Showcases Of Successful Renewable Energy Financing

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This brochure highlights innovative solutions for renewable energy financing that should help policy makers to better understand how policies can be improved to facilitate financing. The materials are provided by contributors who are working or have a direct contact with the projects. The target audiences of the brochure are policy makers, as well as private stakeholders such as: project developers, project owners, financiers, consultants, etc. The following renewable energy technologies are included: all biomass, geothermal, solar, tidal and wind projects of diversified size, ranging from 0.2 MW to 600 MW, and across OECD countries, particularly in this book: Chile, Estonia, Germany, Latvia, Netherlands, Scotland, Turkey, United Kingdom and United States of America.

Transcript of Showcases Of Successful Renewable Energy Financing

  • Case Studies

    SHOWCASES OF SUCCESSFUL

    RENEWABLE ENERGY

    FINANCING

    February 2016

    Se

    rgey

    Niv

    ens/

    Foto

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  • 1

    CASE STUDIES

    S H OWC A S ES O F S U C C ES S F U L

    R E N E WA B L E E N E R GY F I N A N C I N G February 2016

    S C O P E

    This brochure highlights innovative solutions for renewable energy financing that should help policy makers to better

    understand how policies can be improved to facilitate financing. The materials are provided by contributors who are

    working or have a direct contact with the projects. The target audiences of the brochure are policy makers, as well as

    private stakeholders such as: project developers, project owners, financiers, consultants, etc.

    The following renewable energy technologies are included: all biomass, geothermal, solar, tidal and wind projects of

    diversified size, ranging from 0.2 MW to 600 MW, and across OECD countries, particularly in this book: Chile, Estonia,

    Germany, Latvia, Netherlands, Scotland, Turkey, United Kingdom and United States of America.

    The projects are arranged alphabetically, based on the category and then, the name of the projects. The project alloca-

    tion into each category is only relative, some projects could belong to more than one category.

    C O P Y R I G H T

    This publication should be cited as:

    IEA-RETD (2016), Case studies Showcases of successful renewable energy financing, [Mai Nguyen, et al., IEA-RETD Op-

    erating Agent], IEA Implementing Agreement for Renewable Energy Technology Deployment (IEA-RETD), Utrecht, 2016.

    Copyright IEA-RETD 2016

    (Stichting Foundation Renewable Energy Technology Deployment)

    First edition

    Sergey Nivens/Fotolia

  • 2

    Renewable energy (RE) already plays an important role

    in todays energy landscape. But its role will and has to

    increase even further, if societies want to build future

    sustainable energy systems and economies. Due to Go-

    vernment incentives and the improved business case

    for RE, global investment in renewable power and fuels

    was 17%1 higher in 2014 than the previous year, and

    renewable energy may become the first priority energy

    source for investors in the future.

    However, the business case for renewable energy often

    differs from business as usual: through the current de-

    pendency on government support, the relative high

    specific upfront capital expenditures, the particular real

    and perceived risks, the increased number and different

    type of actors (like prosumers), to name a few. It is hen-

    ce fair to say that the accelerated deployment of RE will

    strongly depend on the success of new, innovative fi-

    nancial structures. RE financing faces challenges, but

    challenges bear innovation, and in many places in the

    world, new, improved or truly innovative ways of finan-

    cing are explored.

    IEA-RETD, the implementing agreement under the Inter-

    national Energy Agency dealing with policies and mea-

    sures to accelerate the deployment of renewable ener-

    gy, believes in the approach of sharing good examples,

    which can spread the successful enthusiasm to more

    places in the world. Governments, developers,

    financiers, consultants and other parties may learn from

    each other and get inspiration for solutions in their own

    region or domain.

    In this brochure, we chose 21 renewable energy pro-

    jects in OECD countries with a new or innovative finan-

    cing approach. The brochure is expected to give rene-

    wable energy policy makers a better understanding on

    how to improve their policy instruments. Well designed

    policy instruments that remove risks for investors can

    reduce costs of capital significantly, hence the cost of

    renewable energy, which in turn will accelerate its de-

    ployment. Project developers and financiers may be

    triggered to explore solutions for their own particular

    challenges. We include the contact of the contributors

    and please feel free to contact for more information.

    The brochure addresses the following types of finan-

    cing:

    Community funding

    Crowdfunding

    Private funding, and

    Public-private cooperation

    We are happy to receive comments and contributions

    from you, allowing us to constantly learn and improve

    on financing practices, on their relation to policy instru-

    ment design.

    1: Global Trends in Renewable Energy Investment 2015, Frank-

    furt School-UNEP Centre/BNEF, 2015.

