Haiti: "Open For Business"

HAITI: OPEN for BUSINESS OCTOBRE 1st2009investment opportunities in renewable energiesDieuseul ANGLADE, eng.Director General Bureau of Mines and Energy
International Business Meeting, Port-au-Prince, 1-2 October, 2009
BME

Presentation Plan
Overview of the energy Sector
Investment opportunities
Conclusion
BME

1. Overview of the energy sector
Haiti energy “consumption” matrix
(% TOE)
Haiti energy “markets” matrix
(USD)
hydro
Other petroleum
fuels
Petroleumproducts
25%
Wood
Diesel
(380 M)
Biomass (wood & charcoal)
72%
Wood-Charcoal
(150 M)
* Most wood-fuel consumed by SMEs (Moonshine, drycleaners, bakeries)
BME

1. Overview of the energy sector
The energy demand
Transportation, industry and domestic consumption
380 000 tons de charcoal per year for families: a US$ 150 M market
200 000 tons of wood in the SMEs : a US$ 60 M market
130 millions gallons of diesel : a US$ 380 market
BME

2. Investment opportunities
2.1 Liquid fuels
bio-fuels (biodiesel)
Progressive substitution of 45 million gallons of diesel consumed by the thermal generators in power plants.
130 million gallons of diesel consumed yearly.
The telecommunications companies consume about 4% of the imported diesel.
BME

2.2 Cooking energies
WoodlotsProject of creation of woodlots in unused lands
Substitution of keroseneReplacement of kerosene lamps with lighting by small PV systems in rural areas
Briquette production
Production of briquettes from waste/renewable sources of biomass as substitutes for wood & charcoal
BME

2.1 Wind Energy
Lac Azuéï
10 km from P-au-P grid; 50 MW potential
wind speeds : 5 to 7 m/s.
Northern Haiti
Near Cap-Haitien grid; 2 MW potential
wind speed : 5 to 6 m/s.
The preliminary study is being executed by 3E, a Belgian firm.
Feasibility studies will be undertaken next.
BME

2.3 Solar energy
Solar panel assembly plants
Small PV rural solar projectsFor lighting, pumping, seafood and vaccine conservation
BME

The energy market is the second largest in Haiti after the food market.
There are already good examples of successful public-private partnerships in the Haitian Energy Sector, where the Government has committed to buying all the power produced for 5 to 15 years:
SOGENER, HAYTRAC, E-POWER
3. Conclusions
BME

3. Conclusions
The Government of the Republic of Haiti has also committing to the following actions :
Elaboration and submission to the vote of Parliament a bill for the creation of the enabling framework for the acceleration of the use of renewable energy and the associated technologies ;
Implementation of various forms of incentive mechanisms for the promotion of private sector investment in renewable energy (production and deployment);
BME

3. Conclusions
Pursuing actions related to the development of biofuels, in particular: feasibility studies, R&D and the reinforcement of Public-Private partnerships;
Carrying out a public awareness campaign for renewable energy, utilizing instruments designed to inform and motivate.
HAITI IS WORKING HARD TO MAKE THE ENERGY SECTOR A GROWING AND SUSTAINABLE SECTOR
BME

THANK YOU
Dieuseul ANGLADE, Ing. Directeur General Bureau des Mines et de l’Énergie
Email : dsanglade@yahoo.com Web site: www.bme.gouv.ht
BME

Rolando Gonzalez-Bunster
IDB International Business Meeting
Investment in Wind Power Generation from an International Investor’s Perspective
BasicEnergy

Economic and Commercial Aspects
Country’s political situation should be stable and should present macroeconomic growth in the short term.
Payment risk needs to be minimal
Capital for these projects migrates very easily. If too much risk is perceived in a certain country and/or market, investors will identify alternate places to deploy their capital and develop similar projects where less risk is perceived.
Long Term (15-20 yr) Power Purchase Agreements (“PPAs”) are a must to secure financing.
Involvement of multilateral funding is highly desirable.
Commercial financing in developing countries tends to be very short term with high interest rates which limits the possibilities to develop capital-intensive projects like wind power projects.
Financing sources like IDB play a significant role in promoting these projects in developing
countries.
BasicEnergy

