Catherine Bremner, ANZ - Financing Off Grid Energy Systems - Opportunities and challenges
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Transcript of Catherine Bremner, ANZ - Financing Off Grid Energy Systems - Opportunities and challenges
ENVIRONMENTAL FINANCE SOLUTIONS
Market assessment, ANZ existing capability and current opportunities
Catherine Bremner – Head of EnvironmentMarch 2013
> This document is issued by Australia and New Zealand Banking Group Ltd (‘ANZ’). The information and opinions contained in this document (on which ANZ may have acted or may act for its own purposes) are published for the assistance of recipients but are not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. While such information and opinions have been compiled or arrived at by ANZ in good faith and from sources believed to be reliable, no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness, any opinions contained in this document may be changed by ANZ without notice. ANZ, its officers, employees, representatives and agents accept no liability whatsoever for any loss or damage, whether direct, indirect, consequential or otherwise howsoever arising (whether in negligence or otherwise) out of or in connection with or from any use of the contents of and/or any omissions from this document
> Information contained in this presentation is strictly confidential. It is the property of ANZ. As such, no part of it may be circulated, copied, quoted or otherwise referred to another party without prior written consent of ANZ
> The terms noted in this presentation is subject to receipt by ANZ of formal credit approval and appropriate legal, accounting, tax and technical advice. This is not an offer to finance
> The points made in this presentation are subject to further discussion with you and we would be pleased to address any comments and queries that you may have in relation to the proposed funding options so as to ensure that your particular requirements are satisfied
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Disclaimer & Confidentiality
>Why Environmental Solutions are important to ANZ
>The global and local opportunity for Environmental Finance Solutions and Clean Energy is growing rapidly, globally, comprised of Renewables, Distributed Generation and Energy Efficiency, with largest growth market forecast in Asia:
- Renewables and Distributed Generation: ~$250bn USD in 2012, with $1.1*Tr USD in 2020;
- Energy Efficiency: ~Global energy market of $1.4* Tr USD in 2020;
>ANZ has existing Clean Energy capability: collaboration across industry, finance providers and equipment solution providers will increase uptake
>Case Studies
Agenda
* IEA estimates of market size, although still small part of global energy market** ANZ’s total exposure to renewables across PSF, RL and SL business units is ~$1.38bn at March 2013
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ANZ’s own environmental targets and performance to-date
Environmental footprint reduction targetsAustralia and New Zealand, representing ~80% of ANZ’s footprint have set energy, travel, GHG, waste and water reduction targets and monitored performance over the last five years.
Retrofit results:Combining flexible working practices with property refurbishments ANZ has achieved energy, waste and water reductions ranging from 5% - 25% in offices, retail branches and data centres Staff feedback is that they prefer working in our retrofitted, flexible workspaces
In 2013, for the sixth time in 7 years, ANZ was ranked by Dow Jones Sustainability Index as the most sustainable bank globally.
Key to this success has been ANZ’s commitment to measuring and reducing its environmental footprint.
Renewables – remote sides, retail branches, data centres
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The Global Market Outlook for Renewable Electricity Generation
› Bloomberg New Energy Finance forecast:
▫ Renewables will account for approximately 50% of installed capacity by 2030 and generate 36% of total global electricity.
▫ “New” renewables (ie excluding hydropower) will account for between 58-66% of new capacity additions up to 2030.
▫ $8.2 trillion of this capital (~73%) is expected to be spent on renewable energy (including hydro)
▫ Solar PV will attract the largest share of the forecast $11 trillion in capital to 2030 (~25%). Rooftop solar will attract just under two-thirds of this investment.
