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Iron in the Ground: The Link Between Energy Policy and Getting Projects Built Private Financing Advisory Network - Asia PFAN-Asia – March 2014
Transcript of Private Financing Advisory Network - Asia · Private Financing Advisory Network - Asia ......
Iron in the Ground: The Link Between Energy Policy and Getting Projects Built Private Financing Advisory Network - Asia
PFAN-Asia – March 2014
• Deloitte Consulting • SSG Advisors • DFDL • TetraTech
Implementing Partners
PFAN-Asia Program
• 5 Years: August 2013 - August 2018 • Regional program based in Bangkok • ~10-15 advisors and staff
Project Information
• Mobilize $1 billion in clean energy investment • Reduce GHG by 40 million tons of CO2e • Make a sustainable platform to run PFAN-Asia
Goals USAID’s PFAN-Asia
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The problem: In between willing investors and good projects: there is a “Missing Middle”
Coaching & Mentoring
Policy Dialogue
Clean Energy Businesses & Projects
($1M to $50M in size)
Governments (policies)
Training Financial
Institutions
Investment Sources (financiers & banks)
Seeking investors Seeking projects
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Policy dialogue: What Advice do we Give Governments?
Policy Dialogue
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Feed in Tariff
Tax Breaks for RE
Priority Access to the Grid
RE Law and RE Policy
Renewable Portfolio Standard
Governments (policies)
Question: Does the Policy Advice Really Work?
Policy Dialogue with Governments: Fix the Enabling Environment to get RE Investment Flowing
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Does the Policy Advice Really Work? Methodology:
Quantify enabling environment (EE) by
an index
Quantify RE potential, in MW, in
each country
Quantify RE potential, in MW,
actually realized in each country
Assess the RE realized as a
percentage of potential
Development hypothesis: percent RE realized depends
on EE Score
See if percent RE realized and EE
index are correlated
Renewable Energy Potential in PFAN-Asia Territory
Renewable Energy Realized as Percent of Potential
Country Total Renewable
Electricity Installed Capacity (MW)
Total Installed Capacity
(MW)
RE Installed as a % of RE Potential
Cambodia 19 34,800 0.1% Indonesia 6,076 305,326 2.0% Laos 1,845 51,958 3.6% Malaysia 2,107 64,977 3.2% Philippines 5,400 128,738 4.2% Thailand 4,299 60,356 7.1% Burma 800 108,811 0.7% Vietnam 5,531 156,582 3.5% Bangladesh 264 58,575 0.5% India 56,285 519,092 10.8% Maldives - 31 0.0% Nepal 664 50,403 1.3% Sri Lanka 1,395 31,360 4.4%
Enabling Environment: What are the dimensions? 1. Existence of a Renewable Energy Policy 2. Existence of a Renewable Energy Law 3. Existence of Renewable Energy Target, e.g. 20% RPS 4. RE Purchase Obligation, utility has to buy the power 5. Tradable Instruments for RE (REC's, green tags, carbon credits) 6. Feed-in Tariffs 7. Grants / Capital Subsidies / Incentives, Tax credit for construction 8. Incentives for Generation / Production Tax Credits 9. Income Tax Holiday / Exemptions 10. Customs Duty Exemption for importing equipment 11. Other Exemptions (VAT, excise tax exemption)
Enabling Environment Country Scores Country1 Country
Score Regulatory Fiscal and Financial Incentives
Ren
ewab
le
Ener
gy
Polic
y
Ren
ewab
le
Ener
gy L
aw
Ren
ewab
le
Ener
gy
Targ
et
RE
Purc
hase
O
blig
atio
n
Trad
able
In
stru
men
ts
Feed
-in
Tarif
fs
Cap
ital
Subs
idie
s
Prod
uctio
n Ta
x C
redi
ts
Inco
me
Tax
Hol
iday
Cus
tom
s Ex
empt
ion
VAT
Exem
ptio
n
ASE
AN
Cou
ntrie
s
Cambodia 1 •
Indonesia 9 • • • • • • • • •
Laos 2 • •
Malaysia 9 • • • • • • • • •
Philippines 10 • • • • • • • • • •
Thailand 6 • • • • • •
Vietnam 7 • • • • • • •
Burma 2 • •
Sout
h A
sian
C
ount
ries
Bangladesh
7 • • • • • • •
India 11 • • • • • • • • • • •
Maldives 3 • • •
Nepal 7 • • • • • • •
Sri Lanka 8 • • • • • • • •
1 http://www.map.ren21.net/pdf/renewablepolicytable.aspx, IRENA profiles, country-specific primary documents
POINTS OF CONTACT
Dan Potash, [email protected] PFAN-Asia Chief of Party Khan Ram-Indra, [email protected] USAID Contracting Officer’s Representative
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