Site Selection
Initial site selection is a very methodical and technical exercise.
Once a site is selected, significant time and resources need to be dedicated to research its feasibility.
Wind atlases which contain macro wind measurements are not enough (these only provide general guidelines). Site-specific towers need to be erected in order to measure wind behavior for at least one (1) year.
For financing purposes, these site-specific measuring towers need to be measure wind speeds at least 2/3rds the height of the expected hub height of the wind turbines (as high as 100+ meters).
These measurements need to be validated by independent third parties
An investor will typically invest in securing the site and purchasing wind turbines
once the site is validated by site-specific wind measurements
BasicEnergy

Permitting
Too much bureaucracy hinders project development.
In countries where wind projects have not been developed, authorities are typically hesitant to fast-track permitting - this creates a barrier against developments.
Other countries are competing for these projects and are willing to have more streamlined permitting processes.
Permitting is required for financing, hence if the permitting process is not clear and streamlined, achieving financing can become challenging.
A single point permitting window is highly desirable
BasicEnergy

Technical and Construction Aspects
Available offloading ports are one of the early items that need to be identified when making an investment decision.
The lack of proper infrastructure to offload the equipment from the ships could easily eliminate the chance for a successful project.
Access to site from to the unloading point to the each of the towers’ location is also an important task that needs to be performed early on in the investment decision process.
If too much investment is required due to: 1) poor road conditions; 2) tight curves that don’t allow blade transportation; or 3) Mountainous terrain; then project feasibility can be jeopardized.
Access to grid as close to the site as possible.
A long transmission line can increase project cost significantly and threaten the project’s feasibility.
Terrain profile can influence balance of plant costs
BasicEnergy

Carbon Credits
Although the variable costs of wind projects are minimal, the construction aspect is very capital-intensive. As such, power prices need to be high enough to repay the financing and allow for an acceptable return to the investor. Energy prices are typically not enough to allow for this.
To solve this issue, carbon credits are one of the few lifelines to make projects feasible.
The current Clean Development Mechanism (CDM) expires 2012. Difficult to predict carbon credit impact on a project’s economics post 2012.
A wind project in Haiti would displace Diesel (no. 2) generation – this is a “cleaner” fuel than Coal or Heavy Fuel Oil which results in less carbon credits than the same project could generate in other countries with a “dirtier” energy matrix.
BasicEnergy

Thank You!
Rolando Gonzales Bunster, Basic Energy
BasicEnergy

Prospects for Jatrophacurcas cultivation in Haiti
CHIBAS
CHIBAS

Why Jatropha?
Haiti presently imports over twice as much diesel fuel as gasoline (ethanol is a substitute of gasoline)
Haiti heavily depends on diesel for the production of electricity
Feedstock for ethanol production would compete for the best arable land; which is limited
Ethanol would have a relatively small local market
Oil processing and production of bio-diesel is scalable
Plant oil can be used directly (for local electric power generation, mills, irrigation, and small industry)
And Jatropha is potentially a multipurpose crop (reforestation & restoration of degraded land, biodiesel, SVO, charcoal briquettes, high protein animal feed and honey)
CHIBAS

Energy matrix (Market)
> USD 350 M
*
% of energy mix (market)
Tons of Oil Equivalent
> USD 150 M
> USD 60 M
CHIBAS
The market for Biodiesel
* Most of the wood is not sold on the market

Land availability for Jatropha
How much land can be usedto grow Jatropha ?
Expected yields ?
What are the profits from growing Jatropha ?
Mapping the risks (red):
Land use, environment,
areas suitable for food crops,
other socio-economic risks, etc…
Land use map
CHIBAS

Land availability for Jatropha
In green: area where you can grow Jatropha with limiting the negative impacts.
A: >800,000 ha
B: >500,000 ha
A
B
There is enough land to meet Haiti’s diesel market!
CHIBAS

A multipurpose cropThe markets for Jatropha
Edible Jatropha
Non edible Jatropha
Oil & Biodiesel (liquid biofuels)
100 million gallons (280 M USD)
Charcoal briquettes80,000 ton (23 M USD)
High protein animal feed550,000 ton (165 M USD)
Honey12,000 ton (36 M USD)
Oil & Biodiesel (liquid biofuels)100 million gallons (280 M USD)
Charcoal briquettes200,000 ton (60 M USD)
Honey12,000 ton (36 M USD)
CHIBAS

