Lessons learned
Reviewing investment proposals
under 5 MWe in South East Asia
Austin Arensberg I Business Development Manager
www.ped‐asia.com I austin@ped‐asia.com
T. +66 (0) 2 251 4602

Presentation Overview
Audience
RE Investors and companies looking for investment
Purpose
Share lessons learned from reviewing multiple project proposals and
companies across Asia
Take away message
Renewable energy in SE Asia is an immature, dynamic , market
everyone learning – patience, clear communication, flexibility to
structures will allow for an efficient deal process.

Market Context – The numbers
$140 billion or 56% of global energy investments in renewable energy in 2008.
From 2005‐2007 growth in RE was 50% annually. 2008 ‐ Investors spent just 5
percent more on clean energy.
DOE Report expects Luzon to attract $16.14 billion, which may be used to
produce 8,072.3 MW of electricity from renewable sources. Technical or
practical reality?
Cleantech venture investments declined for two consecutive quarters since
peaking at $2.6 billion in the third quarter 2008 representing the lowest level of
venture capital investment in clean technology companies in two years. It won’t
last for long.
Q1 2009 – Miserable – Funding plunged 70% amid oil and carbon prices. Good
valuations – poor proposals.
Sources: Bloomberg, New Energy Finance, UNDP, Cleantech Group

When to start investment review?
Wait for contracts in hand
before initiating review.
Align technical interests
from host before
negotiating financial stake.
Always have materials
ready for distribution.

Legal Framework Priority – Green “New Deals”
Grid sales
Tariff Adders
Tax Promotions
Thailand still the best

Deal Communication
Documentation counts.
Project bundles should include:
Executive summaries, clear excel sheets
with assumptions, Full business plans
with legal reviews, market analysis,
feedstock/host facilities financial
statement.
Explain strategic interests
Early site visits ‐ speed up reviews

Due Diligence – Share Clear, Open Deadlines

Externalities need solutions
Oil Volatility requires Price floors for HFO replacement
Share profits with host
Price floor allows for
continued operation

Clear Technical Sales Contracts
Metering / weighing is the
most important aspect of
biogas and biomass projects.
Crucial to explain in clear
detail how this process works.
High potential for fraud.

Less sustainable project? Look for local debt.
• Palm projects are hard sells in Europe.
• Local debt means local officers, easier site visits, hopefully faster
responses and easier due diligence. Key is contacts.
• Less favorable terms but at least not years of development time.

Online Marketing Works and it’s Free

Local buy‐in most important
Local Know how

SE Asia hub for bioenergy technology

Austin Arensberg
Questions? www.ped‐asia.com
austin@ped‐asia.com
T. +66 2 251 4602
Contact Us All Seasons Place
Bangkok, Thailand