Difference between revisions of "Funding Mechanisms for Solar Energy"

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= Sources of Investment Capital for PV in Developing Countries  =
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[[Portal:Solar|►Back to Solar Portal]]
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= Overview =
  
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So far, most of the investment capital for PV projects in developing countries has been provided by multilateral development banks (MDBs) and bilateral agencies through host governments. Private sector institutional investment in PV projects or enterprises in developing countries has been minimal. Private institutional investors tend to view PV projects as too small and too risky. Even where debt is available, the maturities tend to be too short.  
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Recently, '''multilateral development banks (MDBs)''' and bilateral agencies provided the majority of the investment capital for [[Photovoltaic (PV)|Photovoltaic (PV)]] projects in developing countries. This was accomplished by host governments. There is only small contribution of the private sector in PV projects. That might be due to private institutional investors' perception of PV projects as being too small and highly risky<ref>Philips, Michael; Browne, Brooks, H. Accelerating PV Markets in Developing Countries: http://www.repp.org/repp_pubs/articles/pv/7/7.html</ref><span style="line-height: 1.5em; font-size: 0.85em">.</span>
  
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== Bilateral and Multilateral Institutions That Provide Capital for PV ==
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= Bilateral and Multilateral Institutions that Provide Capital for Photovoltaic (PV) =
  
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Most of the investment capital for PV projects has been provided by bilateral agencies in host countries and by institutions such as MDBs. Bilateral institutions, in particular, have been active in providing training for PV system installers, project staff for designing and administering PV programs, and PV equipment for demonstration projects. Bilateral and multilateral institutions often take steps that they hope will make PV projects financially sustainable. One example is providing seed funding to establish a revolving fund. However, efforts to establish revolving funds often fail, and the revolving funds become “dissolving” funds they do not charge high enough interest to cover normal level of defaults, they have insufficient community participation and thus high defaults, and they have inadequately trained staffs.  
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Institutions, such as MDBs as well as bilateral agencies in host countries, have contributed the major part of financial support for '''photovoltaic (PV)''' projects. Especially bilateral institutions have shown themselves responsible for training of PV system installers, designing project staff and for administration of PV programs, and PV equipment for demonstration projects. Bilateral and multilateral institutions aim for financial sustainability of PV projects, for example providing seed funding to establish a [[Revolving Funds|revolving fund]]. However, the approach to establish revolving funds is often not successful. As a consequence the revolving funds become “dissolving” funds: they fail to charge interests that cover normal level of defaults and communities do not participate. Therefore high defaults, and inadequately trained staffs are common.
  
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One new program sponsored by the International Finance Corporation (IFC) and the Global Environment Facility (GEF) — the Photovoltaic Market Transformation Initiative (PVMTI) — will offer technical assistance and risk capital to the manufacturers, dealers and other private players who provide, install and maintain PV systems. The PVMTI will provide working capital loans on a competitive basis to PV businesses in the target countries of India, Morocco, and Kenya.
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The U.S. Export-Import Bank has provided both export credit insurance and working capital loans for U.S. PV businesses with overseas operations or distributors. In order to qualify for the loans, the firms must show, among other things, an order for a large number of units. For most PV companies, if a single large order were to materialize at all, it would come only after a substantial period of business development and historical sales. The Export-Import Bank’s loans are thus mainly applicable to already-established distribution companies. The Export-Import Bank also will provide intermediary loans (up to maximum principal amount of $5 million and maximum repayment term of 5 years) to fund intermediaries who loan to foreign buyers of U.S. capital and quasi-capital goods and related services. The application of intermediary loans to PV credit entities has not been explored.
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== Photovoltaic Market Transformation Initiative (PVMTI) ==
  
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The Overseas Private Investment Corporation (OPIC) provides U.S. companies seeking to invest overseas with investment services and political risk insurance, as well as direct loans and loan guarantees. Project financing is also provided. Participation by small and medium-sized businesses and corporations has recently been encouraged. In 1996, two OPIC-backed country funds invested in a PV dealership in India.  
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A new program called '''Photovoltaic Market Transformation Initiative (PVMTI)''' is financed by the [http://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/home International Finance Corporation (IFC)]and the [http://www.thegef.org/gef/ Global Environment Facility (GEF)]. It provides technical assistance and risk capital to the manufacturers, dealers and other private participants who are involved in providing, installing and maintaining of PV systems. The PVMTI will offer working capital loans on a competitive basis to PV businesses. The PVMTI will take place in [[India Energy Situation|India]], [[Morocco Energy Situation|Morocco]], and [[Kenya Energy Situation|Kenya]].
  
