Transcript The Caribbean Renewable Energy Development Programme, CREDP Roland Clarke, Ph. D. Project Manager, CREDP Tel: 592 222 0002 thru 9 ext.

The Caribbean Renewable
Energy Development
Programme, CREDP
Roland Clarke, Ph. D.
Project Manager, CREDP
Tel: 592 222 0002 thru 9 ext. 2631
[email protected]
http://www.caricom.org/jsp/projects/credp.jsp
16 May 2006
BACKGROUND AND
CONTEXT
Purpose: To prepare a regional project to
remove barriers to the use of renewable
energy and thereby foster its development
and commercialisation
 Barriers –

• Policy & lack of legislative and regulatory reform
• Financing i.e TA for project preparation, and lack
of dedicated equity and debt financing for projects
• Capacity i.e. training
• Information i.e. web site, mailing list, DVD’s
COUNTRIES
The Bahamas
 Barbados
 Belize
 Cuba
 Dominica
 Grenada
 Guyana

Jamaica
 St. Kitts & Nevis
 Saint Lucia
 St. Vincent & The
Grenadines
 Trinidad & Tobago
 Suriname

UNDP/GEF & GTZ Financing
(US$)
 Project
funded by the GEF/UNDP and
the German GTZ.

TOTAL:
• UNDP/GEF Project – Phase II
• PDF B Phase 1 – Part II
Sub-total GEF:
 GTZ

6.646 MM
4.076 MM
0.350 MM
4.426 MM
2.220 MM
CREDP Eligibility Criteria

General
• Electricity from wind, hydro, solar PV, geothermal,
biomass. Also solar water heating
• R&D projects will be excluded.
• Manufacturing projects will be excluded
• Only studies aimed at preparing projects for bank
financing
• No general utility planning studies

Hydro
• Large scale hydro dam projects must meet GEF
environmental damage criteria
CREDP Eligibility Criteria
 Geothermal
• No early stage support under CREDP
• Developers must provide
– a complete resource assessment,
– an environmental impact assessment, and
– an economic assessment
• OAS/UNEP GeoCaribes project targets
early stage with drilling risk fund and policy
intervention
CREDP Economic Selection
Criteria
 No
net increase in GHG emissions
 BCR > 1 or NPV > 0 or DSCR > 1.5
 After Tax ROI Equity > 15%
 Must have net foreign exchange
savings
 Government letter of support (project
specific)
CREDP’s Policy Activities
Development of legal drafting instructions
 Development of templates for

• Electricity Supply Act or License
• Regulatory Act
• Energy Policy and Plan
Inputs on RE to the Regional Energy Policy
 Research on policy initiatives and electric
utility perspectives in the Caribbean
 Support national energy committees with
funding and technical consultants

CREDP’s Policy Activities
Development of legal drafting instructions
 Development of templates for

• Electricity Supply Act or License
• Regulatory Act
• Energy Policy and Plan
Inputs on RE to the Regional Energy Plan
 Research on policy initiatives and electric
utility perspectives in the Caribbean
 Support national energy committees with
funding and technical consultants

Policies
Policies
Policies
Policies
Policies
Policies
Utility Survey Responses - 1
Utility Survey Responses – 1
cont’d
Utility Survey Responses - 2
Utility Survey – 2 cont’d
Template documents available
 Purchased
Power Agreement, PPA
 Interconnection Agreement
 Equipment, Procurement &
Construction (EPC) Contract
 O&M Contract/Specifications
Small Grants available for
Pre-Feasibility Studies
Typically about US$15,000 per country
 Purpose: To conduct pre-feasibility studies
and RETScreen analysis
 Typically includes visit by CREDP and a
technical consultant
 Projects must pass pre-feasibility screen and
CREDP selection criteria before further
consideration by Caribbean Renewable
Energy Technical Assistance Facility,
CRETAF

Design of Financing
Mechanisms - CRETAF

CRETAF ($1.6 MM), subset of CREDP
• Purpose: Final preparation of projects for bank
financing
• Up to $100,000 per country for all projects
• Projects must be screened by CREDP
using RETScreen – www.retscreen.org
• Design as a contingently recoverable loan i.e.
– Loan repayable if and only if the project
receives investor or debt financing
– Loan converted to a grant otherwise
Studies funded by CRETAF
 Detailed
site specific resource
assessments
 Grid integration studies
 Development of PPA’s
 Environmental impact assessments
 Detailed Feasibility Studies
Design of Financing
Mechanisms - CREF
 CREF
- Caribbean Renewable Energy
Fund
 Currently under development, Q3 2006
 Fund raising Q4 2006 and beyond
 Purpose: Debt and/or equity financing
for RE projects
• Also intended to leverage debt from
commercial and other banks
Next Steps for You

Contact us for assistance for
• National Energy Committees – we provide a
template document that gives a framework and a
guide for the development of a national energy
policy document. We also give technical
assistance and financial support to Committees.
• Pre-feasibility studies – we provide technical
assistance, and financial support of US$15,000 for
RETScreen studies

Give us 10 weeks advanced notice
View our Web Site

http://www.caricom.org/jsp/projects/credp.jsp
 Thank you