    TA B L E O F C O N T E N T

    Name of the project Type Category Page

    Oxfutures Programme All Community funding 4

    Westermeerwind Wind Community funding 5

    Bettervest All Crowdfunding 6

    Hawaii Green Bonds Solar Crowdfunding 7

    Hellegatsplein Wind Crowdfunding 8

    Oakapple Berkwickshire Solar Crowdfunding 9

    Windcentrale Wind Crowdfunding 10

    Zelfstroom Solar Crowdfunding 11

    Efeler Geothermal Power Project Geothermal Private funding 12

    Gemini Wind Private funding 13

    Gode Wind 1 Wind Private funding 14

    Graanul Invest Biomass Projects Biomass Private funding 15

    Ivanpah Solar Electric Generating System Solar Private funding 16

    Nordsee 1 Wind Private funding 17

    Tiburcio Vasquez Health Center Solar Private funding 18

    Veja Mate Wind Private funding 19

    European Energy Efficiency Fund All Public-private cooperation 20

    National Energy Savings Fund All Public-private cooperation 21

    Meygen Tidal Project Tidal Public-private cooperation 22

    Thga Erneuerbare Energien All Public-private cooperation 23

    Vicua Solar PV Solar Public-private cooperation 24

    Glossary 25

    F O R E W O R D

    Matthew Kennedy

    Sustainable Energy Authority of Ireland (SEAI)

    Chairman of the IEA Implementing Agreement for

    Renewable Energy Technology Deployment, IEA-RETD

  • 3

    Hawaii Green Bonds

    $150 million - Asset-backed securities

    DBEDT

    Gemini offshore wind

    600 MW - Project finance

    Northland Power Inc. (60%)

    Hellegatsplein onshore wind

    12 MW - Crowdfunding

    Qurrent

    Westermeerwind farm

    144 MW - Community funding

    Siemens

    Windcentrale wind farm

    Various projects - Crowdfunding

    Windcentrale

    Zelfstroom solar PV

    70 houses - Crowdfunding

    Zelfstroom

    Netherlands

    Ivanpah Solar Generating System

    377 MW - Private funding

    BrightSource Energy

    United States

    Vicua Solar Project

    6.8 MW - Public-private cooperation

    Ecosolar and DCIF

    Chile

    Gode Wind One offshore

    330 MW - Project bond

    DONG Energy

    Nordsee One offshore wind

    332 MW - Project finance

    Northland Power Inc. (85%)

    Veja Mate offshore wind

    402 MW - Project finance

    Highland Group Holdings

    Bettervest platform

    Various projects- Crowdfunding

    Bettervest GmbH

    Thga Erneuerbare Energien

    207 MW - Public-private cooperation

    Thga Erneuerbare Energien

    Germany

    Oakapple Berwickshire solar

    1.44 MW - Crowdfunding

    Abundance

    Oxfutures Programme

    Various project - Community funding

    Oxfutures

    Meygen Tidal Project

    398 MW - Public-private cooperation

    Atlantis Resources

    United Kingdom

    European Energy Efficiency Fund

    265 million - Public-private cooperation

    EIB, EC and Deutsche Bank

    Luxembourg

    Tiburcio Vasquez Health Center

    0.2 MW - Private funding

    Demeter Power

    National Energy Savings Fund

    300 million - Fund

    BZK, Rabobank, ASNBank

    Efeler Geothermal Power Project

    170 MW - Private funding

    Gurmat Elektrik Uretim AS

    Turkey

    Graanul Invest Biomass Projects

    148 MW - Private funding

    AS Graanul Invest

    Estonia & Latvia

    Background cunico/Fotolia

    Icons Ecofys

  • 4

    OxFutures is a partnership among Oxford City Council,

    Oxfordshire County and the Low Carbon Hub, co-funded

    by the Intelligent Energy Europe programme of the EU.

    Oxfutures is mobilising large-scale investment to devel-

    op renewable energy and energy efficiency projects

    across the city and county. The majority of investments

    are through community energy projects supported or

    delivered by the Low Carbon Hub.

    The Hub is a social enterprise established with seed

    funding from the city council. It works with corporate

    partners to develop, finance and manage renewable

    energy schemes for community benefit.

    The Hub includes two organisations (Industrial & Provi-

    dent Society - IPS and Community Interest Company -

    CIC). This structure benefits from UK tax incentives and

    arrangements for social enterprises, in combination

    with the UK feed-in tariff scheme for small-scale solar

    PV.

    This business model was designed to be flexible and

    respondent to feed-in tariff (FIT) degressions. To avoid

    massive uncertainty for investors and huge inefficien-

    cies in running a business, our recommendations for

    government would be:

    Manage policy transition carefully by avoiding rapid

    change.

    Continue to support community benefit models

    which provide energy inve