ebrd financing clean energy transition...2019/09/21 · ebrd’s renewable energy portfolio is...
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EBRD – Financing Clean Energy
Transition
21 September 2019
European Bank for Reconstruction and
Development
2
• International financial institution,
promoting open and sustainable
market economies by investing
mainly in private sector
development and
entrepreneurship
• Owned by 67 countries and two
intergovernmental institutions
• Largest single investor in the
region of operations (38 countries
from central Europe to central
Asia and the southern and eastern
Mediterranean)
EBRD at a glance
• Established in 1991
• 43 resident offices, 6 regional offices, HQ in London
• AAA-rated (S&P, Moody’s, Fitch)
• Capital base of EUR 30 billion
• EUR 130 billion invested in more than 5,300 projects since 1991
1. Data at end December 2017
3
Where EBRD invest
Activities
Project finance
Loans
• Loans are tailored to meet the particular
requirements of a project. The credit risk
may be taken entirely by the EBRD or partly
syndicated to the market.
Equity investments
• These may be undertaken in a variety
of forms.
When the EBRD takes an equity stake, it
expects an appropriate return on its
investment and will only take a minority
position.
Guarantees
• We also provide guarantees to help
borrowers gain access to financing through
our Trade Facilitation Programme.
SME finance
• through financial institutions and risk-
sharing facilities, and we finance small
businesses directly
4
Other ways to work with us
Advisory services for businesses
• In addition to finance, the EBRD provides
business advice to small and medium-sized
businesses.
Procurement opportunities
• The EBRD provides many opportunities
for suppliers, contractors and consultants
worldwide.
Trade Facilitation Programme
• The programme aims to promote foreign
trade to, from and amongst the EBRD
countries of operations and offers a range
of products to facilitate this trade.
Projects in all key business sectors
5
Telecomms, Informatics & Media
Property &Tourism
Agribusiness
Transport Municipal & EnvironmentalInfrastructure
FinancialInstitutions
NaturalResources
Energy
Manufacturing& Services
Sustainable Infrastructure Group
Sustainable Infrastructure Group: Energy
• EBRD energy investments cover electricity
generation (conventional, large hydro and
renewables), electricity transmission, electricity
distribution and natural gas distribution & pipelines.
• In 2018 EBRD invested over €1.6 billion in 34
projects in the energy sector.
• Cumulative EBRD financing in the energy sector
since 1992 has exceeded €13 billion, spread
across over 320 projects.
• In the last five years, annual energy investments
exceeded €1 billion and renewable energy
generation projects account for more than half of
those funds.
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Municipal & Env Inf29%
Transport26%
Energy45%
2018 SIG Annual Investment, by
sector € 3.57 billionEnergy sector
EBRD’s renewable energy portfolio is around
EUR 3 billion
• EBRD has been active in financing renewables projects since the first project – 156 MW Saint Nikola Wind Farm in
Bulgaria in 2008.
• Complex and award winning renewable transactions include: Burnoye Solar (Kazakhstan), Krnovo Wind Farm
(Montenegro), Salkhit Wind Farm (Mongolia), Ma’an Solar Programme Round 1 and 2 (Jordan), Efeler Geothermal
Plant (Turkey), Khalladi Wind Farm (Morocco), Dolovo and Kovacica Wind Farms (Serbia) and Benban Solar (Egypt).
7
Annual investment in renewables
overtook fossil fuels
Solar becomes the largest
renewables source
EBRD is the leading financier of renewable
energy in its region
EBRD Renewable projects since inception to Feb 2019
• 169 projects in 31 countries
• 7 GW of new renewable capacity financed
• €5 billion of EBRD investment
• Equivalent total project value of €16 billion
Greenfield capacity only shown on map. MW total is greater than shown on
map due to regional projects not included and other minor adjustments.
