EBRD investments in renewable energy in · Marat Yelibayev. EBRD at a glance EBRD is an AAA/Aaa...
Transcript of EBRD investments in renewable energy in · Marat Yelibayev. EBRD at a glance EBRD is an AAA/Aaa...
EBRD investments in renewable energy in Central Asia
Marat Yelibayev
EBRD at a glance
▪ EBRD is an AAA/Aaa rated bank by all major three
rating agencies (S&P, Moody’s and Fitch)
▪ Capital base accounts to €30 billion.
▪ Operating in 38 economies from central Europe to
central Asia, EBRD promotes:
✓ Transition to market economies;
✓ Mobilisation of significant FDIs;
✓ Improvement of people’s lives through municipal
services enhancement;
✓ Environmentally sound and sustainable
development.
▪ EBRD has invested over €130 billion in more than
5,270 projects since 1991.
▪ EBRD is owned by 68 countries and two inter-
governmental institutions.
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Annual business volume - Investments and
Operations, 2011-2018
EBRD shareholder structure
EU 28 countries,
63%
USA, 10%
Japan, 9%
EBRD region
excluding EU, 8%
Canada, 3%
Other, 7%
9,051 8,920 8,498 8,8539,378 9,390 9,670 9,547
380 393 392 377 381 378412 395
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100
200
300
400
500
600
700
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2,000
4,000
6,000
8,000
10,000
12,000
2011 2012 2013 2014 2015 2016 2017 2018EURm Number of Operations
Sustainable Energy in Central Asia • Brussels, 12 April 2019 • CHARLEMAGNE BUILDING
EBRD Countries of Operation – the Bank is
increasing its footprint
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Investments by sectors, 1992-2018
EBRD investments in energy in Central Asia
Generation
30%
Transmission
28%Distribution
3%
Renewable
Power
20%
Gas
Transportation
13%
Large Hydro
6%
KAZAKHSTAN
68%
UZBEKISTAN
15%
KYRGYZ
REPUBLIC
3%
TAJIKISTAN
9%
MONGOLIA
5%
Investments by countries, 1992-2018
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▪ Up to date, EBRD’s energy investment in Central
Asia is EUR 1,999 million and includes 46
Power & Energy projects.
▪ More than 66% of the portfolio consists of
Private sector projects.
▪ In 2018 the team invested in projects worth over
€263 million.
▪ Through investments, the Bank aims to support
sector reforms that increase competition and
liberalization of the market, strengthen
frameworks for regionalization and energy
security, prioritize energy efficiency and use of
renewable energy.
Sustainable Energy in Central Asia • Brussels, 12 April 2019 • CHARLEMAGNE BUILDING
Energy Sector Strategy: Promoting low-carbon
energy systems is the objective
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EBRD investments in energy in Central AsiaOperational Approach
Investment
Technical cooperation
Policy dialogue
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• Promoting sustainable energy
• Honest broker role
• Sharing experience and best practice
• Development equity
• Mezzanine
• Project finance
• Corporate loan
• Equity
• RE Frameworks
• Small Financing
Facilities
• PPA drafting
• Grid absorption studies
• Regulatory frameworks
Sustainable Energy in Central Asia • Brussels, 12 April 2019 • CHARLEMAGNE BUILDING
EBRD investments in energy in Central AsiaOpportunities and Challenges
▪ Exceptional resource potential (especially wind, solar, hydro) for developing renewables
▪ Strong but pragmatic political will
▪ Existing/developing legal framework, support mechanisms
Starting point
▪ Intermittent and unpredictable nature of wind and solar power, seasonality of hydro
▪ Growing competitiveness of technologies
▪ Impact of large power volumes interfering with system stability because of priority of dispatch (no balancing market)
Challenges
Opportunities
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▪ Attracting reputable foreign and local investors
▪ Attracting “know-how” and the best available technology on the market
▪ Diversification of the economy relevant for the energy sector dominated by aged power stations
▪ Carbon footprint and emission reduction
▪ Supply of carbon credits
Sustainable Energy in Central Asia • Brussels, 12 April 2019 • CHARLEMAGNE BUILDING
EBRD investments in renewable energy in Central Asia2014-2019
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✓ 15 projects
✓ 901 MW of renewable capacity
✓ USD 673 million of EBRD investment
✓ USD 1440 million total project value
Zadarya SPP
14 MW solar
EBRD: USD 9m
TPV: USD 19m
Burnoye 1 & 2 SPP
100 MW solar
EBRD: USD 124m
TPV: USD 204m
Risen SPP
40 MW solar
EBRD: USD 22m
TPV: USD 45m
Nomad SPP
28 MW solar
EBRD: USD 26m
TPV: USD 35m
Salkhit Wind Park
50 MW wind
EBRD: USD 43m
TPV: USD 115m
Sainshad Wind
55 MW wind
EBRD: USD 30m
TPV: USD 120m
Tseitsii Windfarm
50 MW wind
EBRD: USD 25m
TPV: USD 127m
Desert SPP
30 MW solar
EBRD: USD 10m
TPV: USD 48m
Qairokkum Hydro Power
126 MW hydro
EBRD: USD 88m
Shardara Hydro Power
100 MW hydro
EBRD: USD 121m
TPV: USD 147m
*TPV – Total Project Value
Chulakkurgan SPP
63 MW solar
EBRD: USD 45m
TPV: USD 77m
Saran SPP
100 MW solar
EBRD: USD 54m
TPV: USD 105m
M-KAT Green SPP
100 MW solar
EBRD: USD 58m
TPV: USD 122m
Baikonur SPP
50 MW solar
EBRD: USD 30m
TPV: USD 72m
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LEGISLATION POLICY DIALOGUE ACTIVITIES
▪ Assisting for drafting of secondary legislation
implementing the renewable energy law (2009)
▪ Advice to the Government of Kazakhstan on
Developing FiTs for Renewable Energy Sources
(2010)
▪ Advising on improvement renewable energy
primary legislation (2011)
▪ Advising on a renewable energy sources
allocation (2013)
▪ Modelling the social impact of renewable
energy feed-in tariffs (2013)
▪ Assisting in the final stage of developing
renewable energy legislation (2014)
▪ Assisting Ministry of Energy on establishing a
bankable regulatory and legal framework
(2015-2016)
▪ Strategic Environmental Review (SER) of RES
development in Kazakhstan (2015-2016)
▪ Assisting in the review of the PPA bankability
(2018)
PROJECTS
2009
• Introduction of feed-in tariff system with uniform structure
2011-2013
•Launch of operational legal framework with a set of rules and norms on renewable energy
• Introduction of (i) fixed feed-in tariffs, (ii) development of the Financial Settlement Centreoff-taking energy via (iii) development of Power Purchase Agreements agreement
2013
• Introduction Law on supporting the use of Renewable Energy
2014
• Introduction of full indexation of feed-in tariffs against inflation
2015-2016
• Introduction of the Green Economy Law which provides further supports to the development and operation of renewable energy projects
2018
• Introduction of auction scheme for RES development.