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Among grant-making agencies, both the U.S. Agency for International Development (AID) and the U.S. Trade and Development Agency provide funding for U.S. firms to carry out feasibility studies, consultancies, and other planning services related to major PV projects in developing countries. AID supports a number of training activities as well.  
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Both export credit insurance and working capital loans for international U.S. PV businesses has been offered by the [http://www.exim.gov/ U.S. Export-Import Bank]. As one of the various criteria to apply for the loans, the company has to prove an order for a large number of units. For most PV companies, if a single large order were to materialize at all, it would come only after a substantial period of business development and historical sales. Thus, the Export-Import Bank’s loans are mainly provided to already-established distribution companies. The Export-Import Bank also will offer intermediary loans (up to maximum principal amount of $5 million and maximum repayment term of 5 years). Intermediary loans are offered to fund intermediaries who loan to foreign buyers of U.S. capital and quasi-capital goods and related services. But so far, there has not taken place an exploration of the application of intermediary loans to PV credit institutions.
  
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Prospective sources of investment capital include the funds that would flow from implementation of the Clean Development Mechanism of the Climate Change Convention that promotes investment in clean-air technology in poorer countries, as well as from implementation of the Solar Development Corporation (SDS) being established by the World Bank and nonprofit foundations:
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► More Information on the [http://www.ifc.org/wps/wcm/connect/232b8480488554f7b4e4f66a6515bb18/PartTwo_CaseStudies2.pdf?MOD=AJPERES Photovoltaic Market Transformation Initiative (PVMTI)]
  
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*The Clean Development Mechanism (CDM) of the Climate Change Convention. Investments made pursuant to the CDM will not be limited to PV and could even bypass PV altogether. The many kinds of energy, transportation, agriculture, and forestry projects that will presumably be approved for carbon credits under the CDM will likely compete with each other to attract CDM investment. Many alternative carbon emission reduction activities are cheaper and/or easier to pursue than PV projects. Adding to the difficulty is the fact that carbon emissions reductions must be monitored and verified. This may be extremely difficult and expensive for remote, off-grid SHS projects.
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*The Solar Development Corporation (SDC) is intended to provide working capital and financing to PV dealers operating in developing countries. It is envisioned as a combination technical assistance and investment fund. Of its anticipated $50 million capitalization, $18 million will be in grant form from the GEF for business advisory services. The remaining $32 million will be investment capital used to capitalize the investment fund. Of the total, the World Bank, IFC, GEF, and nonprofit foundations have committed $30 million, so the SDC will have to raise another $20 million from private institutional investors, mainly for capitalizing the investment fund. That fund will invest on a quasi-commercial basis in local PV ventures and financial intermediaries. The business advisory services, funded by grant monies, will provide technical assistance to PV companies and charge them a small fee where appropriate.
 
  
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== Overseas Private Investment Corporation (OPIC) ==
  
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== Private Institutions That Provide Capital for PV  ==
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The '''Overseas Private Investment Corporation (OPIC)''' provides U.S. companies which want to invest internationally with investment services and political risk insurance. Project financing, direct loans and loan guarantees are also provided. Recently, participation by small and medium-sized businesses and corporations has been strongly encouraged.
  
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A few environmentally oriented private investors have provided small amounts of equity and some debt for PV developers. At least three private institutional investors — Gaia Capital (Germany), Swiss Reinsurance Company (Switzerland), and Triodos Bank (Netherlands) — have invested several million dollars in PV development companies.  
+
Grant-making agencies, such as the and the [http://www.ustda.gov/ U.S. Trade and Development Agency (USTDA)] support american companies in conducting feasibility studies, consultancies, and other planning services related to major PV projects in developing countries. Additionally, AID supports also training activities.
  
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*Gaia Capital and Swiss Reinsurance Company have provided equity capital to PV project developers operating in developing countries.
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Prospective sources of investment capital include the funds that would flow from implementation of the [[Clean Development Mechanism (CDM)|Clean Development Mechanism (CDM)]] of the Climate Change Convention. It promotes investments in environmentally friendly technology in developing countries.  
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*Triodos Bank has established a $3 million Solar Investment Fund, capitalized by the Dutch government and the Dutch power utility ENW. In Sri Lanka, the Solar Investment Fund is providing a loan to the private Renewable Energy Services Company of Asia (RESCO), which provides SHS loans to rural households. It is also providing a partial guarantee on the first 600 PV systems, thereby helping to attract local lenders to participate in the project. In Bolivia, the Solar Investment Fund is funding Co-Operativa Rural de Electrificación LTDA (CRE), an electric cooperative utility that hitherto has provided electricity through the national grid, but which is now aiming to provide solar energy for rural customers on a fee-for-service basis.
 
