The Caribbean Renewable Energy Development Programme, CREDP Roland Clarke, Ph. D. Project Manager, CREDP Tel: 592 222 0002 thru 9 ext. 2631 [email protected].

The Caribbean Renewable Energy Development Programme, CREDP

Roland Clarke, Ph. D.Roland Clarke, Ph. D.

Project Manager, CREDPProject Manager, CREDP

Tel: 592 222 0002 thru 9 ext. 2631 Tel: 592 222 0002 thru 9 ext. 2631 [email protected]@caricom.org

http://www.caricom.org/jsp/projects/credp.jsphttp://www.caricom.org/jsp/projects/credp.jsp

16 May 200616 May 2006

BACKGROUND AND BACKGROUND AND CONTEXTCONTEXT

Purpose: To prepare a regional project to Purpose: To prepare a regional project to remove barriers to the use of renewable remove barriers to the use of renewable energy and thereby foster its development energy and thereby foster its development and commercialisationand commercialisation

Barriers – Barriers – • Policy & lack of legislative and regulatory reformPolicy & lack of legislative and regulatory reform• Financing i.e TA for project preparation, and lack Financing i.e TA for project preparation, and lack

of dedicated equity and debt financing for of dedicated equity and debt financing for projectsprojects

• Capacity i.e. trainingCapacity i.e. training• Information i.e. web site, mailing list, DVD’sInformation i.e. web site, mailing list, DVD’s

The Bahamas Barbados Belize Cuba Dominica Grenada Guyana

Jamaica St. Kitts & Nevis Saint Lucia St. Vincent & The

Grenadines Trinidad & Tobago Suriname

COUNTRIESCOUNTRIES

UNDP/GEF & GTZ Financing (US$)

Project funded by the GEF/UNDP and the German GTZ.

TOTAL: 6.646 MM• UNDP/GEF Project – Phase II 4.076 MM• PDF B Phase 1 – Part II 0.350 MM

Sub-total GEF: 4.426 MM GTZ 2.220 MM

CREDP Eligibility CriteriaCREDP Eligibility Criteria

General General • Electricity from wind, hydro, solar PV, Electricity from wind, hydro, solar PV,

geothermal, biomass. Also solar water heatinggeothermal, biomass. Also solar water heating• R&D projects will be excluded.R&D projects will be excluded.• Manufacturing projects will be excludedManufacturing projects will be excluded• Only studies aimed at preparing projects for bank Only studies aimed at preparing projects for bank

financingfinancing• No general utility planning studiesNo general utility planning studies

HydroHydro• Large scale hydro dam projects must meet GEF Large scale hydro dam projects must meet GEF

environmental damage criteriaenvironmental damage criteria

CREDP Eligibility CriteriaCREDP Eligibility Criteria

GeothermalGeothermal• No early stage support under CREDPNo early stage support under CREDP• Developers must provideDevelopers must provide

– a complete resource assessment, a complete resource assessment, – an environmental impact assessment, and an environmental impact assessment, and – an economic assessmentan economic assessment

• OAS/UNEP GeoCaribes project targets OAS/UNEP GeoCaribes project targets early stage with drilling risk fund and policy early stage with drilling risk fund and policy interventionintervention

CREDP Economic Selection CREDP Economic Selection CriteriaCriteria

No net increase in GHG emissionsNo net increase in GHG emissions BCR > 1 or NPV > 0 or DSCR > 1.5BCR > 1 or NPV > 0 or DSCR > 1.5 After Tax ROI Equity > 15%After Tax ROI Equity > 15% Must have net foreign exchange Must have net foreign exchange

savingssavings Government letter of support Government letter of support

(project specific)(project specific)

CREDP’s Policy ActivitiesCREDP’s Policy Activities

Development of legal drafting instructionsDevelopment of legal drafting instructions Development of templates forDevelopment of templates for

• Electricity Supply Act or LicenseElectricity Supply Act or License• Regulatory ActRegulatory Act• Energy Policy and PlanEnergy Policy and Plan

Inputs on RE to the Regional Energy PolicyInputs on RE to the Regional Energy Policy Research on policy initiatives and electric Research on policy initiatives and electric

utility perspectives in the Caribbeanutility perspectives in the Caribbean Support national energy committees with Support national energy committees with

funding and technical consultantsfunding and technical consultants

CREDP’s Policy ActivitiesCREDP’s Policy Activities

Development of legal drafting instructionsDevelopment of legal drafting instructions Development of templates forDevelopment of templates for

