Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 Innovation Energie Développement Innovative Financial scheme for sustainable development of RE in Rural Area in Indonesia, Philippines & Vietnam (IFRERA)

Similar presentations


Presentation on theme: "1 Innovation Energie Développement Innovative Financial scheme for sustainable development of RE in Rural Area in Indonesia, Philippines & Vietnam (IFRERA)"— Presentation transcript:

1 1 Innovation Energie Développement Innovative Financial scheme for sustainable development of RE in Rural Area in Indonesia, Philippines & Vietnam (IFRERA) Dr. Tuan NGUYEN, IED Dissemination and Training workshop, Hanoi December 19-20, 2005 Supported by the European Commission through the EC – ASEAN Energy Facility Overview

2 2 Innovation Energie Développement Project objectives  Develop small-scale hydropower based rural electrification in area not yet covered by the main grid systems  Develop a “ready to implement” package and ESCO implementation modality for investors in RE projects –Based on actual site feasibility studies –Identified and mobilised project partners –Ensure local level integration: can take different forms –PPA and contractual elements – understanding of regulatory frameworks –Financial package  Capacity building: Policy and decision makers, financial community, beneficiary communities

3 3 Innovation Energie Développement Project facts data  Financing : –50% from EC through EAEF –50% from partners (in kind contribution…)  Start : July 2004  End : April 2006  Partners : –Innovation Energie Development (IED, France) – Leader –ETC foundations (Netherlands) –Agency for Environment & Energy Management (ADEME, France) –Institute of Energy (IE, Vietnam) –MBA (Philippines)

4 4 Innovation Energie Développement Stakeholders and impact on beneficiaries  Stakeholders and beneficiaries : –Local developers : Fully implementation packages of SHP for business development –Local authorities and communities : Beneficial consequences on those who do not have access to electricity –National utilities and authorities : New scheme of economic and financial analysis; Regulatory framework review and analysis  Outputs : –FS documents –Tender documents (technical, financial, contractual and BIM) –Reports, Workshop proceeding and newsletters, Participation in regional meetings within the framework of existing groups – HAPUA, NRSE SSN, AEBF/SOME

5 5 Innovation Energie Développement Project’s activities  Tec. FS Studies / reviews (as applicable)  Economic Analysis / review  Analysis of the Regulatory, Legal and Fiscal Framework  Financial Analysis  Local level integration  Preparation of full implementation package  Dissemination, management and reporting

6 6 Innovation Energie Développement Project’s Scope  Indonesia : The institutional and contractual frameworks were negotiated locally. Promising sites have been identified and screened in Sulawesi. The need and interested of the local authorities is established; a national developer was identified; financial and contractual schemes are to be developed   The Philippines: A full batch of sites has been identified and developed at the pre F/S stage and 1 sites to technical and economic F/S. The issue now is of mobilising interested national developers / investors and integrating in the framework under development. EIA & SIA is underway   Vietnam: A number of sites have been pre-identified. Looking at the approaches under development in Indonesia and the Philippines, the technical FS of one site proposed by IoE was validated and a contractual framework proposed  More information will be presented in following presentations.

7 7 Innovation Energie Développement Project status – Indonesia (1)

8 8 Innovation Energie Développement Project status – Indonesia (2) In the Sulawesi province of Indonesia, the three identified sites have the following characteristics :  Mikuasi 1838 kW.  Ratelimbong 1365 kW  Sambilambo 3149 kW  Their respective estimated annual productions amount to 12.5 GWh, 8 GWh and 23 GWh ;  Investment package : <10 MUS$

9 9 Innovation Energie Développement Project status – Indonesia (3)  In Indonesia, the implementation package is adapted to the situation where the PLN is the main authority  It’s daughter company IP is the identified developer, willing to invest 30% equity.  A financial analysis was conducted based on the criteria, assumptions and method wished by IP.  The objective of this study : to identify the PPA tariff price that enables IP’s profitability target (IRR = WACC + 5%).

10 10 Innovation Energie Développement Project status – Indonesia (4)  The most sensitive variables are investment costs and hydrology.  Recommendations : Invest 100% in US$, PPA in US$ (if possible).

11 11 Innovation Energie Développement Project status – the Philippines (1)

12 12 Innovation Energie Développement Project status – the Philippines (2)  The Catanduanes Power system is isolated from the main grid. The distribution is in the hands of FICELCO (32,724 customers).  The Lower Dugui site is located in the mountainous area spreading on the north of Virac  Pinst = 3.1 MW & 11.4 GWh  Investment : 393 millions pesos (7.1 million US$)  Criteria for investment (Power One Corporation POC – private investor) : Overall discounted cost < Bunker C diesel reference cost.

13 13 Innovation Energie Développement Project status – the Philippines (3)  The Lower Dugui MHPP price is very sensitive to the discount rate that POC will choose, the cost of access to capital that POC faces.  With access to a cost of capital of 7%, Lower Dugui is already competitive with the March 2005 oil price of 13 Peso/L

14 14 Innovation Energie Développement Project status – Vietnam  Krong Pa 2 SHP in Dak Rong commune, KBang district, Gia Lai province  Supply electricity to the national network and local villages  Installed P = 5.8 MW; 24.48 GWh/y  More information will be presented in details in following presentations : –IoE/ Krong Pa 2 developer on development of Krong Pa 2 –ETC on EIA and SIA –IED on Economic and financial analysis

15 15 Innovation Energie Développement SWOT Conclusions  High energy resources potential still largely under exploited  Competitive sites for MHPP can still be found  Investment costs are significantly lower than in developed countries.  Reduces dependence on fossil fuels and reduces environmental costs.  Need for local and national government support  Need for local partners involvement, for accurate data collection.  Need for private funding.  Regulatory frameworks are being adapted to foster investments in RE resources.  Demand growth is sustained.  The demand growth is very fast. This triggers quick returns on investment.  Collaboration with government bodies at both the local and national levels.  The exchange rate risks have to be mitigated.  The importance of demand growth in the investment profitability requires to secure a good demand forecast.  Accurate investment costs are very hard to forecast. Good local knowledge is essential to mitigate this. Strengths Weaknesses Opportunities Threats

16 16 Innovation Energie Développement Thank you


Download ppt "1 Innovation Energie Développement Innovative Financial scheme for sustainable development of RE in Rural Area in Indonesia, Philippines & Vietnam (IFRERA)"

Similar presentations


Ads by Google