  
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Private institutional investments in PV such as those made by Gaia Capital, Swiss Reinsurance Company, and Triodos Bank are rare. From the PV industry’s perspective, the capital markets have largely bypassed PV.
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<u>Further sources include funds from implementations of the [http://www.thegef.org/gef/sites/thegef.org/files/gef_prj_docs/GEFProjectDocuments/Climate Change/Global - Solar Development Group (SDG)/Project Document for WP.pdf Solar Development Corporation (SDC)] which is set up by [http://www.worldbank.org/ the World Bank] and nonprofit foundations:</u>
  
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Domestic capital markets in developing countries can help or hurt the establishment of a viable SHS industry. Obviously, local capital is less essential if an PV entrepreneur can attract offshore capital, as has been the case in the Dominican Republic. Unfortunately, offshore capital is hard to access mainly because of the unacceptably high foreign exchange risk faced by capital providers.  
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*'''The Clean Development Mechanism (CDM) of the Climate Change Convention.''' CDM funds not only PV, contrary PV might be not the largest investment in future anymore. Carbon credits will probably be appliable for various forms of energy, transportation, agriculture, and forestry projects. Such projects will be in competition under the CDM to attract its funding. Many alternative carbon emission reduction activities are less costy and/or easier to conduct than PV projects. Described obstacles of PV projects increase even more, if taken into consideration that it is an obligation to monitor and verify carbon emissions reductions. This may be extremely difficult and expensive for far rural, off-grid SHS projects.
 +
*'''The Solar Development Corporation (SDC)''' aims to provide working capital and financing to PV dealers in developing countries. Its objective is to combine technical assistance and investment fund. Its predicted capitalization is about $50 million capitalization. This includes the provision of $18 million for business advisory services by the '''Global Environment Facility (GEF)'''. The difference of $32 million will be investment capital used to capitalize the investment fund. In sum the World Bank, IFC, GEF, and nonprofit foundations have provided $30 million. Thus, the task of the SDC is to raise another $20 million from private institutional investors. This sum is mainly for capitalizing the investment fund. That fund will invest on a quasi-commercial basis in local PV ventures and financial intermediaries. The business advisory services will provide technical assistance to PV companies for a small fee.
  
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In many of the developing countries that are the most likely hosts for SHS investments, there is virtually no venture capital or other long-term institutional risk capital financing available. And even if local capital markets are relatively developed, SHS investments often involve technologies and structures that are new to the country and are therefore considered exotic. Furthermore, SHS projects tend to be more capital intensive than their conventional counterparts, even if operating costs for SHS are lower. When compared with the diesel generation alternative, the capital costs seem out of proportion.  
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► More Information about the [http://www.opic.gov/ Overseas Private Investment Corporation (OPIC)]
  
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As noted above, the development of any SHS project, especially in a developing country, can take 2 to 5 years. At its inception, it requires equity capital investment for the working capital needed to penetrate the cash market. Then, debt can be used to finance perhaps a modest portion of working capital, and then a portfolio of consumer finance or lease paper. But to attract debt, the relatively small size of SHS projects is a problem. Unfortunately, classical international project financing approaches dictate the need for relatively large projects—with minimum financing requirements of, say, $15 million. Financiers may consider SHS entrepreneurs too small to obtain debt financing without strong outside (i.e., nonproject-related) collateral. When prudently financed, SHS projects are capitalized in rollout stages: first to exploit cash market; then to do a pilot program to research and test optimal financing vehicles, for say 200 units; then to get enough financing to carry one region of a country to reach cashflow breakeven level; then to replicate those programs in other regions, etc. There is no real reason for any particula r stage of financing to require more than $1 million.
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One private company seeking to finance PV projects by packaging them with other energy projects is the Energy Capital Holding Company (ECHCO) based in Washington, D.C. ECHCO has announced a plan to close on $1 billion worth of energy projects which will include some PV. In addition to packaging the projects to meet the application requirements of funders, ECHCO provides project sponsors with an integrated set of legal, engineering, insurance, fiduciary, and financial advisory services, as well as sourcing equity capital. At the time of this writing, ECHCO had not yet closed on its first package deal, so the viability of its approach, while promising, is still theoretical.<sup>10</sup>  
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== Private Institutions Providing Capital for Photovoltaic (PV)<br/> ==
  
