers,

owners and

operators

Investors

Technology

Projects

Asset

operation

We work with our

customers…

…in the solar, onshore

wind and offshore

renewables sectors…

..to enhance their

projects, technology and

asset operations.

4

Policy

makers

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Solar Technical Innovation

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Risk profile of renewable energy projects

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Time

Ris

k E

xp

osu

re

Commercial Grid connection, offtake

agreement, Sponsor experience EPC track record, contracts and warranties, project management

Interest rates, currency, inflation, labour costs, insurance, tax

Regulatory Permits, land lease/ ownership,

environmental, social Regulatory change,

interconnection and transmission Regulatory change

Players Processes Technology

Technical Energy resource, site location,

design, technology Reliability of technology,

weather, installation, testing Reliability of technology, O&M experience, scope, spare parts

Phase 1: Development Phase 2: Construction Phase 3: Operation

Platform Funding/ M&A/ IPO

Crowd Funding/ Sourcing

Investment Funds/ Developers

Yield Cos

Securitisation

Green Bonds

Non recourse Project Finance

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Bright Ideas - Financial Innovation

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Case Study - Securitisation

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US SolarCity’s Securitisation

Company: SolarCity

Location: US

Size: 44 MW (Round 1), 5,033 PV systems (71% residential)

na MW (Round 2), 6,596 PV systems (87% residential)

118 MW (Round 3), 15,915 PV systems (86% residential)

Technology: PV

Capital raised: USD 54 million (Round 1)

USD 70 million (Round 2)

USD 201 million (Round 3)

Yield: 4.8% (Round 1), 4.59% (Round 2), 4.32% (Round 3)

• Asia next? • Australia, China?

• What is needed? • Scale • Standardisation of equipment, contracts,

design etc • Experienced players EPC partners • Streamlined connection processes • Quality equipment • Geographic diversification • “Relatively stable” policy environment

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Case Study – Yield Co

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Solar Yield Co

Company: Foresight Solar Fund Limited

Location: UK

Technology: 145,5 MW PV

Capital Raised: 150 million GBP

Dividend: 6%

• Asia next? • Thailand, Singapore, Hong Kong, China?

• What is needed? • Scale • Experienced players with pipeline of

operational projects • Stable/reliable offtake agreements • Proven processes • “Relatively stable” policy environment

DNV GL © 2013

Case Study – Green Bond

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Green Bond in Singapore

Company: Greenko Plc

Location: India

Technology: Hydro and wind assets

(~650MW)

Capital raised: USD 550 million

Yield: 8% (Senior Fixed Rates Notes)

Source: Standard Chartered Bank

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Case Study – Solar Bond

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Solar Bond issue by Standard Chartered

Company: Singyes Solar, China

Location: Singapore

Technology: Solar assets

Capital raised: CNH 560 million

Yield: 7.875% (Senior Fixed Rates Notes)

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Case Study – Green Bond

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Green Bond issued by various Thai Banks

Company: SPCG Public Company Limited

Location: Thailand

Technology: Solar assets

Capital raised: NTE THB 4000 million

Yield: 5.5%

• Asia now • Singapore, Thailand • Hong Kong, all developed solar markets

next? • What is needed?

• Green bond issuance is linked to credit rating of issuer.

• Proven pipeline of RE assets • “Relatively stable” Policy, regulatory and

Grid connection environment

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Case Study - Crowd Funding

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PV Crowd Funding

Company: United Photovoltaics Group

Location: China

Size: 1MW

Technology: PV

• Asia now • China, Singapore • Thailand, Philipp., AU, NZ, Indo, Mal next?

• What is needed? • Scale in terms of number of projects, less

relevant is project size • Standardisation of equipment, contracts,

design for multiple projects investment • Experienced players , Proven processes • “Relatively stable” Policy, regulatory and

Grid connection environment

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Concluding Remarks

11/6/15

Private and confidential

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Technical Innovations & Trends

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The cost of Storage and PV (its key driver) are both dropping, and the wider use of Smart Grid technolgy is at our doorstep.

The next wave of technical innovation, around Storage and Smart grid solutions, will accelerate business and finance models further.

$/kWh Battery Cost

Bi-directional information flow

Bi-directional Energy flow

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It’s an exciting time for solar energy finance

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• Confidence in the technology, processes, markets and players is the starting point

• We are there to help!

The bright ideas discussed are financial innovations that are happening somewhere in the

world right now, and in APAC too!

DNV GL © 2013

SAFER, SMARTER, GREENER

www.dnvgl.com

Any questions? Thank you!

11 June 2015 17

Ragna Schmidt-Haupt,

Head of Policy, Strategy & Renewables

ragna.schmidt-haupt@dnvgl.com

+65 9170 8230