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CTI PFAN
Experiences of an Innovative
Programme to Accelerate Low Carbon
Technology Investment
IEA Technology Platform
Forging International Finance Collaboration Workshop
Peter Storey, Stockholm, 21st June 2012
connecting clean energy businesses with financing
CTI PFAN – Objectives
Clean Energy Businesses &
Projects
Investment Sources (Financiers, Banks)
¥€$
Seeking financing Seeking projects / businesses
The Missing Middle: Lack of Access to Financing
Policy Dialogue (barriers and
solutions)
Training Financial Institutions
Coaching & mentoring
Government (policies)
“PUSH”
“PUSH”
“PUSH”
How a multi-pronged approach can scale up clean energy deployment
connecting clean energy businesses with financing
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
connecting clean energy businesses with financing
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)
Bankable BP
Investor PPT
Project Data Sheet
Coaching
Showcasing
at Investor
Forum Compressed
Time Cycle
Financial
Close
Introduction
to Investors
Long Term Development
Open Time Cycle Project
Proposal
Analysis &
Selection /
Induction to
Pipeline
connecting clean energy businesses with financing
Project Criteria
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
PFAN Projects
Commercially Viable
Growth Potential
Competent Management
Team
Development Benefits
(MDGs)
Reduce GHG
Emissions
Technically Viable
connecting clean energy businesses with financing
Pipeline Overview
160 Projects in the Development Pipeline
USD 4,9 billion of Investment
7 million tonnes pa CO2 e GHG reduction potential
> 2.041 MW of clean capacity
32 Projects Closed / USD 404 million raised
303 MW of Installed Clean Capacity
1,8 million tonnes CO2 e reduction pa
94,5 GWhrs pa Energy Savings (EE projects)
connecting clean energy businesses with financing
Pipeline Analysis at
20.06.2012
India 14%
China 12%
CIS / Central Asia 0%
SE Asia 29%
S Asia 2%
Africa 36%
LAC 7%
Biofuels 11%
Biomass 15%
Biogas 13%
W2E 4%
Hydro 15%
Wind 6%
Solar 16%
Geothermal 4%
EE 10%
Clean Transport
2% Other 5%
By Region
By Technology
connecting clean energy businesses with financing
Closed Projects by
Technology
Hydro 16%
Biomass 22%
Other 3%
W2E 10% Wind
3%
Biofuels 9%
Solar 6%
EE 19%
Biogas 9%
Clean Transport 3%
connecting clean energy businesses with financing
Closed Projects by
Region
Africa 22%
SE Asia 38%
South Asia (incl India)
9%
LAC 6%
China 25%
connecting clean energy businesses with financing
Experiences &
Learning Points
Investment 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
Requirement for late stage TA Funding to achieve Conditions Precedent
Developer Capacity Gap
Investor Awareness Gap
Importance of Regulation (correlation to pipeline activity & success)
Market Differentiation at regional and country levels
Difficulty of implementing global activities
connecting clean energy businesses with financing
Experiences &
Learning Points (2)
Possibility of sustainability in the more mature markets
Structural Constraints
Bottom - Up vs. Top - Down
Shortage of qualified & experienced personnel who combine
technology, commercial and financing skills
Technology Availability is not a barrier
Technology fear at the institutional / regulatory level
Investors are not looking for successful business models built
around technology (not technologies)
Innate conservatism of investors faced with innovative models
combined with (relatively) new technologies
Potential for Leap-Frog Models (eg Barefoot Power)
connecting clean energy businesses with financing
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
Reducing Transaction Costs - Accelerating the rate of investment.
High levels of Donor Leverage
> 1:100
Challenge is moving to scale while retaining impact and
sustainability levels, especially within the bottom-up approach.
connecting clean energy businesses with financing
Contacts
Michael Rantil, Chair of CTI ([email protected])
Elmer Holt, Vice Chair of CTI / PFAN Manager ([email protected])
Taiki Kuroda, Programme Secretariat ([email protected])
Peter Storey, Global Co-ordinator ([email protected])
www.cti-pfan.net
www.climatetech.net
Thank You
