Development Agenda for Climate Investments Lagos, 17 April 2018 - - PowerPoint PPT Presentation

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Development Agenda for Climate Investments Lagos, 17 April 2018 - - PowerPoint PPT Presentation

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Development Agenda for Climate Investments Lagos, 17 April 2018 16-04-2018 IFU IN BRIEF Independent government-owned fund, operating on commercial terms Promotes economic and social progress in developing countries 146 Provides risk capital

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16-04-2018

Development Agenda for Climate Investments Lagos, 17 April 2018

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28

IFU IN BRIEF

16-04-2018

Independent government-owned fund,

  • perating on commercial terms

1967

investment countries

invested in share capital and loans

Provides risk capital and advice for projects having a Danish interest

146

Total contracted investments

  • f more than

3.2 Bn USD

bn USD

ENIGERIA ENERGY FORUM

Leverage/mobilisation of capital: factor 8-9 Established in

Promotes economic and social progress in developing countries

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IFU’s INVESTMENTS AND RETURNS

40 – 50 annual investments New and additional financing

12.0 %

Investments in more than 100 countries

Active portfolio of 221 projects Average commitment of 5 - 7 years

1200

The average annual gross return

  • n share capital (2012 - 2016)

16-04-2018

Contracted investments in 2016

USD 185m

NIGERIA ENERGY FORUM

Capital under management

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USD 1.0bn

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IFU IS FUND MANAGER FOR OTHER FUNDS

E.G. IN COLLABORATION WITH INSTITUTIONAL INVESTORS

16-04-2018 NIGERIA ENERGY FORUM SIDE 4

IIP

Committed capital DKK 500m Starting year 2012 Invested capital DKK 223m Number of projects 4

Investors: PKA, PBU

DCIF

Committed capital DKK 1.3bn Starting year 2014 Invested capital DKK 673m Number of projects 14

Investors: PensionDanmark, PKA, PBU, Dansk Vækstkapital, Aage V. Jensen Charity Foundation, IFU and the Danish State

DAF

Committed capital DKK 800m Starting year 2016 Invested capital DKK 193m Number of projects 3

Investors: PensionDanmark, PKA, PFA, IFU and the Danish State

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Partnership

What is KIF

Public Private Operates on commercial terms for climate investments and climate-related projects Investment with a

Provides risk capital Danish interest

16/04/2018 NIGERIA ENERGY FORUM PAGE 5

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What is a climate investment?

  • Renewable energy projects, e.g. wind, solar or hydro
  • Suppliers to renewable energy projects
  • Energy efficient projects, reducing GHG emissions by

at least 20 per cent

  • Alternative energy projects, e.g. using waste as input
  • Transport projects, reducing GHG emissions
  • Production of energy saving material and equipment
  • Projects with the purpose of adjusting to climate

change

16/04/2018 NIGERIA ENERGY FORUM PAGE 6

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Nigeria’s climate investment potential

  • Grid-tied utility scale projects
  • Captive power projects
  • Energy efficiency projects – ESCO & other models
  • Mini- and micro- grids – powered by solar, wind, biomass, and

small hydro

  • Gas projects
  • Diesel & LPFO displacement projects
  • Rooftop solar and wind
  • Residential renewable energy businesses
  • Manufacturing of components for wind & solar
  • Smart grid initiatives that enable renewable energy
  • Any project with net positive CO2 impact

16/04/2018 NIGERIA ENERGY FORUM PAGE 7

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AGENDA

  • Cost-reflective retail tariffs
  • Solving downstream issues
  • Transparent & predictable procurement
  • Innovation
  • Developers
  • Removing subsidies
  • Recognising the importance of distributed generation
  • Showcases and pilots
  • Banking learnings & diffusing knowledge
  • Government intervention projects

16/04/2018 NIGERIA ENERGY FORUM PAGE 8

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KEY FACTS

Project type Country Status Fund participation Expected total investment

CASE: Lake turkana, kenya

16/04/2018 NIGERIA ENERGY FORUM

Wind farm Kenya Under construction USD15m USD 0.8bn

  • With 310, MW Lake Turkana is the largest wind farm in

Sub-Saharan Africa.

  • Lake Turkana will provide 17% of Kenya’s installed

electricity capacity.

  • 365 Vestas turbines are to be installed.
  • 15-year service contract with Vestas.
  • 20 years EUR based PPA with Kenya Power.
  • Construction of site and a 428 km transmission line has

started.

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KEY FACTS

Project type Country Status Fund participation Expected total investment

CASE: MWSC SOLAR, MALDIVES

16/04/2018 EVENT VIA ‘INSERT’ / 'HEADER & FOOTER'. MAX ONE LINE

Solar farm Maldives Under construction USD 1.5m USD 2.5m

  • Up to 2 MW rooftop PV solar plant.
  • Male Water and Sewerage Company (MWSC) is a

desalination plant producing and delivering all drinking water to the capital of Male and to 80% of remaining country population.

