IRENA Project Navigator

INTERNATIONAL RENEWABLE ENERGY AGENCY

Workshop on financing for renewable energy in SIDS,

Kuala Lumpur, 2./3. August 2015

Senior Programme Officer Roland Roesch

1

Content Outline

2

•What is the IRENA Project Navigator?

•Who will benefit from the Project Navigator?

• Components of IRENA Project Navigator

• Next Steps

• Outreach and interaction with IRENA Member Countries

3




• Next Steps


What is the IRENA Project Navigator?

4

The Challenge of Renewable Energy Technology (RET) projects:

• Failures to prove bankability to funding institutions

• Insufficient knowledge on project proposal development

• Higher project development costs

• High risk of project failure

Objectives of the Project Navigator:• Improvement of RET project proposals

• High quality implementation of RET project proposals

• Adaptation to the project’s specific conditions, aims and framework

• Efficient use of funds

Scope: IRENA Project Navigator includes• All RETs

• Different finance types: grants, loans, equity

• Project sizes: from individual use to utility scale projects

• Global: all geographical regions


5

Modular Approach


Renewable Readiness

AssessmentIdentify

IRENA Roadmaps

Screen

Remap 2030

Global Atlas

Local associations

Assess SelectPre-

Development

Costing Alliance

Development

Costing Alliance

IRENA’s Report on standardisation

in RE

IRENA RE Country Briefs

WWEA

Local administrations

Local associations

6




• Next Steps


Who will benefit from the Project Navigator?

Who will benefit from the IRENA Project Navigator?

7

Sources:• Conserve-Energy-Future. July 5, 2013; http://conserve-energy-future.com/Images/SolarEnergy_Advantage.jpg• Ecodyfi. July 5, 2013; http://www.ecodyfi.org.uk/images/turbineandshareholders.jpg• Cloudfront. July 5, 2013; http://dqbasmyouzti2.cloudfront.net/content/images/articles/coins-310x224.png• OLX. December 4, 2013; http://peshawar.olx.com.pk/academic-learning-centre-iid-153763443

•Compliance with stakeholders requirements

•Higher quality of RET projects

•Lower implementation costs

•Understandable administrative processes

•Efficient administration

•Capacity building

Member Countries

•Best practices

• Identification of needs/gaps

•Easier and faster funding opportunities

•Higher quality of RET projects

Project Developers


•Spread social awareness

•Decision-making and investment participation

Municipalities

•RET project planning guidance

• Input for curriculum development


Academia

•Easier and faster project evaluation

• Identification of bankable projects

Financing Sector

8




• Next Steps


Components of IRENA Project Navigator

9

The RET Project Development Communication and Coordination Platform

Learning Section

10

Project Workspace

11

Financial Navigator

12

13

Financial Navigator

Financing Opportunities:

Donors Loans Equity

Financial Navigator

Technology

Region / Country

Scale / Scope

Detail view of the funds (1)

14

Detail view of the funds (2)

15

16

Financial Navigator

• ACP-EU Energy Facility

• Climate Catalyst Fund

• Global Climate Partnership Fund

• Global Energy Efficiency & Renewable Energy Fund (GEEREF)

• Clean Technology Fund (CTF)

• Strategic Climate Fund (including Scaling Up Renewable Energy

Program (SREP))

• ORIO (Infrastructure development fund)

• ELENA

• Symbid

• Vietnam Green Credit Trust Fund

• EREF - Ecowas Renewable Energy Facility

• Nordic Climate Facility

• ADB Clean Energy Financing Partnership Facility (CEFPF)

• Green Africa Power (GAP)

• EEP Africa - Energy and Environment Partnership

• Central Asia Renewable Energy Fund

• Global Environment Facility

• Norfund

• NEFCO Carbon Fund (NeCF)

• Fair Climate Fund

• Sustainable Energy Fund for Africa (SEFA)

• AusAid

• Climate partnerships with the private sector

• EU-Africa Infrastructure Trust Fund

• ESMAP-The Energy Sector Management

Assistance Program

• African Renewable Energy Fund (AREF)

• Renewable Energy Asia Fund

• Green For Growth Fund

• European Energy Efficiency Fund

• Sustainable Energy and Climate Change

Initiative

Content of the Project Development Guidelines

17

• Socio-economic

• Technical

• Legal and Commercial

• Organizational

• PoliticalSource:• Pelamis Wave Power: http://www.pelamiswave.com/news/news/127/Pelamis-selected-for-1.4m-ETI-wave-power-project• Siemens: http://www.renewableenergyworld.com/rea/images/siemens-expands-solar-thermal-portfolio-with-solel-acquisition/50392• Torresol Energy Investments: http://www.torresolenergy.com/TORRESOL/home/en• SolarDawn: http://solardawn.com.au/news/


18

Source: NREL

Identify

Screen

Assess

Select

Pre-Development

Development

• Identification checklists

• SWOT matrix, SCOPE, PRIMO-F, PESTEL planning models

• Self-scoring test, Critical pathmethod

• Ranking scheme, Selectionspreadsheet templates

• Stakeholders Impact matrix,TECOP model, Critical Successfactors, Project profiles templates,viability checklist

• Analysis Overview (see next slide)

Contracts

19

Your Business

Partnering (agreements)

Power Purchase

Agreement

(PPA)

Engineering, procurement

and construction

(EPC)contract

Operation and maintenance agreement

Land lease Contract

Loan agreement

Grid connection agreement

Supplying agreement

Donor contribution agreement

Definition

How does the Agreement work?

Benefits & Risks for the involved parties

Structure

Typical legal terms Why are they part of the Agreement? What is usually the content of each section?

Templates/ Example contracts

Sources: • Adapted from: Windustry. May 17, 2013. http://www.windustry.org/community-wind/toolbox/chapter-13-power-purchase-agreement>

20




• Next Steps


Next Steps

Next Steps: 2015

21

Technical Concepts:

August, 2015: Photovoltaic Technical Concept Mini hydro Mini-grid applications Geothermal Bioenergies

6 Pilot studies in cooperation with member countries and with developers in member countries

Regional Adaptation

2015: Adapted version for Small Island Development States (SIDS) and West Africa

Other regional adaptations (LAC, MENA, Pacific regions)

Constant and continuous improvement of the tool

Continued identifcation of partners to progress the tool

Source: NREL

22




• Next Steps

• Outreach and interaction with IRENA Member CountriesOutreach and interaction with IRENA Member Countries

23

Outreach and Interaction with IRENA member countries

Training workshops on how to use the IRENA Project Navigator

Gain feedback and thereby continuously improving IRENA Project Navigator

Regional adaptation in cooperation with member countries and finance institutions

Increase the number of interactive tools

Source: NREL http://images.nrel.gov/viewphoto.php?&albumId=207405&imageId=6326315&page=3&imagepos=38&sort=&sortorder=

http://images.nrel.gov/viewphoto.php?&albumId=207405&imageId=6326315&page=3&imagepos=38&sort=&sortorder=

www.irena.org

Thank You

www.irena.org/navigator

25

Process Overview


26

Identify

Screen

Assess

Select

Pre-Development

Development

Macro environment

Micro environment

Pricing

DCF MODEL

RegulatedLiberalizedState Monopoly

ContractsPartneringLegal aspects

Technical and Logistical Factors

WACCNPVLCOEInterest During Construction

Energy Market

Technology ConceptLogistic ConceptConstruction Phases

Inflation RateGDPSectorial Structure

Documents

IRENA Project Navigator