Solar Energy Finance, Axel Ceglie-Swoboda, Consukorra 20130611
financing of agriculture pumpsEnergy Solutions1) Introduction2) financing of agriculture pumps3) General4) “Cloud financing”5) summarySekem energy Solar thermal workshop Cairo 130611Financing of solar projects
eg.eurem.netSolar Thermal Systems: Heating (I)Solar Energy in History2000 B.C. Drying of Food in Ancient EgyptDepicted for the First Time
financing optionssekem energy workshopGeneral options for financing:1) EPC2) BOT3) Loans4) Mezzanine5) Incentives, national / internat.6) Egypsol incentive7) Private shares .
importance of interest rateEquity 20 %Loan 80 %Interest rate 10 %ROI 10 yearsEquity 20 %Loan 80 %Interest rate 5%ROI 5 yearsEquity100 %ROI 2 y.clients need ROI in 3-5 years !High interest rate is obstacle for solar projects
pump BOT model with bank1) Agriculture pumps from SAER (Italy)1) 50 to 500 KW2) Electric grid connected or via diesel generator.3) 18 hours operation, mainly during night.4) Maintenance contract.5) Solar driven pumps in preparation.2) Financing “engineering”1) 15 % equity from the farmer or “in kind” (return the old pump)2) 85 % loan from Egypt agriculture bank3) 5 years repayment from the farmer to bank or even with crops.Remark: condition is that the supplier has bankable historyExperience: If the farmer cant pay 15 % equity, he cant pay the rates too !!
structure of the pump financingsupplierAgriculturebankFarmerRepaymentmaintenancecontr. Paybackwith crops
international financingsuitable for groop of projects or clients with same technologyClassicalinvestorGov.SecuritiesfortechnologyexportCommercebank e.g.AustriaNationalbankMezzaninecapitalProjectequity
BOT modelClient pays energy not the investment for certain timesupplierEnergysolution,Containeretc…NationalbankClient,Pays for energynot for theinvestmentenergy
“cloud” financingSuccess story from Europe:- Private people buy shares in terms of pieces of wind farms,solar plants (Vienna energy utility).- 1 share can be 1 collector or solar panel in PV !- U.S.A.: Founder of Pay pal and investor of Tesla (electric cars)1 bil. USD from stock market for 65.000 PV plants 2012.- Limited companies, stock companies, bonds.Transfer to Egypt:Hotels, industries could cooperate to get advantage ineconomies of scale.Very big problem: Mentality of sharing isn’t developed yet
other examplesBattery storage system Germany:Since May 2013, 30 % governmental incentive, KfW LoanFIT… feed in tarif,grid parity (ships on Nile pay up to 1,5 LE/KWh! Diesel 5,3 LE/l)U.S.A.: TER system (2010: 0,35 USD/KWh over 500 KWh/m,and reduction of tax).Carbon credits from certain size of projects.
Summary1) Good timing for Egypt (energy crisis)2) Technology is ready and getting cheaper3) Financial tools are available4) There are bottlenecks in projects5) Market will develop fast. Havingdynamic partners is success factor6) New thinking is needed7) Maintenance and services are importantAnd don’t forget about quality of technology !
Stone age didn’t end because ofa lack of stonesFossil energy age will not endbecause of a lack of resourcesAlways better technologies arethe driving force for change andnew opportunities