Are Public Power Utilities the More Cost Effective and Less Risky Solution for Renewable Energy Based Power Generation ? Mohamed Mostafa El-Khayat New and Renewable Energy Authority, NREA – Egypt [email protected]www.energyandeconomy.com LAS - Cairo, April 23-24, 2012
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Mohamed Mostafa El-Khayat New and Renewable Energy Authority, NREA – Egypt
Are Public Power Utilities the More Cost Effective and Less Risky Solution for Renewable Energy Based Power Generation?. Mohamed Mostafa El-Khayat New and Renewable Energy Authority, NREA – Egypt [email protected] www.energyandeconomy.com LAS - Cairo, April 23-24, 2012. - PowerPoint PPT Presentation
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Are Public Power Utilities the More CostEffective and Less Risky Solution for
Renewable Energy Based Power Generation?
Mohamed Mostafa El-KhayatNew and Renewable Energy Authority, NREA – Egypt
- Power public utilities has an important role to catalyze private sector to invest in RE.
- Power public utilities could establish a project for social aspects, regardless its profitability, consequently public utilities should be compensated to keep a reasonable income.
- We have to deal with public utilities as a private companies owned by the state.
والتى تشمل:،االستدامة،إعادة هيكلة سياسات الطاقة ،منع انبعاث غازات الصوبة الزجاجية ،توزيع التوليد وتنويع مصادره،زيادة القدرات المركبة،تأمين مصادر الطاقة ،تطوـير الصناعات الجديـدة،إيجـاد فرص عمل جديدة ،تطوـير المناطق الريفية ــل ــ ــا )مث ــ ــا بعينه ــ عدم اللجوء لتكنولوجي
الطاقة النووية( تخفيـــف الضغـــط علـــى الوقود )صـــعوبة
ــف ــى الوقود، ارتفاع ـتكاليـ ــول علـ الحصـاالستخراج، ...(
rate and long repayment period).- The high growth rate of renewable
energy technologies reflects its ability to perform its goals which could include:- Sustainability- Reform of energy policies- Abatement of GHGs- Distribute Generation sources- increase installed capacity- Energy security- Local manufacturing- Develop rural areas- Decrease dependency on fossil fuel- increase share of RE
دعم الوقود اإلحفورى ــة ــ ــة للطاق ــ ــع أهداف شامل ــ وض
ــل ــيب ك ــد نص المتجددة دون تحديمصدر
تدابير غير واضحة
Introduction:- The finance sector approaches
investments in renewable energy in the same manner as any other investments.
- Renewable energy investments require an additional level of understanding. These include the influence of policy and regulation on the viability of an investment, including the legal basis and durability of any subsidies, grants, tradable certificates or tax credits.
- Renewable Energy pitfalls include:- Subsidy of fossil fuels- Cross-Cutting Objectives- Unclear measures
Policy Pitfalls
?1- Governments should support either renewable energy or bread!!
مــــقدمـة Introduction:
Policy Pitfalls2- Post is more secured than e-mails, or e-mails are
faster than post.
مــــقدمـة Introduction:
المشهد الراهن للطاقة المتجددةCurrent Situation of Renewable Energy
Selected Indicators, 2008, 2009, & 2010
Source:
Current Situation of Renewable Energy
Source:
20%
Renewable Energy Share of Global Electricity Production, 2010
Current Situation of Renewable Energy .. Cont.
Small Distributed Capacity
Source: UNEP
Global New Investment in Renewable Energy, 2004 – 2010, ($bn)
Current Situation of Renewable Energy .. Cont.31%
Source: UNEP
Financial New Investment and SDC in Renewable Energy by Technology, 2010, and Growth on 2009 ($bn)
Current Situation of Renewable Energy
Source:
Total Global Investment in Renewable Energy, 2010
Current Situation of Renewable Energy .. Cont.
مصــادر التمـويلFinancing Resources
Public
Public Private
partnership , PPP.
Private
Financing Resources
Partnerships
Source: UNEP
Global Transaction in Renewable Energy by 2010 ($bn)
VC: Venture CapitalPE: Public Equity, SDC: Small Distributed CapacityRD&D: Research, Development, and Demonstration.R&D: Research and Development.M&A: Merge and Acquisition.
Financing Resources
US$ 90 bn
(2006)
US$ 129 bn(2007)
US$ 130 bn(2008)
US$ 160 bn(2009)
US$ 211 bn(2010)
Renewable Energy Investments in Last Five Years
Financing Resources ….. Cont.
