Transcript GE Energy Financial Services

GE
Energy Financial Services
e8-GEF-UNDESA-UNESCAP
Financing Sustainable
Electrification
South-East Asia Dialogues
Bangkok, Thailand
September 8, 2009
James Berner, Managing Director
GE Energy Financial Services, Asia
Introducing
GE Energy Financial Services
GE: Where Energy Financial Services fits
Energy
Infrastructure
Treasury
Technology
Infrastructure
GE Capital
GE Money
Energy Financial
Services
Commercial
Finance
NBC
Universal
Aviation
Financial
Services
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GE Energy Financial Services (EFS)
Singapore office
opened in Jan 2008
for SE & E Asia
Typical
Investment Size
$15MM - $125 MM
EFS’s 25+ Years
in Energy Finance
GE’s 100+ Years in
Energy
Global equity
investor and
project finance
lender for the
energy industry
Greenfield &
Operating
Assets
Expertise in
Renewable Energy
US$22 Bn. Assets
22 GW Portfolio
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GE EFS Singapore Office: Southeast and East Asia
Asia-Pac
Offices
Core Countries
Focus Sectors
India
IPP
Middle East
Renewables
SE & East
Asia
Vietnam
Cogeneration
Philippines
Australia
Thailand
Malaysia
Indonesia
Midstream O&G
Offshore O&G
Singapore
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GE EFS Renewable Energy Portfolio
$4 Billion
Renewable Energy
Portfolio
Geothermal 1% Biofuels 3%
Solar 5%
Venture Capital 1%
Biomass 4%
Hydro
6%
Wind 79%
7,000+ MW
• Investments across renewable
sectors
• Equity, preferred equity,
venture capital and project
finance
• Diverse portfolio of turbine
providers, regulatory regimes,
and financial structures
• Large-scale projects in solar PV
and hydropower
• In Dec. 2008, Renewable Energy
Trust Asia (RETA) established
to invest in SE Asia & India with
Epuron
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Perspectives on risk and
opportunities for
renewable power in Asia
The Asia renewables opportunity
2005-2020 growth outlook* (non-hydro)
S
Korea
• Wind
• Solar
Thailand
• Biomass
• Biogas
• Wind
Vietnam
• Biomass
• Biogas
• Wind
Japan
• Wind
• Solar
Taiwan
• Wind
• Solar
Philippines
• Biomass
• Biogas
• Geothermal
• Wind
Malaysia
• Biomass
• Biogas
2005
20
2020*
1 Mtoe
2 Mtoe
5 Mtoe
10 Mtoe
* Includes non-commercial renewable fuels
Source: Institute of Energy Economics of Japan (2007 forecast,
basecase) ;
GE Energy Financial Services
Indonesia
• Biomass
• Biogas
• Geothermal
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25
Renewables policy design: general observations
• Investment incentives, especially price-based mechanisms, typically have
binary outcomes: either they are attractive enough to drive investment, or not
• Renewables schemes should be part of a larger vision, regulatory framework,
and planning approach for the energy sector
• Policies function best when they

address both economic barriers (returns) and non-economic barriers (e.g.,
obstacles to grid access, poor power market design, lack of information and
training, social acceptance issues)

are predictable and transparent in order to attract investments

incorporate transitional incentives, where necessary, to move technologies
towards market competitiveness

are tailored to specific technologies

take into account the potential impact of large-scale penetration of renewables on
the entire energy system
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Renewable energy incentives in Southeast Asia
Indonesia
Malaysia
Tariff adders / feed-in tariffs
Renewable Portfolio Standard,
offtake guarantees
*
*
Capital subsidies, grants, or
rebates
Investment or other tax credits
Sales tax, energy tax, or VAT
reduction

Philippine
s
Thailan
d
**
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Vietnam
*
Tradable renewable energy
certificates
Public loans or financing
*Biofuels mandates (non-power)
**Pending enactment of FITs.
Source: Renewable Energy Policy Network for the 21st Century
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Conclusions
• Most renewable energy more costly to build per
MW than conventional power plants
• Policy incentives critical to attracting private
investment to the renewable energy sector
• Predictable long-term tariffs via PPAs best option
• Grid access and upgrading transmission
infrastructure also important
• Investment credits and tax holidays also useful
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Contact:
James Berner
GE
Energy Financial Services
240 Tanjong Pagar Rd.
#05-00 GE Tower
Singapore 088540
Phone: +65 6326 3478
Email: [email protected]
www.geenergyfinancialservices.com
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