The Caribbean Renewable Energy Development Programme, CREDP Roland Clarke, Ph. D. Project Manager, CREDP Tel: thru 9 ext 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 reformPolicy & lack of legislative and regulatory reform Financing i.e TA for project preparation, and lack of dedicated equity and debt financing for projectsFinancing i.e TA for project preparation, and lack of dedicated equity and debt financing for projects 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 COUNTRIES

UNDP/GEF & GTZ Financing (US$)   Project funded by the GEF/UNDP and the German GTZ.   TOTAL: MM UNDP/GEF Project – Phase II4.076 MM PDF B Phase 1 – Part II0.350 MM   Sub-total GEF: MM   GTZ2.220 MM

CREDP Eligibility Criteria b General Electricity from wind, hydro, solar PV, geothermal, biomass. Also solar water heatingElectricity from wind, hydro, solar PV, geothermal, 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 financingOnly studies aimed at preparing projects for bank financing No general utility planning studiesNo general utility planning studies  Hydro Large scale hydro dam projects must meet GEF environmental damage criteriaLarge scale hydro dam projects must meet GEF environmental damage criteria

CREDP Eligibility Criteria b Geothermal No early stage support under CREDPNo early stage support under CREDP Developers must provideDevelopers 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 interventionOAS/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 LicenseElectricity Supply Act or License Regulatory ActRegulatory Act Energy Policy and PlanEnergy 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 LicenseElectricity Supply Act or License Regulatory ActRegulatory Act Energy Policy and PlanEnergy 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 b Purchased Power Agreement, PPA b Interconnection Agreement b Equipment, Procurement & Construction (EPC) Contract b 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 financingPurpose: Final preparation of projects for bank financing Up to $100,000 per country for all projectsUp to $100,000 per country for all projects Projects must be screened by CREDP using RETScreen – must be screened by CREDP using RETScreen – Design as a contingently recoverable loan i.e.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, Q  Fund raising Q and beyond  Purpose: Debt and/or equity financing for RE projects Also intended to leverage debt from commercial and other banksAlso 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.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 studiesPre-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  b Thank you