Working with small holdersMaximizing profit along the value chain
Integrate small holders to the Jatropha value chainThere is an opportunity to develop a market chain integrating small holders and producers; one that is profitable to ALL the actors of the value chain (IDB market study)
“LwilAgogo” – building strategic alliances along the value chainProfitable businesses integrating the small holders and producers
CHIBAS

CHIBAS at the service of the local agro-industry
CHIBAS will be improving, releasing and promoting the use of improved Jatropha varieties as multipurpose crops (food/feed and energy);
CHIBAS is a technical center to serve the farmers and the agribusiness sector in getting access to the best and most adequate technology and the best agricultural practices;
CHIBAS realizes feasibility studies to establish plans for the formulation of project designs (or projects) and investment strategies (including a complete sustainable and profitable value market chain assessment) maximizing incomes for the farmers and the local communities.
CHIBAS

Thank You!
Gael Pressoir, CHIBAS, ExecutiveDirector
Geneticist & Plant Breeder
gael.pressoir@chibas-bioenergy.org
Skype: gael_pressoir
Phone: +509 3465 0449
CHIBAS

Can the biodiesel valuechainbeanopportunityforPrivate Sector Investments in Haiti?
Source: Biodiesel Value Chain Feasibility Study for Haiti – IDB and USAID/DEED
BID & USAID-DEED

The study has considered 3 lines of business
FARM BUSINESS
JATROPHA PRODUCTION CENTER (JPC)
BIODIESEL
Jatropha pressing
Machine
to press
jatropha
Chemical plant
Cake
Oil
Solid fuel-pellet
IDB & USAID-DEED

The main products have been considered
FARM
JATROPHA PRODUCTION CENTER
BIODIESEL
INDUSTRY
GENETICR&D
S
E
E
D
S
Notes:
Final products considered in the study
Final products subject to more investigation but with potential
% Shown as % of dry fruit.
IDB & USAID-DEED

Logical Framework
Opportunity:
There is a market
Private Investments
provide good returns
3A benefits are huge
Strategic Options for Haiti:
Private Sector
Public Sector and
Development agencies
Scenario we can
accomplish together
Challenges:
Entrepreneurship
Regulation & Public Investments
R&D best crops
Focus of development actors: arid/semi-arid lands
IDB & USAID-DEED

Income/ ha1 = $229
65,000 ha
700 ha
6,500 ha
Except for the small scale biodiesel plant, the three businesses present NPV positive in all scenarios
Variation of NPVs according to oil prices and jatropha land productivity
Farm business:
NPV/ ha
Jatropha Production Center business
NPV/ JPC
Biodiesel business:
NPV/ industrial plant
1 Income in fifth year
Asumption:
Diesel pumpprice in Haiti: $2,31
IDB & USAID-DEED

$US2,5/gallon and 200gl oil/ha seem to be the break-even point for the Haitian biodiesel business
Variation of NPVs according to oil prices and jatropha land productivity
($US / gal)
($US / gal)
Break-even point
Assumptions:
Diesel price at pump in Haiti
Oilprice (JPC business): 50% diesel price
Jatrophadryfruit (Farmbusiness): 10% oilprice
JPC businessincludes pellets business
($US / gal)
IDB & USAID-DEED

$1000-1150/ha
238
2210
22100
Jobs
35
195
260
3250
3250
2600
$447/ha
Salary
Profits
65,000 ha
700 ha
6,500 ha
The economic impact in terms of development of each business is also significant in all scenarios analyzed
Farm business:
Income/ ha
Jatropha Production Center business
Income/ ha
Biodiesel business:
Income / industrial plant
IDB & USAID-DEED

250,000 owners
184,000-203,000 jobs(170,000 approximately on the farms)
Income per capita(1):
> $460/ owner (=$2000/ owners with the JPC’s)
> $220/ worker
Environment:
Replace the entire charcoal market ($320M)
Renewing arid lands for fruit crops in the future
450,000 jobs
For a scenario of 500,000 ha of jatropha planted, 450,000 jobs can be created. Also, $460 of income per year can be generated for a minimum of 250,000 producers
VISION
500,000
HECTARES
Attractive vision because:
scheme of farm owners integrated with the JPC’s
arid or semi-arid land
can possibly be a transitory and complimentary culture
efforts both focused and at a national scale
(1) From the fifth years and on
IDB & USAID-DEED

