energy saving financing jcm...
TRANSCRIPT
1
Energy Saving Financing
JCM Implementation
Sept 11, 2018
2
Principle of Energy Saving Financing
3
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
4
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
5
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 )
6
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)
7
EE Financing Project Evaluation
Evaluation Process
Project Specific
Borrower Specific
8
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
9
Borrower Specific Evaluation
Industry Condition
General Credit and financial condition
Cash Flow and Debt Service burden
Collateral Structure
10
Opportunities and Challenges
11
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
12
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
13
Special Financing Package
14
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
15
Energy Saving Project Examples
Factory Retrofit
Solar Rooftop
Lighting (LED)
Building Retrofit Production Improvement
17