financing workshop
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ASES Solar 98. FINANCING WORKSHOP. John Kadyszewski Winrock International June 19, 1998. Winrock Perspectives Primary Challenges Winrock Actions What have we learned?. Overview. Private capital essential for renewable energy market development - PowerPoint PPT PresentationTRANSCRIPT
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FINANCING WORKSHOPFINANCING WORKSHOP
John KadyszewskiWinrock International
June 19, 1998
ASES Solar 98
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OverviewOverview
• Winrock Perspectives
• Primary Challenges
• Winrock Actions
• What have we learned?
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Winrock PerspectivesWinrock 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
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Goal—Attract
private capital
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New Role for Public InstitutionsNew Role for Public Institutions
• Set development priorities
• Create enabling environment
• Reduce credit risk
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Primary ChallengesPrimary 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
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Cost of CapitalCost of Capital
GDP
Real Interest Rate
Time
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Winrock ActionsWinrock Actions
• Build local capacity
• Implement model projects
• Catalyze investment
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Build Local CapacityBuild Local Capacity
• YBUL• PEI• Fundacíon Solar• REGAE• EACA
• SELCO• MICROSUL• ABEER• ACOPE• APETINDO
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What have we learned in Asia?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
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Indonesia Wind SystemsIndonesia Wind Systems
• Target markets where energy willincrease income
• Strengthen NGO capability tomaintain systems and collect fees
• Technical assistance to assureincome growth
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Marketing Mechanisms of Marketing Mechanisms of SELCO IndiaSELCO India
• Cash sales
• Sales through banks
• Leasing
• Sales via IREDA loans
• Sales through local institutions
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Preparing Projects in ChinaPreparing Projects in China
• Form local joint venture company
• Prepare projects for Swiss environment fund
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PEI Finances Renewable EnergyPEI Finances Renewable Energy
• Strengthen enabling environment
• Conduct local due diligence
• Reduce transaction costs
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What have we learned in Latin What have we learned in Latin America?America?
• Financing operational infrastructurein the DR
• Invest through communities in Brazil
• NGO investment in Guatemala
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REGAE--Financing Operational REGAE--Financing Operational Infrastructure in the DRInfrastructure in the DR
• Lease-to-own program
• Provide credit for service companies
• Co-invest with local banks
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Invest Through Communities Invest Through Communities in Brazilin Brazil
• World Bank loan for Ceara, Bahia, and Minas Gerais
• 1-3 million households over 10 years
• Follow community priorities
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NGO Investment in Guatemala--NGO Investment in Guatemala--Fundacíon SolarFundacíon Solar
• Educate donors on importance of credit versus gifts
• Link renewables with relevant applications
• Leverage new funds
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Fundacíon Solar NGO PartnersFundacíon Solar NGO Partners
• Plan International
• World Vision
• UN High Commissioner for Refugees
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New Technology New Technology Changing OptionsChanging Options
• Improved access to information
• New ways to increase rural productivity
• Enhanced quality of life
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Stages of Finance in ChinaStages of Finance in China
• Allocation of government resourceswithout recovery
• Allocation with recycling
• Recycling with market interest rates
• Commercial financing
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Renewable Energy IssuesRenewable Energy Issues in China 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