−
<br>
+
A few environmentally oriented private investors have provided small amounts of equity and some debt for PV developers. At least three private institutional investors have financed PV development companies: Gaia Capital (Germany), Swiss Reinsurance Company (Switzerland), and Triodos Bank (Netherlands)
  
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<sup>10</sup> Michael Philips, “ECHCO to Close on $1 Billion Package, Including Renewables,” Clean Energy Finance, Volume 3, Number 1, Spring 1998 (Winrock International and Energy Ventures International), p. 3.  
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*''Gaia Capital ''and ''Swiss Reinsurance Company ''have provided equity capital to PV project developers in developing countries.
 +
*''Triodos Bank ''has established a $3 million Solar Investment Fund, capitalized by the Dutch government and the Dutch power utility ENW. In Sri Lanka, the Solar Investment Fund offers loans to the private '''Renewable Energy Services Company of Asia (RESCO)''', which supports rural households by providing loans for SHS. It offers also a partial guarantee on the first 600 PV systems in order to increase participation. In Bolivia, the Solar Investment Fund is funding Co-Operativa Rural de Electrificación LTDA (CRE). CRE is an electric cooperative utility that has provided electricity through the national grid in the past. Now it adapted its objective to provide solar energy for rural households on a fee-for-service basis.
  
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But presented private institutional investments in PV projects such as those made by Gaia Capital, Swiss Reinsurance Company, and Triodos Bank are not common. PV industry claims that PV was overcome by the capital markets.
  
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[[Solar Main Page|⇒ Back to Solar Section]]
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Development of a viable SHS market can be supported or slowed down by the Domestic capital markets in developing countries. If an PV entrepreneur can manage to gather offshore capital, local capital is less essential (as in the Dominican Republic). But offshore capital is hard to attract because capital providers are faced with high foreign exchange risk.
 +
 
 +
Developing countries which are considered as hosts for SHS investments, do not have venture capital or other long-term institutional risk capital financing at their disposal. Even in developed local capital markets SHS are perceived as new, exotic technology. Additionally, on the average SHS projects are more expensive compared to common products, altough operating costs for SHS are lower. Capital costs for the diesel generation alternative are unofficially.
 +
 
 +
<u>The development of any SHS project, especially in developing countries, are long and can take 2 to 5 years:</u>
 +
 
 +
At its inception, equity capital investment is needed for the working capital to penetrate the cash market. In the next step, debt is required to finance for example a modest amount of working capital, and as next step a portfolio of consumer finance or lease paper. Attracting debt the relatively small size of SHS projects is an obstacle, because international project financing organizations usually support only large projects with an amount of at least $15 million. Therefore, new SHS companies might be evaluated as being not large enough to attract debt financing without outside collateral. SHS projects are often capitalized in rollout stages: first to exploit cash market; next conducting pilot studies to find out optimal financing models; afterwards attracting finance in order to get one region to reach cashflow breakeven level; finally the replication of those programs in other regions, and so on. If financed prudently in this way no reasons exist for any of the described stages of financing to need more than $1 million.
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The '''Energy Capital Holding Company (ECHCO)''' is interested in financing PV projects in combination with other energy projects in order to fulfill the demands of financing entities. ECHCO aims to accomplish energy projects, including some PV, of an amount of $1 billion. Furthermore, ECHCO supports project sponsors with a combination of legal, engineering, insurance, fiduciary and financial advisory services, as well as sourcing equity capital. When this report was published, the first deal was not yet finished. Thus, "the viability of its approach, while promising, is still theoretical."<ref name="Michael Philips, “ECHCO to Close on $1 Billion Package, Including Renewables,” Clean Energy Finance, Volume 3, Number 1, Spring 1998 (Winrock International and Energy Ventures International), p. 3."> Michael Philips, “ECHCO to Close on $1 Billion Package, Including Renewables,” Clean Energy Finance, Volume 3, Number 1, Spring 1998 (Winrock International and Energy Ventures International), p. 3.</ref>
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= Further Information =
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*[[Portal:Financing and Funding|Financing and Funding Portal on energypedia]]
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*[[Microfinance#Microfinance for RE Projects|Microfinance for Renewable Energy]]
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*[[Import of Energy Products|Import of Energy Products]]
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*[[Microfinance Institutions - Financing Renewable Energy|Microfinance Institutions- Financing Renewable Energy]]
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*[[Portal:Solar|Solar Portal on energypedia]]<br/>
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*[[Examples_of_Legal_Texts_and_Regulations_to_Lift_Import_Duties_for_PV_Products|Examples of Legal Texts and Regulations to Lift Import Duties for PV Products]]<br/>
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<br/>
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= References<br/> =
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<references />
  
