the renewable energy market in asia
TRANSCRIPT
Sustainable Energy Thematic Session
Brief Presentation by Clifford Chance, Atkins Acuity and INGConference: SFC Asia Launch EventSingapore, 22 November 2016
November 2016
Energy Efficiency and Renewable energy projects are key to reduce GHG emission in Asia
41.4% Of the total investment needed are in the power
sector (2013-2020)
34%
17%
Source: IEA, World Energy Outlook Analysis
SolarWindBiomass and W2E
Renewables
Energy Efficiency
BiofuelsSmall hydro GeothermalMarine
Renewable energy
Energy Efficiency
To avoid 3 degree of global warming, the following measures should be implemented in Asia
by 2020…..
Energy savingBuilding retrofittingGreen BuildingTransport
Energy StorageMethane reduction
Inefficient coal plants
Fossil-fuel subsidies
Buildings have a large impact on the environment…
3
40% of global energy use
60% of total electricity consumption
1/3 of global GHG emissions
25% of global water consumption
40% of global resources
Source: UNEP
With population growth and increasing urbanization, this will only get worse unless action is taken
4
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H2 Building, Tianjin, China
Green building activities in the future
0%
10%
20%
30%
40%
50%
60%46%
38% 37%27% 25%
55%
40%
19%13%
45%Global
Planned green
activity over the
next three
years*
20% of construction cost 30% energy consumption 35% in Carbon emissions
7 years projected investment recovery period4 Million Yen estimated operations cost savings per annum
*Source: Word Green Buildings Trends 2016
November 2016
Promising Renewable Energy Market (e.g. ASEAN)
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
RE Target Selling Tariffs Incentives Financing Support Permits and Licenses Technical Aspects
Target share of renewable energy up to 50% and triple renewable energy generation capacity to 15GW by 2030
Philippines
Target share of renewable energy from < 5% to 25% by 2025
Indonesia
No declared renewable energy mix target but aims for 350MW of solar installations on public sector rooftops by 2020.
Singapore
Target share of renewable energy from 6% in 2015 to 11% by 2020
Malaysia
Target share of renewable energy up to 25% by 2022
ThailandTarget share of renewable from 3% in 2010 to 5% by 2020 and 11% by 2050.
Vietnam
Source: ACE – ASEAN, Eco-Business
November 2016
SFCA - Extended Renewable Financing Platform
Nam Theun 2 1070MW HydroLaos
EDC Burgos150 MW WindfarmPhilippines
Sarulla330 MW GeothermalIndonesia
IP5WTE
Singapore
Nagi13 MW Solar PVJapan
SFCA ConsiderationsSmall and large deals
Realistic development periodPositive E&S impactFocused bank groupBespoke Structure
E-submission
SFCA is complementary to conventional project financing. Taking into account the above considerations, SFCA intends to accelerate, collaborate, shaping, digitalize the fund raising for sustainability deals in the region
ING’s conventional financing in Asia
November 2016
Bankability, risk allocation considerations remain important
Gov’t Suppor
t
Tariff levels and
currency
Supply vs
Demand
GFM and terminat
ion regime
Land/ Right of
Way
GFM and terminati
on regime
Technical, E&S, EPC, O&M
Fuel availabili
ty
KYC, CDD
DSCRs and IRRs
STAKEHOLDERS
• OFFTAKER
• GOVERNMENT
• SPONSORS
• BANKS
• ECA / DFIS
• CONTRACTORS
• OPERATORS
November 2016
Zoom on energy storage – an increasingly bankable asset
Clifford Chance’s energy storage experience
Lakeland Solar & Storage Project, Nth Qld
•13 MW PV with 5.3MWh/1.4MW LI battery
• Australia’s first grid-connected, utility scale solar and storage project
Redstone, RSA
•100MW CSP tower
•molten salt storage of up to 12 hours
Enhanced Frequency Response, UK
•200MW of EFR; four year contracts
•Acting for a leading technology provider
Proponents will benefit from the global experience of Panel members, which will be important for the financing of newer technologies
Energy storage
Drivers
•Intermittency issues
•Ancillary services revenues
•Price arbitrage
•Grid cost savings
•Decentralization
•Costs falling rapidly
•Off-Grid applications