stéphane tromilin 24th of june 2015 tailoring financing to institutional settings
TRANSCRIPT
Stéphane Tromilin24th of June 2015
Tailoring Financing to Institutional Settings
AFD at a glance1
French donor, created in 1941
AFD in islands2
States
Atlantic Pacific Indian Ocean
Antigua-et-Barbuda
ComoresCap Vert
Dominique Indonésia Grenade Madagascar Guinée-Bissau Maurice Saint-Christophe-et-Niévès Philippines Sainte-Lucie Sri Lanka
Saint-Vincent et les GrenadinesSeychelles
Sao Tomé et Principe
Suriname
French Overseas Provinces
Atlantic Pacific Indian Ocean
Guadeloupe Wallis et Futuna MayotteGuyane Nouvelle Calédonie Réunion
Martinique Polynésie française
Saint Barthélémy
Saint Martin
On the 2011-2015 period, AFD committed in the renewable energy sector:
-€335M in SIDS;
-€125M in French Overseas Provinces.
Different tools for different needs
Public policy promoting renewable energy (€20 – 200M) Sovereign loan with technical assistance
Political will and inter-ministerial coordination
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Example in Mauritius: €125M budgetary loan dedicated to the Mauritius
sustainable development strategy with a particular focus on sustainable energy
€2M grant for technical assistance
Project developed by a public entity (€20 – 100M) Direct loan
Solid utlity balance sheet required Sovereign lending (on-lent or direct loan with a sovereign
guarantee)
Project to be recorded in the national budget
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Reinforcement of the grid implemented by ELECTRA: €26 million loan to the government of Cabo Verde on-lent to
ELECTRA to reinforce the system in order to allow an increase of renewable energy injection on the grid
Different tools for different needs
Project developed under an independent power producer (IPP) scheme (€5 – 50M) Donors subsidiaries dedicated to private companies finance funding
PPA and a solid off-taker
5 Different tools for different needs
Examples of loans to SPV: €40M to Albioma Gallion in Martinique 34 MW to be fed by the agricultural residues including bagass from
the neighbouring sugar mill Electricité de France, the French utility, as off-taker
€2M to Akuo for Agrinergie III in la Réunion 1,9 MWp anticyclonic greeenhouses PV power plants Synergy between power production and agriculture Electricité de France, the French utility, as off-taker
Small IPPs and auto-consumption (€ 100k - 5M) Credit facilities to local banks with financial incentives
Need of banks proactive involvment in the sector
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Credit facility to local banks in Mauritius €60M to two banks: Mauritius Commercial Bank (MCB) et la
State Bank of Mauritius (SBM). Technical assistance financed by a €1.7M EU grant Maximum capital expenditure per project: €7M
Different tools for different needs
Key take-away
Public entities may easily access donors funding for sizeable projects if (i) they have a solid balance sheet OR (ii) they benefit from a sovereign guarantee
IPP scheme may attract more funding but it requires a PPA with an adapted selling price and a solid off-taker: to establish a comprehensive regulatory framework should be the priority for a government which aims at promoting renewable energy development by the private sector
In some islands, to generate electricity for its own consumption is already worthwhile: local financing institutions are well-positioned to promote small size units for auto-consumption or net-metering
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