• Electricity Supply Act or LicenseElectricity Supply Act or License• Regulatory ActRegulatory Act• Energy Policy and PlanEnergy Policy and Plan

Inputs on RE to the Regional Energy PlanInputs on RE to the Regional Energy Plan Research on policy initiatives and electric Research on policy initiatives and electric

utility perspectives in the Caribbeanutility perspectives in the Caribbean Support national energy committees with Support national energy committees with

funding and technical consultantsfunding and technical consultants

PoliciesPolicies

PoliciesPolicies

Policies

PoliciesPolicies

PoliciesPolicies

PoliciesPolicies

Utility Survey Responses - Utility Survey Responses - 11

Utility Survey Responses – Utility Survey Responses – 1 cont’d1 cont’d

Utility Survey Responses - Utility Survey Responses - 22

Utility Survey – 2 cont’dUtility Survey – 2 cont’d

Template documents Template documents availableavailable

Purchased Power AgreementPurchased Power Agreement, PPA, PPA Interconnection AgreementInterconnection Agreement Equipment, Procurement & Equipment, Procurement &

Construction (EPC) Contract Construction (EPC) Contract O&M Contract/SpecificationsO&M Contract/Specifications

Small Grants available for Small Grants available for Pre-Feasibility StudiesPre-Feasibility Studies

Typically about US$15,000 per countryTypically about US$15,000 per country Purpose: To conduct pre-feasibility Purpose: To conduct pre-feasibility

studies and RETScreen analysisstudies and RETScreen analysis Typically includes visit by CREDP and a Typically includes visit by CREDP and a

technical consultanttechnical consultant Projects must pass pre-feasibility screen Projects must pass pre-feasibility screen

and CREDP selection criteria before and CREDP selection criteria before further consideration by Caribbean further consideration by Caribbean Renewable Energy Technical Assistance Renewable Energy Technical Assistance Facility, CRETAFFacility, CRETAF

Design of Financing Design of Financing Mechanisms - CRETAFMechanisms - CRETAF

CRETAF ($1.6 MM), subset of CREDPCRETAF ($1.6 MM), subset of CREDP• Purpose: Final preparation of projects for bank Purpose: Final preparation of projects for bank

financingfinancing

• Up to $100,000 per country for all Up to $100,000 per country for all projectsprojects

• Projects must be screened by CREDP Projects must be screened by CREDP using RETScreen – using RETScreen – www.retscreen.orgwww.retscreen.org

• Design as a contingently recoverable loan i.e.Design as a contingently recoverable loan i.e.– Loan repayable if and only if the project Loan repayable if and only if the project

receives investor or debt financing receives investor or debt financing – Loan converted to a grant otherwiseLoan converted to a grant otherwise

Studies funded by CRETAFStudies funded by CRETAF

Detailed site specific resource Detailed site specific resource assessmentsassessments

Grid integration studiesGrid integration studies Development of PPA’sDevelopment of PPA’s Environmental impact Environmental impact

assessmentsassessments Detailed Feasibility StudiesDetailed Feasibility Studies

Design of Financing Design of Financing Mechanisms - CREFMechanisms - CREF

CREF - Caribbean Renewable CREF - Caribbean Renewable Energy FundEnergy Fund

Currently under development, Q3 Currently under development, Q3 20062006

Fund raising Q4 2006 and beyondFund raising Q4 2006 and beyond Purpose: Debt and/or equity Purpose: Debt and/or equity

financing for RE projectsfinancing for RE projects• Also intended to leverage debt from Also intended to leverage debt from

commercial and other bankscommercial and other banks

Next Steps for YouNext Steps for You

Contact us for assistance forContact us for assistance for• National Energy Committees – we provide a National Energy Committees – we provide a

template document that gives a framework and template document that gives a framework and a guide for the development of a national a guide for the development of a national energy policy document. We also give technical energy policy document. We also give technical assistance and financial support to assistance and financial support to Committees.Committees.

• Pre-feasibility studies – we provide technical Pre-feasibility studies – we provide technical assistance, and financial support of US$15,000 assistance, and financial support of US$15,000 for RETScreen studiesfor RETScreen studies

Give us 10 weeks advanced noticeGive us 10 weeks advanced notice

View our Web SiteView our Web Site

http://www.caricom.org/jsp/projects/credp.jsphttp://www.caricom.org/jsp/projects/credp.jsp

Thank youThank you