•858MW of solar, wind, hydro and biomass capacity was auctioned.
Burnoye SPP
Extension 50MW
Zadarya SPP
14MW
Risen SPP
40MW
Nomad SPP
37MW
Baikonur SPP
50MW
Saran SPP
100MW
Burnoye SPP
50MW
Shardara HPP
100MW
2012
2015
2018
2017
Sustainable Energy in Central Asia • Brussels, 12 April 2019 • CHARLEMAGNE BUILDING
EBRD investments in energy in Kazakhstan Promoting Green Economy Transition
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EBRD investments in Uzbekistan Power Sector
▪ Cumulative EBRD investment to date into
Uzbekistan totals EUR 1,517 million through 71
projects. Energy investments represent 41% of
the current portfolio.
▪ In 2018-2019 the Bank signed USD 323 million
financing for the construction of priority
transmission and generation infrastructure –
Uzbekenergo Muruntau Substation and
Talimarjan Power Project.
▪ In June 2018, the Memorandum of
Understanding on strategic cooperation in the
power sector was signed between the Bank,
State Committee for Investments and
Uzbekenergo, the national power utility.
Close cooperation with the other MDBs
▪ The Bank's initiatives in close cooperation with the
other MDBs are set to help on-going sector reform
and are thus particularly timely.
▪ In line with our Green Economy Transition mandate
we also support development of renewables and
provide assistance addressing climate change
threats and carbon intensity issues to make power
sector more sustainable.
Policy Dialogue Activities
Three expected policy dialogue activities with the
Government of Uzbekistan:
▪ a roadmap for attracting investment in the power
sector through corporate and structural reform;
▪ engagements regarding tariff affordability; and
▪ engagements on the climate and carbon side of
the power sector and renewables.
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EBRD investments in energy in UzbekistanUnfolded energy engagement in Uzbekistan
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Priority Rehabilitation program
▪ The Bank has financed the priority rehabilitation
program of Vostokelectro (VE) and Oshelectro (OE)
distribution companies.
▪ The two project includes modernisation of the low
and medium voltage power infrastructure aimed
at improved reliability, better integration of
renewable sources and reduction of technical and
commercial losses leading to the carbon emission
reduction of 4,780 tonnes of CO2 a year, or
equivalent to emissions produced by 9,800 cars
in Europe.
▪ Loan and Grant: Financing of investments in the
infrastructure upgrade to ensure that best
available technologies are deployed.
▪ TC component: EBRD provided comprehensive TC
package intended to support project
implementation, procurement process and
corporate development of both VE and OE.
Hydro Potential
▪ The Bank is keen to supporting Kyrgyzstan in
developing the hydro potential of the country by
financing the construction and operation of mini-
hydro power plants and the rehabilitation of the
existing hydro power plants.
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EBRD investments in energy in KyrgyzstanInvestments in the Power Distribution
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Client And Project
▪ Support to the Tajik state-owned power utility by
financing the rehabilitation and upgrade of dam
structure and turbine and hydro-electric equipment.
This will increase capacity of the plant from 126MW
to 170MW and strengthen the plant’s resilience
against the projected impacts of climate change.
Financial Structure
EBRD loans US$88 million
GCF Funds US$50 million
CIF funds US$21 million
Key Climate Resilience Measures
▪ Design of the upgrade to include climate resilience
considerations by modelling future hydrology under a
range of climate change scenarios and hydrological
models.
▪ Capacity building on climate and hydrological data
collection and usage, reservoir management and dam
safety, including twinning programme with staff of
world-leading HP operator Hydro Quebec.
Co-financing from the GCF
In 2017 GCF Board approved co-finance for the
Scaling-Up of Hydropower Sector Climate
Resilience in Tajikistan (Qairokkum HPP) project
Sustainable Energy in Central Asia • Brussels, 12 April 2019 • CHARLEMAGNE BUILDING
EBRD investments in energy in TajikistanScaling Up Hydropower Sector Climate Resilience
Thank You!
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Marat YelibayevPrincipal Banker
Energy Eurasia
Sustainable Infrastructure Group
Tel: +7 7172 55 42 46
Email: [email protected]
EBRD HQ
One Exchange Square
London, EC2A 2JN
United Kingdom
www.ebrd.com