 
[[Category:Solar]]
 
[[Category:Solar]]
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[[Category:Financing_and_Funding]]
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[[Category:Financing_Solar]]

Latest revision as of 09:44, 1 August 2018

►Back to Solar Portal

Overview

Recently, multilateral development banks (MDBs) and bilateral agencies provided the majority of the investment capital for Photovoltaic (PV) projects in developing countries. This was accomplished by host governments. There is only small contribution of the private sector in PV projects. That might be due to private institutional investors' perception of PV projects as being too small and highly risky[1].


Bilateral and Multilateral Institutions that Provide Capital for Photovoltaic (PV)

Institutions, such as MDBs as well as bilateral agencies in host countries, have contributed the major part of financial support for photovoltaic (PV) projects. Especially bilateral institutions have shown themselves responsible for training of PV system installers, designing project staff and for administration of PV programs, and PV equipment for demonstration projects. Bilateral and multilateral institutions aim for financial sustainability of PV projects, for example providing seed funding to establish a revolving fund. However, the approach to establish revolving funds is often not successful. As a consequence the revolving funds become “dissolving” funds: they fail to charge interests that cover normal level of defaults and communities do not participate. Therefore high defaults, and inadequately trained staffs are common.


Photovoltaic Market Transformation Initiative (PVMTI)

A new program called Photovoltaic Market Transformation Initiative (PVMTI) is financed by the International Finance Corporation (IFC)and the Global Environment Facility (GEF). It provides technical assistance and risk capital to the manufacturers, dealers and other private participants who are involved in providing, installing and maintaining of PV systems. The PVMTI will offer working capital loans on a competitive basis to PV businesses. The PVMTI will take place in India, Morocco, and Kenya.

Both export credit insurance and working capital loans for international U.S. PV businesses has been offered by the U.S. Export-Import Bank. As one of the various criteria to apply for the loans, the company has to prove an order for a large number of units. For most PV companies, if a single large order were to materialize at all, it would come only after a substantial period of business development and historical sales. Thus, the Export-Import Bank’s loans are mainly provided to already-established distribution companies. The Export-Import Bank also will offer intermediary loans (up to maximum principal amount of $5 million and maximum repayment term of 5 years). Intermediary loans are offered to fund intermediaries who loan to foreign buyers of U.S. capital and quasi-capital goods and related services. But so far, there has not taken place an exploration of the application of intermediary loans to PV credit institutions.

► More Information on the Photovoltaic Market Transformation Initiative (PVMTI)


Overseas Private Investment Corporation (OPIC)

The Overseas Private Investment Corporation (OPIC) provides U.S. companies which want to invest internationally with investment services and political risk insurance. Project financing, direct loans and loan guarantees are also provided. Recently, participation by small and medium-sized businesses and corporations has been strongly encouraged.

Grant-making agencies, such as the and the U.S. Trade and Development Agency (USTDA) support american companies in conducting feasibility studies, consultancies, and other planning services related to major PV projects in developing countries. Additionally, AID supports also training activities.

Prospective sources of investment capital include the funds that would flow from implementation of the Clean Development Mechanism (CDM) of the Climate Change Convention. It promotes investments in environmentally friendly technology in developing countries.