مخــاطر االستثمـارInvestment Risks
Renewable Energy Investment RisksGeneral Risks
LegislativeRisks
MarketRisks
TechnicalRisks
Investment Risks
General Risks
Economic Risks
Inflation
Local Procedures
FinancialRisks
InterestRate
Insurance
Re-Investment
PoliticalRisks
Instability
Changing of
Laws
Investment Risks …. Cont.
Other Risks
LegislativeRisks
IncentiveAmbiguit
y Short - Term
Lengthy Procedur
es
MarketRisks
Current Energy Prices
Incentives for RE
Future EnergyPrices
CarbonMarket
PotentialCompetit
ors
Investment Risks …. Cont.
Other Risks
TechnicalRisks
TechnologySuitability
Construction
Risks
Environmental
RisksO&MRisks
Investment Risks …. Cont.
متطلبات الشركات العامة للكهرباءNeeds of Public Power
Utilities
Needs of Public Power Utilities
Needs of Public Power Utilities
Effective Role of Government
Availability of Local Financing
Effective Development Agencies
Clear Policy Life Cycle
Needs of Public Power Utilities … Cont.
Needs of Public Power Utilitiesa)
Effective Role of Government
b(Availability of Local Financing
c(Effective Development Agencies
d(Clear Policy Life Cycle
ــى ــر ف ــاعل ومؤث ــى فـ دور حكومشكل:
ــل يعطـــى شركات - ــع إطار عمـ وضـتثمار ـفي منتجات المراـفق ـحق االـس
بيئية نظيفة.ــل - ــن اآلليات تشمـ ــة مـ عرض حزمـ
مشروعات الطاقة المتجددة،تعتـمد أغـلب الدول النامـية عـلى المـنح -
ن ا ال يمـك و ـم ة، وـه والقروض الخارجـيمعه وضع خطط مستقبلية آمنة.
- مع ضعف استثمارات الطاقة المتجددة بالدول الناميــــة يحتاج القطاع إلــــي ق اـستقرار ع تتطـلب تحقـي آليات تشجـيــة التجارة ــ ــر حري ــ ــادي، وتوفي ــ اقتصع ة ـم وتطـبيق سـياسات اسـتثمار جاذـب
خفض مخاطر التمويل.
b) Availability of Local Financing
• Availability of financing is a crucial issue for supporting renewable energy technologies.
• Developed countries assign soft loans for such projects.
• Most of developing countries are grant-or-foreign loans-dependent, which could not guarantee its future targets.
• Renewable energy sector in developing countries need economic stability, attractive policies, and low risk investment.
Needs of Public Power Utilitiesa)
Effective Role of Government
b)Availability of Local Financing
c)Effective Development Agencies
d(Clear Policy Life Cycle
Needs of Public Power Utilities … Cont.
ل ة مـث ن تقوم المؤـسسات اإلنمائـي ن ـأ يمـكــة بدور ــة الوطني البنوك والصــناديق النقديــلة ــع المعلومات ذات الصـ ــي جمـ بارز فـبقطاع الطاقــة المتجددة وإعدادهــا لتكون نواة لالسـتثمار المسـتقبلي، فعلـى سـبيل
المثال، يمكن للمصارف:-ــواق • ــ ــن أس ــ ــد معلومات ع ــ بناء قواع
الطاقـــــة النظيفـــــة ومدي قدرة هذه البنوك ـفي تمويلـها وتقدـيم براـمج تتمـيز بالمروـنة ـفي دـعم كاـفة المشارـكـين ـفي هذه الســوق )المســتثمرين، الوســطاء،
إلى اقتصاد أخضر.ال يمكـــن البدء بتطويـــر مشروعات •
طاقـة متجددة علـى أسـس صـحيحة دون هيكـلة حقيقـية وـصحيحة للجهات
المعنية،
• No magic recipe for RE. Tailored policies are needed.
• Understand that RE is not a matter for Governments only, but we need to move it to citizens level, either for using it or manufacturing its simple systems.
• SD is one of our targets and we have to know that RE is one of the real roads to reach it and also greening our economy.
Wrap-up of Key Messages
ل وشراكات • ــات تموـي ن آلي ث ـع البـحد المخاـطر، ز بانخفاض ـح جديدة تتمـيوتحقيـق عوائـد مقبولـة، وعليـه فقـد ن العام ن القطاعـي تكون الشراكـة بـي
والخاص أحد هذه اآلليات.التمويــل الوطنــى هــو أحــد الروافــد •
• Look for new financial mechanisms and partnerships enjoy with low risk and reasonable profitability. Consequently, Public Private Partnership, PPP, could be one of these mechanisms.
• National financing is a must.• National banks could study its to
support RE as a partner in addition to offering loans.
• Study availability of issuing Green Sukuk to finance RE projects.