Overview & Experiences in Asia of an Innovative Programme to accelerate Technology Transfer to mitigate and adapt to Climate Change

Peter Storey Asia Clean Energy Forum, Manila, 6th June 2012

Contents
CTI PFAN What it is & how it works Overview of Asian Activities & Development Pipeline Expereinces of PFAN in Asia to date Future Scale-Up Summary

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CTI PFAN Objectives

How a multi-pronged approach can scale up clean energy deployment

Coaching & mentoring

The Missing Middle: Lack of Access to Financing

Seeking financing Seeking projects / businesses Investment Sources (Financiers, Banks) $

PUSH

Clean Energy Businesses & Projects

PUSH

PUSH Government (policies) Policy Dialogue (barriers and solutions) Training Financial Institutions

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Introduction to CTI PFAN

CTI PFAN is a Multi-Lateral Initiative:
CTI Countries / ICETT / REEEP / USAID

Network of Private Sector Professionals

Investors / Consultants Exclusive focus on developing countries

CTI PFAN goals:

to accelerate technology transfer and diffusion under the UNFCCC to promote low-carbon, sustainable economic development to increase financing opportunities for promising clean energy projects

Connects CE projects with Investors / Financing Triple bottom line approach

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CTI PFANS FUNDING PARTNERS

CTI PFAN NETWORK MEMBERS

Management Consultant Regulatory Economics & Finance

FE CLEAN ENERGY GROUP INC.

PFAN Services
Free Coaching on Project Development & Financing Matchmaking Sourcing of Equity & Debt 2 Entry Points
Unsolicited Proposal Submission for Development Pipeline from any Source Regional & Country based RFPs / (CE Financing Fora)
Long Term Development Open Time Cycle

Project Proposal

Coaching

Bankable BP Investor PPT Project Data Sheet

Analysis & Selection / Induction to Pipeline Compressed Time Cycle

Introduction to Investors Financial Close Showcasing at Investor Forum

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Project Criteria
Commercially Viable USD 1 50 million Total Investment Micro Projects (< USD 1 million) Wind / Solar / W2E Biogas / Hydro / EE / Biomass / Biofuels / Geothermal / Rural Electrification / Clean Transport / Mitigation / Adaptation Technology Neutral
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Technically Viable
PFAN Projects Reduce GHG Emissions Development Benefits (MDGs)

Growth Potential

Competent Management Team

Global Snapshot of CTI PFAN

CIS & Central Asia

Central America & Caribbean Latin America

West Africa
East Africa

Asia

Southern Africa

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Asia Pipeline Overview

Activities Launched in 2009
Until Sep 2011 managed by ECO Asia CDCP via funding from USAID

5 Dedicated Networks established

China, India, Indonesia, Philippines (Thailand) Regional coverage across Asia

80 Projects in the Development Pipeline

USD 3,2 billion of Investment 4,7 million tonnes pa CO2 e GHG reduction potential > 1.424 MW of clean capacity

22 Projects Closed / USD 320 million raised

136 MW of Installed Clean Capacity 642.000 tonnes CO2 e reduction pa 94,5 GWhrs pa Energy Savings (EE projects)
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Asia Pipeline May 2012

Vietnam 4% China 22% Indonesia 22% Thailand 1% Laos 3% Nepal 1%

By Region

Regional 2%

Philippines 17%

India 25%

Bangladesh 1%

Sri Lanka 2%

Clean Transport 2% EE 10% Geothermal 4%

Other 5%

Biofuels 11% Biomass 15%

By Technology

Solar 16% Wind 6% Hydro 15% W2E 4%

Biogas 13%

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Experience in Asia
Technology Transfer for Climate Change is not being constrained by lack of projects or lack of funding per se
Lots of good viable projects out there

Some Gaps
Early Stage Development Funding / Proof of Concept Developer Capacity Gap / Investor Awareness Gap

Importance of Regulation (correlation to pipeline activity & success) Requirement for Technical Assistance Funding to achieve Conditions Precedent Linkages to other activities (UNFCCC / ADB / NVI etc) Market Differentiation Possibility of sustainability in the more mature markets
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Future Scale-Up in Asia

New dedicated Funding from USAID for CTI PFAN Asia from later this year. Objective: Mobilize at least $1 billion in clean energy investment across Asia and establish a permanent "PFAN-Asia Platform" to continue scaling up investment over the long term Activities:
Catalyze clean energy financing across Asia Establish self-sustaining regional PFAN-Asia institutional platform Knowledge-sharing

Countries:
Cambodia, Laos, Indonesia, Malaysia, Philippines, Thailand & Vietnam Possible others: Bangladesh, India, Maldives, Nepal & Sri Lanka
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Summary
Need for a market facilitator, especially in the least developed and less sophisticated markets CTI PFAN is a succesful model. Good Success Rates
Getting More Projects to Financial Close & facilitating Interaction between Developers & Investors

High levels of Donor Leverage

> 1:100

CTI PFAN Asia is showing the way for scale-up of the PFAN model around the globe
Diversification & Expansion of Funding Base Move to an Institutional and Sustainable Platform Starting in Asia then transitioning to other regions
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Contacts
Elmer Holt, Vice Chair of CTI / PFAN Manager (elmer.holt@hq.doe.gov) Taiki Kuroda, Programme Secretariat (kuroda@icett.or.jp) Peter Storey, Global Co-ordinator (peter.storey@ppl-int.com) Frederic Crampe, Regional Co-ordinator Asia (frederic.crampe@reexasia.com) www.cti-pfan.net www.climatetech.net

Thank You
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