Thank You!
Eduardo Almeida, BID
IDB & USAID-DEED

Eucalyptus Project for Biomass Production
FGV - BID

Methodology
Agroclimatic Zoning
LandCapability
FGV - BID

Phase 1 – Land Suitability
Eucalyptus
FGV - BID

Eucalyptus in the World
Source: ABRAF, 2007
FGV - BID

Haiti Energy Matrix
Area Covered by Forest:
3,8%
Source: IEA.
FGV - BID

Biomass Project
Manufacturing
Bricket
Firewood Stove
FGV - BID

Process of Forest Production
18 month
FGV - BID

Forestry Project
FGV - BID

Forestry Project
Total area: 6.000ha – 1.000ha per year
Early planting
First harvest
FGV - BID

Biomass Project
FGV - BID

Total Investments per unit of 1.000ha, USD
FGV - BID

ANOTHER ALTERNATIVE OF BIOMASS: ELEPHANT GRASS
Production cost of elephant grass= USD 20,00/t
Planting and harvesting in the same year
FGV - BID

Thank You!
Cleber Lima Guarany
cleber.guarany@fgv.br
FGV - BID

The Biodiesel Haiti project
Biocarburants d’Haiti, SA

Who we are
Biocarburantsd’Haiti S.A.
Haitian Corporation established in 2007
Major stakeholders: 4 local entrepreneurs: Reynold Roy, Reginald Noel, Georges Garnier, PascaleOriol
Paid up capital: us $ 120,000
Present activity: production of biodiesel on an experimental basis out of used vegetable oil collected from local restaurants
Current production: 500 gal /month sold to individuals

What do we want to do ?
Based on experience acquired over the past 2 years:
Transform current activity into a biodiesel production project out of jatropha oil

How do we want to do it?
Phase 1 : use 1200 hectares of land located in plateau central and owned by one of the major stakeholders to plant jatropha.
Phase 2 : encourage small farmers to participate in a jatropha plantation program (with the help of winner project usaid)
Incentives will include: free seeds from our nurseries, technical assistance and a guaranteed purchase agreement at a pre approved price

Our production Goal: 1 Million gallons of biodiesel
Phase 1: 300 gal/ha/year
for a total production : 360,000 gal of biodiesel
Expected time to full output : 3 years
Phase 2: 640 000 gal out of jatropha plantations own by small farmers
Expected time to full output: 3 years from end of phase 1

Target Market
Private industries with electricity generation capacity (generators)
currently 22 % of Haiti’ s diesel consumption or 25 M gal / year

What price?
At today’s diesel price of $ 2.80 we expect to be 10 to 15 % cheaper
At today’s price, sales at end of phase 2 will amount : $ 2.5 millions
Expected net profit on sales : 21 %

What is the estimated investment?
2,8 Millions us $ for plant and related equipment as well as plantation program

What are we looking for in potential partners?
Help in refining and completing project document
Equity financing
Assistance in securing bank financing
Technical, logistical and managerial support once project launched

Thank You!
Reginald Noel, Biocarburants d’Haiti SA,
biodieselhaiti@hotmail.com

WINECO-TEVASAEthanol plant
TEVASA

Terminal Varreux
WHARF SPECIFICATION
DRAFT 11.0 METERS FOR WHARF
9.8M FOR TANKERS
LOA 190 METERS MAX
FENDERS YOKOHAMA
LIST OF TANKS
46,000 BBLS 16
46,000 BBLS, WITH FLOATING ROOF 2
25,000 BBLS 2
17,500 BBLS 1
8,300 BBLS 4
TEVASA

Caribbean Basin Initiative (CBI)
TEVASA
Ethanol produced/processed in beneficiary countries are permitted to enter the US duty- free
Ethanol has to originate from bio-mass sources and has to have undergone a full transformation process in the CBI country
Tax saving of US 54 cents a gallon

30 million gal.year dehydration plant
TEVASA
In full operation by mid 2010
Expansion possible to 60 M gal
Corresponding tanks and infrastructure additions to accommodate the increased volume are planned

Processing ethanol for the US market
TEVASA
Final stages of negotiations
Ethanol will originate from Brazil and after processing in Haiti it will be exported to US for further blending with gasoline

