Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
1
EIB Financing of Renewable Energy David Kerins
European Investment Bank
“A competitive market environment for renewables” – UNECE GERE, 2014
The EU bank
• Natural financing partner
for the EU institutions since
1958
• More than 90% of lending
is within the EU
• Shareholders: 28 EU
Member States
European Investment Bank Group 2
Investing in Europe’s growth
Wide geographic focus
The world’s largest multilateral lender
European Investment Bank Group 3
Our products
We help catalyse investment
European Investment Bank Group 4
LENDING BLENDING ADVISING
Loans
But also:
Equity participation
(Crescent Capital)
Combining EIB finance
with EU budget
(Green for Growth)
Higher risk projects for
innovation (InnovFin)
Prepare & implement
projects (WBIF,
ELENA)
Attracting FUNDING for long-term growth
EIB Energy Lending 2007-2013
European Investment Bank Group 5
2.15 2.56
4.88 6.31
5.57
2.83
4.80 0.21 0.76
1.45
2.37
1.21
0.79
2.10
2.57
5.38
6.07
6.60
4.63
4.10
5.20
2.11
1.64
2.42
2.88
1.39
0.70
0.20
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2007 2008 2009 2010 2011 2012 2013
Security of supply
Energy Networks
Energy Efficiency
Renewable Energy
7.04
10.34
14.82
18.16
8.42
12.30 12.80
European Investment Bank 6
Investment drivers
General context
• Political support
• Social consensus
• Strategic planning
• Sufficient capacity
of the promoters
Regulatory
Framework
• Predictable
• Stable
• Acceptable profit
Natural and
technical conditions
• Natural resources
• Grid access and
capacity
• Licensing process
Project Requirements
Projects must:
• Meet at least one of the EIB’s objectives
• Be technically sound
• Be financially viable
• Show an acceptable economic return
• Comply with environmental protection and
procurement regulations
European Investment Bank Group 7
Financing Facilities
2 main facilities:
• Direct Loans
• Large-scale projects (more than EUR 25m)
• Intermediated Loans
• Small and medium-scale projects (particularly to
SMEs) via national and regional intermediary banks
• Lending decision remains with the financial
intermediary
European Investment Bank Group 8
European Investment Bank 9
Projects example – Green for Growth Fund Southeast
Europe (GGF)
Financing Small-Scale Renewable Energy Projects in the Southeast Europe region including Turkey and the Eastern European Neighbourhood region.
Hydro Power (<30 MW)
Wind farms (<30 MW)
Solar (thermal and photovoltaic)
Biogas / Biomass (no food-crops)
Geothermal Projects
European Investment Bank 10
Projects example – TA under Western Balkan
Investment Framework (WBIF)
Examples of TAs for projects:
1. Irrigation and Hydroelectric Power Scheme Zletovica, HS Zletovica, FYROM;
2. Wind farm Poklecani EPHZHB Bosnia and Herzegovina;
3. Hydroelectric Power Plant Krusevo, EPBIH, Bosnia and Herzegovina;
4. Wind Farm Vlasic, EPBIH, Bosnia and Herzegovina etc.
TA for financing
preparation of Feasibility
study including Technical
Design, Environmental and
Social Impact Assessment
and Tender documentation
for construction works
11
Thank you! For more information…
http://www.eib.org/
European Investment Bank 12
BACK UP
13
EIB’s E&S standards http://www.eib.org/attachments/thematic/environmental_and_social_practices_handbook.pdf
Comply with EU policy, principles, standards and practices, especially the requirements of EU legislation, for the protection of the environment, and satisfy social safeguards
Potential impacts acceptable: public consultation, natural habitats, forestry, indigenous people, involuntary resettlement, child and forced labour, cultural heritage, waterways, climate change
Typical criteria for wind: local development plan / SEA and cumulative impact + impacts on: landscape / visual, sensitive areas, migrating / nesting / feeding birds & bats, fauna & flora species of conservation value, local residents, other impacts from auxiliary facilities
Guidance note: http://ec.europa.eu/environment/nature/natura2000/management/guidance_en.htm
14
EIB’s procurement policy http://www.eib.org/attachments/thematic/procurement_en.pdf
Obtain the economically most advantageous offer (best value for money) in purchasing the works, goods and services necessary to implement a project
Principles: Competition as a basis to obtain attractive offers
Fairness vis a vis competitors
Appropriate selection process
Most logical criterion: net present cost of constructing and operating the project component over its lifetime
Transparency and accountability (well defined and documented)
In EU Law on Public Procurement to be complied with Determine whether the project is ruled by public or private sector procurement
Relevant directive concerning competitive tendering on the basis of fair and non-discriminatory terms
Open or restricted procedures with publications in OJEU
Candidate and Potential Candidate
Countries
• EIB can lend up to EUR 9bn with EU guarantee
during 2007-2013
• Pre-Accession Facility
• Priorities:
• Projects supporting accession agreements with EU
• Incorporation and implementation of acquis communautaire
• Loans of EUR 3bn in 2013
• Total loans of EUR 22bn 2007-2013 (excluding Croatia)
25/11/2014 European Investment Bank Group 15
Russia & Eastern Neighbours
• up to EUR 3 848m with EU guarantee during 2007-2013
• Eastern Partners Facility
• Loans of EUR 1.8bn in 2013 for: Small and medium-scale projects implemented by SMEs and mid-caps, Transport, Environmental infrastructure
• Total loans of EUR 4.8bn 2007-2013
25/11/2014 European Investment Bank Group 16