  • The solar rooftop plant supplements and partly replaces

the diesel-based energy generation by solar energy.

  • NPP and MWSC entered a 25-years USD based PPA.
  • First commercial solar plant on the Maldives.
  • 1st stage construction completed in January 2016.

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KEY FACTS

Project type Country Status Fund participation Expected total investment

CASE: dong energy, China

16/04/2018 NIGERIA ENERGY FORUM PAGE 11

Biofuel China Closed USD 2m USD 3.3m

  • The project provided energy efficient refinery technology for the

production of 2G bioethanol.

  • DONG Energy developed and established joint venture projects

with large Chinese players that would promote the bio-based Inbicon technology in China, engage in the development of bioethanol plants and render services to them.

  • The Danish Climate Investment Fund decided on a case by case

basis to invest in specific plants in joint ventures with Chinese partners that have acquired an Inbicon license.

  • DCIF’s shares in New Bio Solutions China A/S has been sold to

Dong Energy.

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KEY FACTS

Project type Country Status Fund participation Expected total investment

CASE: Nordic power partners, DAC

16/04/2018 NIGERIA ENERGY FORUM PAGE 12

Financing renewable energy DAC In operation USD 4m USD 7.8m

CASE

European Energy A/S

  • Established in 2004
  • 58 employees of 8 nationalities
  • Privately owned
  • 365 MW of wind and solar parks

(92% wind and 8% solar)

  • Equity growth from EUR 4m to EUR

55m Nordic Power Partners

  • 51/49 JV between European Energy and DCIF
  • Developer of wind and solar projects as there is a strong need for qualified

developers in emerging markets and very good commercial opportunities

  • European Energy and IFU provide staff resources in addition to NPP’s own

staff to find and develop projects in addition to the capital invested

  • NPP invests in green field project development and brown field projects

within ▪ Wind ▪ PV solar

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KEY FACTS

Project type Country Status Fund participation Expected total investment

CASE: Esco asia, malaysia

16/04/2018 THE FIRST YEAR OF THE DANISH CLIMATE INVESTMENT FUND PAGE 13

Energy saving solutions Malaysia In operation USD 1.8m USD 3.2m

Seri Negeri, the main office of the Melaka State Government

  • Pilot project in Malaysia, with expansion potential in South-East Asia, providing energy efficiency solutions for buildings.
  • The project is a JV with Danish Energy Management & Esbensen A/S (DEM).
  • DEM and DCIF were contracted by Melaka State Government to provide EPC services for the first 3 pilot phase buildings

in June 2015.

  • The plan is to improve energy efficiency in all State owned buildings (a total of 95 buildings).
  • The project company provides the full services for implementing energy efficiency measures in buildings incl.
  • Consultancy (design, procurement, monitoring)
  • Finance (off balance sheet financing)
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KEY FACTS

Project type Country Status Fund participation Expected total investment

CASE: Pampa Elvira Solar SPA, Chile

16/04/2018 NIGERIA ENERGY FORUM

Chile In operation USD 4.2m USD 25 m

  • 32 MW solar thermal energy.
  • Plant of 2,920 flat plate solar collectors each consisting
  • f 10 panels. The collectors are equivalent to 44,000

m2 of panels.

  • Danish solar company Sunmark A/S and Energia

Llaima formed a consortium to establish a thermal-solar plant for the supply of thermal energy (hot water) to the copper mine Gabriela Mistral.

  • The project is promoted as being at the forefront of

enabling the Chilean mining sector to use clean and renewable energy sources.

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Thermal solar

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KEY FACTS

Project type Country Status Fund participation Expected total investment

CASE: SolarSouth Investment P/S

16/04/2018 NIGERIA ENERGY FORUM

Thermal Solar Chile, Mexico, and Peru Signed USD15.4 DKK 0.2bn

  • SolarSouth will invest in thermal solar plants with private PPA’s in

Latin America together with the local partner Energia Llaima, selling heat to especially mines in Chile, Mexico, and Peru.

  • Energia Llaima is an owner and developer of energy assets, owned

by three industrial families in Chile.

  • The Danish partner is VKR Holding, the owner of Arcon-Sunmark

A/S.

  • Arcon-Sunmark is the supplier of the solar thermal plants.
  • The present pipeline supports the assumption that the committed

equity will enable a portfolio of 8-9 projects within the next 48 months.

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THANK YOU!! QUESTIONS?

16/04/2018 NIGERIA ENERGY FORUM PAGE 16