1. 07/15/981 Winrock International FINANCING WORKSHOP John Kadyszewski Winrock International June 19, 1998 ASES Solar 98

2. 07/15/982 Winrock International Overview Winrock Perspectives Primary Challenges Winrock Actions What have we learned?

3. 07/15/983 Winrock International Winrock Perspectives Private capital essential for renewable energy market development Global privatization of power sector bypassing rural areas New technology changing development options New role required for public institutions

4. 07/15/984 Winrock International Goal—Attract private capital

5. 07/15/985 Winrock International New Role for Public Institutions Set development priorities Create enabling environment Reduce credit risk

6. 07/15/986 Winrock International Primary Challenges Make markets visible Develop local operational infrastructure Lower investment transaction costs Improve access to credit Increase ability to pay Reduce the real cost of capital

7. 07/15/987 Winrock International Cost of Capital GDP Real Interest Rate Time

8. 07/15/988 Winrock International Winrock Actions Build local capacity Implement model projects Catalyze investment

9. 07/15/989 Winrock International Build Local Capacity YBUL PEI Fundacíon Solar REGAE EACA SELCO MICROSUL ABEER ACOPE APETINDO

10. 07/15/9810 Winrock International What have we learned in Asia? NGOs manage small wind systems in Indonesia Subsidy-free PV in India Lower transaction costs in China Financing renewables in the Philippines

11. 07/15/9811 Winrock International Indonesia Wind Systems Target markets where energy will increase income Strengthen NGO capability to maintain systems and collect fees Technical assistance to assure income growth

12. 07/15/9812 Winrock International Marketing Mechanisms of SELCO India Cash sales Sales through banks Leasing Sales via IREDA loans Sales through local institutions

13. 07/15/9813 Winrock International Preparing Projects in China Form local joint venture company Prepare projects for Swiss environment fund

14. 07/15/9814 Winrock International PEI Finances Renewable Energy Strengthen enabling environment Conduct local due diligence Reduce transaction costs

15. 07/15/9815 Winrock International What have we learned in Latin America? Financing operational infrastructure in the DR Invest through communities in Brazil NGO investment in Guatemala

16. 07/15/9816 Winrock International REGAE--Financing Operational Infrastructure in the DR Lease-to-own program Provide credit for service companies Co-invest with local banks

17. 07/15/9817 Winrock International Invest Through Communities in Brazil World Bank loan for Ceara, Bahia, and Minas Gerais 1-3 million households over 10 years Follow community priorities

18. 07/15/9818 Winrock International NGO Investment in Guatemala-- Fundacíon Solar Educate donors on importance of credit versus gifts Link renewables with relevant applications Leverage new funds

19. 07/15/9819 Winrock International Fundacíon Solar NGO Partners Plan International World Vision UN High Commissioner for Refugees

20. 07/15/9820 Winrock International New Technology Changing Options Improved access to information New ways to increase rural productivity Enhanced quality of life

21. 07/15/9821 Winrock International Stages of Finance in China Allocation of government resources without recovery Allocation with recycling Recycling with market interest rates Commercial financing

22. 07/15/9822 Winrock International Renewable Energy Issues in China Affordability Manage credit in concert with ability to pay Avoid damaging markets with subsidies Create new pathways for finance Move from allocation to market returns