financing energy projects in serbia
DESCRIPTION
Presentation on financing energy projects in SerbiaTRANSCRIPT
karanovic/nikolic
Financing of Renewable
Energy Projects in Serbia
September 2013 / Petar Mitrović
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The Firm
Financing of Renewable Energy Projects in Serbia
Key facts— Staff over 100 and 80 lawyers— Integrated service over 12 practice
areas— 6 Offices, 5 Countries
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Serbia: Financing of RES Projects
Financing of Renewable Energy Projects in Serbia
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Serbia – Potential
64%
16%
12%
4% 4%
BiomassHydropotentialSolar energyWind energy Geothermal energy
Potential: 6 Mtoe annuallyUsed: 33%
Financing of Renewable Energy Projects in Serbia
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Financing of RES Projects – Factors to consider
Government Support
Market Economics
Project Economics
Security
Reliability of a Sponsor
Government Support
Financing of Renewable Energy Projects in Serbia
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Financing of RES Projects – Government support
▬ PPA for 12 years with Public Supplier / fixed prices
▬ Guaranteed take-off after 12 years / market prices▬ Priority in access to the grid▬ Exemption from balancing costs▬ Guarantees of origin
Financing of Renewable Energy Projects in Serbia
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Financing of RES Projects – Obstacles
▬ Overall cap for wind (500 MW) and sun (10MW) power plants
▬ Lack of bankable PPA model
▬ Underdeveloped grid
Financing of Renewable Energy Projects in Serbia
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Financing of RES Projects – PPA
▬ Key asset and collateral — With state owned entity – Public Supplier— Preliminary (for wind/solar projects) and final (far all)— Preliminary – construction permit / Final – finalization of
the project
New PPA models adopted in July 2013
Financing of Renewable Energy Projects in Serbia
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Financing of RES Projects – PPA Main Concerns of Financiers
▬ Deadlines (construction and commencement of operations)
▬ Transition between preliminary and final PPA
▬ Grid connection and curtailment
▬ Rights and obligations in the commissioning period
Financing of Renewable Energy Projects in Serbia
▬ Assignment and step-in rights 444444444444444444
▬ No cure periods before termination
▬ No adequate protection against change in law
▬ Dispute resolution mechanism
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Financing of RES Projects –Necessary steps
▬ Amendments to the Energy Law and separate law on renewables
▬ New PPA Model▬ Simplification of the permitting procedure /
Ministry of Energy “one-stop shop”
Financing of Renewable Energy Projects in Serbia
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Our Team
Miloš VučkovićSENIOR PARTNER
Stevan DimitrijevićPARTNER
Petar MitrovićASSOCIATE
Resavska 2311000 BelgradeSerbiaT + 381 11 3094 200F + 381 11 3094 223
Gundulićeva 478000 Banja LukaRepublic of SrpskaBosnia and HerzegovinaT + 387 51 250 001F + 387 51 250 005
Resavska 2311000 BelgradeSerbiaT + 381 11 3094 266F + 381 11 3094 223
Financing of Renewable Energy Projects in Serbia
karanovic/nikolic
Thank you