Scaling up renewable financing9 November 2017

From 4 degrees to 2 degrees

9 November 2017 2

0

5

10

15

20

25

30

35

40

45

2014 2020 2030 2040 2050 2060

Nuclear 6%

Efficiency 40%

Fuel switching 5%

CCS 14% Renewables 35%

International Energy Agency (2017), Energy Technology Perspectives 2017, OECD/IEA, Paris

Electricity generation in the 2DS

9 November 2017 3

0

100

200

300

400

500

600

0

10 000

20 000

30 000

40 000

50 000

60 000

2014 2020 2030 2040 2050 2060

gCO

2/kW

h

TWh

Natural gas Natural gas with CCS Oil CoalCoal with CCS Nuclear Hydro Biofuels and wasteSolar PV STE Wind OtherCO₂ intensity

Decarbonising the electricity sector

9 November 2017 4

0%

20%

40%

60%

80%

100%

RTS 2DS B2DS2014 2060

Elec

trici

ty m

ix

Fossil w/o CCS Fossil with CCS Nuclear Bioenergy with CCS Renewables

International Energy Agency (2017), Energy Technology Perspectives 2017, OECD/IEA, Paris

Renewables penetration goes

from 43% to >70%

The leading financier of renewable energy in its region

150 MW wind

214 MW solar82 MW wind

50 MW wind100 MW hydro100 MW solar

297 MW hydro20 MW wind

278 MW wind150 MW geothermal

78 MW hydro

557 MW wind50 MW solar

1,083 MW wind130 MW biomass 79 MW wind

23 MW solar22 MW biomass

216 MW wind26 MW hydro

• 127 projects in 23 countries• 6,500 MW of renewable capacity• EUR 4.1 billion of EBRD investment• EUR 12 billion total project value

MW total is greater than totals shown on map due to regional projects not included and other minor adjustments.

184 MW hydro332 MW wind

142 MW hydro

158 MW wind

120 MW wind120 MW Hydro rehab

12 MW solar

48 MW wind

381 MW wind20 MW biomass

750 MW solar

5

Renewables – Operational Approach

Investment

Technical cooperation

Policy dialogue

• Promoting sustainable energy• Honest broker role• Sharing experience and best practice

• Development equity• Mezzanine• Project finance• Corporate loan• Equity

• Regulatory frameworks• PPA drafting• Grid absorption studies

6

Catalysing new markets

First private renewable projects, coupled with policy dialogue and

consultancy advice on the underlying regulations

First solar projects, following detailed engagement with the government on PPA

drafting.

First private renewable projects after years of support to put in place the renewable

regulatory framework.

Support for development of the

NREAP

First private renewable projects and design and implementation of the regulatory framework

Selected examples show how in key countries EBRD combines policy

dialogue and consultancy advice to create the enabling framework, before

supporting first of a kind projects.

First utility scale renewables in the

region, building on years of discussion and

consultancy advice to prepare the regulatory

and contractual framework

First private-to-private windfarm, alongside extensive

consultancy advice to open up MV and LV networks.

First private renewable projects, building on three years of

support to the government on PPA drafting, grid code and environmental assessment.

7

Egypt Renewables

8

• Strategic Environmental and Social Assessment

• Grid Code drafting

• Three years of engagement.

• 117+ comments on contractual framework

• USD 476 million of co-financing

• USD 286 million of sponsor equity

• USD 368 million of EBRD finance

US$ Mobilise

Technical support

Policy dialogue

9 November 2017

Benban solar park

• 1.8 GW solar park – the largest in Africa.

• 900,000 TCO2e saved annually

9 November 2017 9

Kazakh renewables

9 November 2017 10

• Capacity building• Domestic offset

project• Strategic

Environmental Review

• Eight years of engagement

• Development of FiTs scheme

• PPA drafting

• USD 45 million of co-financing

• USD 120 million of sponsor equity

• USD 250 million of EBRD finance

US$ Mobilise

Technical support

Policy dialogue

EBRD’s RES projects in Kazakhstan

YereymentauWind Farm (50MW)• first large-scale wind farm

in Kazakhstan• EBRD loan EUR 59 MM • CTF loan EUR 18 MM

BurnoyeSolar Park (50MW)• first large-scale PV power

plant in Kazakhstan• EBRD loan USD 76 MM • CTF loan USD 15 MM

ShardaraHydro Power Plant • EBRD loan EUR 60 MM

11

Burnoye extensionSolar Park (50MW)• EBRD loan USD 44 MM • CTF loan USD 10 MM

• USD 150 million funding

• USD 4 million technical assistance

Capital

• Address affordability• Support first mover costs• Fill capital gaps

Support• Create an enabling environment• Unlock bottlenecks

Approval

• Stamp of quality• International endorsement• Investor confidence

Climate finance – a key catalyst

9 November 2017 12

• USD 106 million funding• USD 4 million technical

assistance

9 November 2017 13

And so each ventureIs a new beginning, a raid on the

inarticulate,With shabby equipment always deteriorating

…For us, there is only the trying. The rest is

not our business.

Contacts

21

Harry Boyd-CarpenterDirector, Head of Power and Energy UtilitiesTel: + 44 020 7338 6559Email: boydcarh@ebrd.com

EBRD, One Exchange SquareLondon, EC2A 2JN United Kingdomwww.ebrd.com

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9 November 2017