Cumulative Power Generation Capacity Asset Finance 2013-2030
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CSIRO Future Grid modelling: off-grid diesel is replaced by alternative energy sources, as costs decline of Solar PV
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Gas turbines
Gas Cogen Industrial
Gas Co/Trigen Residential
Gas Co/Trigen Commercial
Diesel urban
Diesel off‐grid
Biogas
Solar PV Residential
Solar PV Rural
Solar PV Commercial
Wind small
Biomass steam/Cogen
Landfill gas
TWh
CSIRO Energy Sector Model on the web: efuture.csiro.au
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AUSTRALIAN SOLAR PV – MARKET FORECASTS
- Opportunity to support customers from the growing Solar PV market in Australia
- Solar PV: minimal maintenance, off-grid/on-grid applications
- Falling PV prices and raising electricity price levels payback period declining down to 2-4 years
- Installed capacity has reached ~3 GW- Forecast growth over the next 5 years to
>7 GW by 2017. - Corresponding investment to 2017 is
estimated at $7.3bn- Emerging market dynamics makes
funding options for solar devices more attractive
- Growth to-date driven by residential market
- Expected growth areas, are commercial and industrial and off-grid applications
- Cost of diesel increasing – and pressures on capex, operating expenditure in Natural Resources sector – increased interest in alternative sources of energy covering: wind, solar PV, solar thermal, biomass
- Early solutions include diesel back-up
PV INSTALLED CAPACITY FORECASTS
SOLAR PANEL PAYBACK PERIOD FORECASTS
Source: SunWiz-SBS Solar Forecast 2012 - 2017
FINANCING OF SOLAR DEVICES
Payback period 2.5-4.5 years
$5-7bn investment required
ANZ capability: Solar energy opportunity
ANZ’s role in supporting off-grid customers:
ANZ supports customers in with installation and maintenance of renewable energy and distributed generation options.
ANZ’s product capabilities in Structured Asset Finance, Trade and Supply Chain, ANZ Foreign exchange & Environmental markets and our super regional strategy provide significant competitive benefits to our customers.
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› Advisory: Advisor into establishment of structures for Solar PV and Distributed Generation assets (equity and debt)
› Project Finance: for large-scale installations of distributed generation
› Structured leases and receivables finance: equipment backed lease (operating or finance), e.g. repayments linked to energy savings, security on asset being financed or against payment stream for services being offered
› Export Credit: longer term debt, provided by Export Credit Agencies
› Environmental Upgrade Finance: environmental council charge on land for property upgrades in Melbourne and NSW
› Co-finance with Government programs: e.g. ARENA
RECENT ANZ RENEWABLES TRANSACTIONS (PSF & ADVISORY)
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AUD179,000,000
Construction and operation of the 106.8MW Taralga Wind Farm in NSW
Taralga Wind FarmMandated Lead Arranger,
ECA Arranger, Account bank,Facility Agent and Security Trustee
August 2013
AUD251,400,000
Construction and Term Facilities for the 113.2MW Boco Rock Wind Farm
Boco Rock Wind FarmMandated Lead Arranger, Account Bank,
Facility Agent and Security Trustee
June 2013
Bald Hill Wind Farm
Mandated Lead Arranger, Sole Provider of Bank Guarantee Facility, Facility
Agent and Security Trustee
October 2013
AUD 198,200,000
Construction and operation of the 106.6MV Bald Hill Wind Farm
Mandated Lead Arranger, Account Bank, Facility Agent and Security Trustee, ECA
Agent, Escrow Agent
June 2013
AUD 528,000,000
Refinancing of the Macarthur Wind FarmTerm Facilities
AUD 394,000,000
Advisor to Hydro Tasmania on its 75% divestment of the MusselroeWind Farm
Hydro TasmaniaFinancial Advisor
AUD 282,000,000
Advisor to EnergyAustralia on its parallel process to divest its 75% ownership in Waterloo Wind Farm a stapled debt refinancing
EnergyAustraliaFinancial Advisor
AUD 660,000,000
Advisor to Malakoff on its 50% acquisition of the Macarthur Wind Farm
Malakoff CorporationFinancial Advisor
AUD $660,000,000AUD 361,000,000
Advisor to Continental Wind Partners & General Electric on their 100% equity divestment and parallel debt financing of the Boco Rock Wind Farm
CWP & GEFinancial Advisor
› Questions?
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