Further sources include funds from implementations of the Change/Global - Solar Development Group (SDG)/Project Document for WP.pdf Solar Development Corporation (SDC) which is set up by the World Bank and nonprofit foundations:

  • The Clean Development Mechanism (CDM) of the Climate Change Convention. CDM funds not only PV, contrary PV might be not the largest investment in future anymore. Carbon credits will probably be appliable for various forms of energy, transportation, agriculture, and forestry projects. Such projects will be in competition under the CDM to attract its funding. Many alternative carbon emission reduction activities are less costy and/or easier to conduct than PV projects. Described obstacles of PV projects increase even more, if taken into consideration that it is an obligation to monitor and verify carbon emissions reductions. This may be extremely difficult and expensive for far rural, off-grid SHS projects.
  • The Solar Development Corporation (SDC) aims to provide working capital and financing to PV dealers in developing countries. Its objective is to combine technical assistance and investment fund. Its predicted capitalization is about $50 million capitalization. This includes the provision of $18 million for business advisory services by the Global Environment Facility (GEF). The difference of $32 million will be investment capital used to capitalize the investment fund. In sum the World Bank, IFC, GEF, and nonprofit foundations have provided $30 million. Thus, the task of the SDC is to raise another $20 million from private institutional investors. This sum is mainly for capitalizing the investment fund. That fund will invest on a quasi-commercial basis in local PV ventures and financial intermediaries. The business advisory services will provide technical assistance to PV companies for a small fee.

► More Information about the Overseas Private Investment Corporation (OPIC)


Private Institutions Providing Capital for Photovoltaic (PV)

A few environmentally oriented private investors have provided small amounts of equity and some debt for PV developers. At least three private institutional investors have financed PV development companies: Gaia Capital (Germany), Swiss Reinsurance Company (Switzerland), and Triodos Bank (Netherlands)

  • Gaia Capital and Swiss Reinsurance Company have provided equity capital to PV project developers in developing countries.
  • Triodos Bank has established a $3 million Solar Investment Fund, capitalized by the Dutch government and the Dutch power utility ENW. In Sri Lanka, the Solar Investment Fund offers loans to the private Renewable Energy Services Company of Asia (RESCO), which supports rural households by providing loans for SHS. It offers also a partial guarantee on the first 600 PV systems in order to increase participation. In Bolivia, the Solar Investment Fund is funding Co-Operativa Rural de Electrificación LTDA (CRE). CRE is an electric cooperative utility that has provided electricity through the national grid in the past. Now it adapted its objective to provide solar energy for rural households on a fee-for-service basis.


But presented private institutional investments in PV projects such as those made by Gaia Capital, Swiss Reinsurance Company, and Triodos Bank are not common. PV industry claims that PV was overcome by the capital markets.

Development of a viable SHS market can be supported or slowed down by the Domestic capital markets in developing countries. If an PV entrepreneur can manage to gather offshore capital, local capital is less essential (as in the Dominican Republic). But offshore capital is hard to attract because capital providers are faced with high foreign exchange risk.

Developing countries which are considered as hosts for SHS investments, do not have venture capital or other long-term institutional risk capital financing at their disposal. Even in developed local capital markets SHS are perceived as new, exotic technology. Additionally, on the average SHS projects are more expensive compared to common products, altough operating costs for SHS are lower. Capital costs for the diesel generation alternative are unofficially.

The development of any SHS project, especially in developing countries, are long and can take 2 to 5 years:

At its inception, equity capital investment is needed for the working capital to penetrate the cash market. In the next step, debt is required to finance for example a modest amount of working capital, and as next step a portfolio of consumer finance or lease paper. Attracting debt the relatively small size of SHS projects is an obstacle, because international project financing organizations usually support only large projects with an amount of at least $15 million. Therefore, new SHS companies might be evaluated as being not large enough to attract debt financing without outside collateral. SHS projects are often capitalized in rollout stages: first to exploit cash market; next conducting pilot studies to find out optimal financing models; afterwards attracting finance in order to get one region to reach cashflow breakeven level; finally the replication of those programs in other regions, and so on. If financed prudently in this way no reasons exist for any of the described stages of financing to need more than $1 million.


The Energy Capital Holding Company (ECHCO) is interested in financing PV projects in combination with other energy projects in order to fulfill the demands of financing entities. ECHCO aims to accomplish energy projects, including some PV, of an amount of $1 billion. Furthermore, ECHCO supports project sponsors with a combination of legal, engineering, insurance, fiduciary and financial advisory services, as well as sourcing equity capital. When this report was published, the first deal was not yet finished. Thus, "the viability of its approach, while promising, is still theoretical."[2]


Further Information


References

  1. ↑ Philips, Michael; Browne, Brooks, H. Accelerating PV Markets in Developing Countries: http://www.repp.org/repp_pubs/articles/pv/7/7.html
  2. ↑ Michael Philips, “ECHCO to Close on $1 Billion Package, Including Renewables,” Clean Energy Finance, Volume 3, Number 1, Spring 1998 (Winrock International and Energy Ventures International), p. 3.
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