Cathleen Seeger Policy Advicer GIZ Project Development Programme Renewable Investment Grab the off-grid opportunity
Objectives Objective Approach Target groups Technologies Added value Support of local-german business partnerships and the development of reference projects in developing and emerging countries Strategic market development: regional, long-term and comprehensive, in order to systematically connect all instruments of the German Energy Solution Initiative; based on the business interests of German companies and local industry dynamics Project developers, manufactures, distributors, service providers, operators, investors in target markets and in Germany All renewables, in particular photovoltaic (with storage), hydro, wind, biomass GIZ-expertise and on-site networks to policy makers, the private sector and associations
Background Challenges in emerging and developing countries Few bankable projects lacking framework conditions Lack of quality awareness insufficient market information Only few reference projects Lack of competences of local partners
Modules and services MODULE 1 Information dissemination and contact establishment Market information (subsector-analyses und fact sheets) Information workshops and RE-business trade fairs or conferences dialogue in Germany Professional support for AHK-business trips in the region Business and delegation trips for purchasers and multipliers to Germany MODULE 2 Reference projects and capacity development Identification of project opportunities and tenders Pre-feasibility studies Support for the development of business models Support for the identification of financing sources Implementation of stakeholder-workshops On-site capacity development to support German companies Marketing support MODULE 3 Framework conditions and business environment management Political advice for favorable framework conditions Project-related measures (association work, dialogue forum)
Target markets Sub-Saharan Africa Botswana Ghana Kenya Madagascar Mali Mozambique Zambia Tanzania Southeast Asia Philippines Thailand Vietnam Myanmar
Off-grid opportunities Stay away from the grid! Off-taker utilities are not bankable (WB) Grid stability questionable Growing Market Off-Grid! Off-grid markets are the fastest growing market segments in Africa (BNEF) Industrial & Commercial Clients may have better rating than sovereign debt! (Euler Hermes)
Off-grid opportunities Off-grid opportunities - large consumers are: interested in lower their electricity bill, because of high tariffs interested in reliable electricity Challenges: Know-how of RE is limited Financing is limited Large consumers / IPP models Specific identification of large consumers in PDP-target countries Determination of the potential of renewable energies with the help of a standardized approach Contact establishment to project developer in case of a promising potential
Example of Ghanaian client Client A: Energy consumption: 120.000 kwh/per month Monthly electricity bill: 22.000 EUR Roof top space: 2700 sq.m Estimation: 350 kwp PV-installation Electricity production: 45.000 kwh/month (1/3 of the monthly electricity demand can be produced by solar) Installation costs: approx. 500.000 EUR Yearly savings: appr. 85.000 EUR Pay-back time: 6 years Author Title TT.MM.JJJJ Page8
Thank you for your attention! Martin Baltes Cathleen Seeger pep@giz.de www.giz.de/projektentwicklungprogramm