Energy Saving Financing JCM...
Transcript of Energy Saving Financing JCM...
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Energy Saving Financing
JCM Implementation
Sept 11, 2018
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Principle of Energy Saving Financing
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Clear objective of investment
Self financing source of repayment
Enhance borrower’s competitiveness
Strengthen borrower’s long term cash flow
Energy Saving Financing – Key Points
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Borrower/ Investor
Energy Performance Contract
(Energy Saving Guaranty)
Self-Financing Project
ESCO or Suppliers KBank
Energy Efficiency Financing Model (1/2)
Funding
Repayment from Saving
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Energy Efficiency Financing Model (2/2)
Base consumption
100%
Guaranteed Portion
New
En
ergy
Co
st
New
En
ergy
Co
st
New
En
ergy
Co
st
ESCO
guarant
ee = 30% 5%
5%
ESCO Compensate Shortfall of
5.0%
Saving Shortfall Saving Surplus
Actual Result
Surplus
( sharing
as agreed )
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100%
70%
25%
70%
30%
Loan Repayment
Additional Cash Flow
Base Energy Cost
New Energy Cost
Saving from Energy Cost Additional
Cash Flow
Year 1 – Year 5
5%
Cash Flow Profile (Pre and Post Project)
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EE Financing Project Evaluation
Evaluation Process
Project Specific
Borrower Specific
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Project Specific Evaluation
Esco
evaluation
- Track record in business and knowhow - Certification / Reference - Business reputation - Financial Strength
Energy
Performance
Contract
- Level of details/ Standard of contract - Fairness and clarity
Project payback analysis
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Borrower Specific Evaluation
Industry Condition
General Credit and financial condition
Cash Flow and Debt Service burden
Collateral Structure
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Opportunities and Challenges
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Opportunities of EE Financing
• Low cost funding • Technical Assistance • Investment subsidy
Lower implementation and equipment cost/
faster pay back
Growing awareness of energy efficiency and
renewable energy
Established ESCO’s infrastructure
Government Support/ Other international
Agencies
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Challenges of EE Financing
Deal acquisition Project Evaluation
Low energy price environment
End-user confidence and understanding
Business priority/disruption
Size of investment
Some EE measures has become commodity
Qualification of ESCO/Supplier
Nature of assets related to project
Understanding of Technical aspects
Deal size and cost of due diligence
Collateral structure issue
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Special Financing Package
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Energy Revolving Fund
Financing Condition General Condition
Up to 5 years term loan
Up to THB 50 million /project
Interest rate at 3.5% p.a. (fixed)
Up to 7 years Project pay back
Cover any type of building (Industrial/Commercial)
Cooperation with DeDe in the form of soft loan through 8 Banks
Equipment change/Productivity Improvement/Renewable Energy (self consumption)
50 Project Prescreening by DeDe
No restriction on ESCO/Supplier
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Energy Saving Project Examples
Factory Retrofit
Solar Rooftop
Lighting (LED)
Building Retrofit Production Improvement
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