Albania
32 MW hydro Armenia
22 MW hydro
Bulgaria
26 MW hydro
216 MW wind
Croatia
1.5 MW biomass
Cyprus
12 MW solar
Egypt
751 MW solar
Estonia
20 MW biomass
193 MW wind
North Macedonia
27 MW hydro
10 MW solar
Georgia
414 MW hydro
20 MW wind
Greece
125 MW wind
30 MW various
Hungary
158 MW wind
Jordan
265 MW solar
127 MW wind
Kazakhstan
100 MW hydro
395 MW solar
Mongolia
30 MW solar
155 MW windMontenegro
4 MW hydro
72 MW wind
Poland
130 MW biomass
1,083 MW wind
Romania
50 MW solar
557 MW wind
Serbia
4 MW biogas
26 MW hydro
263 MW wind
Turkey
190 MW geothermal
85 MW solar
520 MW wind
Ukraine
3 MW hydro
4 MW biogas
66 MW biomass
229 MW solar
215 MW wind
Morocco
120 MW wind
Belarus
4 MW biogas
Bosnia and Herzegovina
26 MW hydro
Russian Federation
40 MW geothermal
Azerbaijan
113 MW hydro
Green Economy Transition Initiative
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Objective to achieve 40% of Annual Bank Investments
in ‘green’ financing, by 2020
• Energy efficiency
• Renewable energy
• Water efficiency
• Resilience to climate change
• Waste minimisation and material efficiency
• Pollution control and environmental compliance
Activities covered as part of the Green Economy
Transition:
The EBRD will promote secure, affordable and sustainable energy
through the transition to a market-oriented low-carbon energy sector.Aim
Interrelated
strategic
directions
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What we will not
do
No thermal coal mining or coal-fired electricity generation capacity
No upstream oil exploration
No upstream oil development except in rare and exceptional circumstances
Interface with EBRD-wide approaches, initiatives and policies, other sector
strategies, and country-specific characteristics.
Decarbonisation
and
electrification
1 Cleaner oil
and gas
value chains
2 Well-
functioning
energy
markets
3 Energy-
efficient and
inclusive
economies
4
How?
By decarbonising economies, making them highly efficient, powered by
renewable energy and increasingly electrified
Energy Sector Strategy 2019-2023
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
• RE Frameworks
• Small Financing
Facilities
• Regulatory frameworks
• PPA drafting
• Grid absorption studies
• Designing RE auctions
• Energy markets (i.e. balancing)
11
EBRD in Greece
12
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Sustainable Infrastructure Sector
EBRD Priorities
• Support further integration of Greece in the region through promoting
key transport links, logistics infrastructure and regional
interconnectors.
• Support energy market reforms (invested in Energy Exchange),
decarbonisation of the economy and privatisations
• Expansion and modernisation Investments in the electricity and gas
distribution girds.
• Support further expansion of renewable energy , particularly those
awarded through the RES auctions and mainly with the private sector
• Promote hybrid (renewable and storage) solutions to non-
interconnected islands and off-shore wind.
• Improve quality of municipal services through commercialisation,
better governance and improved operational and resource efficiency.
€28.3 million
Invested in 2017
€28.3m participation in
the €74.5m Eurobond
issue to support
company’s capex in
renewable energy
projects
€50m bond loan to
support development,
construction and
operation of new
renewable energy
projects
€50 million
Invested in 2016
14
Sustainable Infrastructure Sector
Indicative Investments
€187 million
Invested in 2017
€187m long-term
financing for the
modernisation,
maintenance and
operation of 14 regional
airports
Invested in 2018
€10.0 million
€10m participation
in the €90m bond
issued and listed
on Athex
€500m loan for the
construction of the
Trans Adriatic Pipeline
(TAP)
€500 million
Invested in 2018
€18m long-term senior
debt financing for the
construction,
financing, refinancing
and operation of a
wind farm portfolio
€16.5 million
Invested in 2018
€1m investment to
finance the
establishment of the
first energy exchange
in the country
€1 million
Invested in 2018
€25m participation in
the €200m senior
unsecured bond to
finance the Pre-
Delivery-Payments for
aircraft purchases
€25 million
Invested in 2019
€15 million participation
in the €120 million
Corporate bond issued
and listed on Athex
€15 million
Invested in 2018
15
Greek Renewable Energy Framework
Framework size EUR 300 million1
Sectors coveredElectricity distribution and transmission
Electricity generation from renewable sources3
Type of Clients Public or private clients4
Qualification
Projects that are 100% compliant with the Green Economy
Transition approach. i.e. for grids: (i) network modernisation and
expansion investments aiming to reduce losses, remove
technical/technology barriers that hinder renewables integration,
and improve efficiencies; (ii) communication systems and
automatic control systems investments aiming to support
implementation of smart grid systems; and (iii) investments
resulting in direct and indirect carbon emissions reductions.
5
EBRD Finance Up to 35% of the Total Project Cost2
Contacts
21
Georgios Gkiaouris
Senior Banker, Energy EMEA
Sustainable Infrastructure Group
Tel: + 44 020 7338 7953
Email: giaourig@ebrd.com
For more information on EBRD’s
Green Economy Transition projects
and initiatives:
http://www.ebrd.com/what-we-
do/get/knowledge-hub.html
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