Plant Layout
TEVASA

Thank You!
Maulik Radia, TEVASA, Managing Director
maulikradia@yahoo.com
TEVASA

Renewable Energy For a Better World
Transforming Haïti’s energy challenges into wealth and job creating opportunities
ENERSA

COMPANY PROFILE
Haïti’sonly designer and MANUFACTURER of solar panels and solar appliances
Small, young,… but the FASTEST GROWING solar company in the country (700% growth)
Industry leader in number of installations (in just over 2 years of operations)
From 800 sq ft, moving to new 10,000 sq ft facility
Widest covered geographic area
58 towns & remote villages… and counting
contracts in all 10 departments of the country
In very little time, we became the best local partner for nationwide solar projects
Socially responsible company
Trained from scratch & employed so far 18 solar technicians (almost all of them youth from Cité Soleil)
Investing in our Human Resources
Investing in environmental projects
Supporting youth initiatives
ENERSA

SOLAR as a strategic solution
Haïti in excellent radiation zone
750,000 to 1M households without access
Estimated total PV installed : only 700 Kw
Making PV affordable & accessible
Reducing the country’s dependence on imported fossil fuel
Creating jobs
So, we’re in the business of Socioeconomic Development
has an OVERALL installed capacity ofabout360 MW
while Haïti
Germany
has 10 times that, just in solar PV
- 1,500 MW PV installed in 2008 alone
Spain
Installed 1,800 Mw PV in 2008
ENERSA

MANUFACTURING as a wealth creating option
SOLAR STREET LIGHT
MARKET VALUE ADDED CHAIN
PV MARKET VALUE ADDED CHAIN
Si- Feedstock
Wafer
Si- Feedstock
Cell
Wafer
Module
Cell
Manufacturing Division
Solar appliance
Module
BOS
BOS
Installation Division
Installation
Installation
43%
59%
ENERSA

OUR PRODUCTS
NATIONAL
TEAM WORK
Components from other Haïtian industrial companies as much as possible
Solar Lamp
Light
Radio
Mobile phone
Mobile phone charger
STANDARD model
Mobile phone charger
BELT model
Solar Home System
3 Lights
Radio
Mobile phone
Mobile phone chargerBELT model plus
Solar Module PS-X
30W
60W
120W
CHAJMAN
Small Business
Mobile phone
Charging station
ENERSA

OTHER PRODUCTS & SERVICES
MULTI Kw INSTALLATIONS
Village Mini Central Solar Plant
STRONG R&D DEPARTMENT
Hospital
4 main focus:
Security
Cost
User friendly
Install. friendly
Custom design for
specific projects
Coffee Export Coop
Solar Irrigation Pump
ENERSA

OUR MAIN SUCCESS
SOLAR STREET LIGHT
Theft proof
hurricane proof
12h of light per night
Fully automatic (ON/OFF)
3 days autonomy
25% cheaper than imported
Designed in Haïti
Solar panel made in Haïti
LED light bulb made in Haïti
Pole made in Haïti
ENERSA

FINANCING HAÏTI’S SOLAR REVOLUTON
Consumer appliances
OFF-Grid :
Residential (SHS)
Commercial / Institutional
Stand-Alone Utilities
ECONOMICALLY VIABLE
MARKET SEGMENTS
INDUSTRY STRUCTURE FLOW CHART
Government
Local component supplier
Mezzanine Financing
Inventory Loan
Institutions
Installation Division
Foreign component supplier
Manufacturing Division
Micro Business
Household
Consumer
Other local installers
Market segments
financing mechanism
(credit / loan)
$
$$$
ENERSA

5%
15%-20%
20% - 25%
50 %
( NOTE ABLE TO AFFORD )
Opening solar market through
proper financing mechanism
SOLAR HOME SYSTEM MARKET POTENTIAL
ECONOMICALLY VIABLE
50% penetration potential with proper financing
375,000 HH in Haïti
$ 175 M market
200 M HH worldwide
Cash able
1 – 3 year credit
3 - 5 year credit
Need subsidy
Solar needs subsidies ?
No…
Not for all market segments
ENERSA

PROFITABLE solar company, but…
Renewable Energy For a Better World
Our Greatest Achievement?
Changing people’s lives
NO VILLAGE TOO REMOTE…
COUNTING ON YOUR SUPPORT
THANK YOU
ENERSA

Haiti: "Open For Business"

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