This slide discusses policy issues and perspectives

1. Clean Energy
Financing
Partnerships:
Policy Issues and
Perspectives
By
Prof. (Dr.) Saurabh Agarwal
Vice Chairman and Professor
of Finance
Indian Institute of Finance

2. Clean Energy Financing
Partnership Funds (CEFPF)
The CEFPF was established by Asian
Development Bank
 Clean Energy Fund (CEF),
1. technical assistance (TA),
2. grant components of investment projects
 Clean energy trust funds, a series of bilateral
funds

5. What are the financing
opportunities?
 Project-specific financing
(i.e., grants, concessional loans, or guarantees)
 Knowledge provision and exchange; and

6. What kind of activities are
eligible?
 biomass, biofuel, biogas
 rural electrification and energy access
 distributed energy production
 waste-to-energy projects
 demand-side management projects
 energy-efficient district heating, transport, street lighting, buildings and
end-use facilities
 clean energy power generation, transmission, and distribution
 manufacturing facilities of clean energy system components, high
efficiency appliances and industrial equipment's
 energy service companies development
 carbon capture and storage
 integrated gasification combined cycle or IGCC, supercritical and ultra-
supercritical steam technologies

7. Q: How do you turn a profit with a
wind turbine?
A: Chop it up and sell it for parts.

8. Miles are longer than
Kilometers.
Save gas. Go on your next
trip in kilometers.

9. Case 1:
Renewable Energy for Nationwide
Telecommunications Project
 Providing $1 million for a capacity development technical
assistance (CDTA)
 Renewable energy technologies for telecom towers
 Reduce reliance on expensive diesel fuel, reduced carbon
emissions, increased energy access and developed
human resource capacities
 install 1,500 telecom towers with a total of 4.5 megawatt
(MW) renewable energy capacity, with approximately
5,400 megawatt-hour of energy generation per year, and
are expected to reduce 10,000 tons of carbon dioxide
emissions per year
 Myanmar

10. Case 2:
Climate Friendly Agribusiness
Value Chains Development
 Providing $1 million to a project preparatory
technical assistance (PPTA)
 Feasibility of a pro-poor, climate-resilient and
low carbon agribusiness value chain
 increasing the use of renewable and
bioenergy by agribusinesses and rural
households
 Greater Mekong Subregion (GMS)

11. Case 3:
Adjaristsqali Hydropower Project
 $15 million to co-finance the project that will construct, operate
and maintain two run-of-the-river hydropower plants with
combined capacity of 185 megawatts in southwest Georgia.
 Expected to generate 450 gigawatt-hour per year of clean
energy, predominantly for export to Turkey
 expected reduction of approximately 200,000 tons of carbon
dioxide per year
 CEFPF support is expected to leverage $75.0 million of ADB’s
clean energy investment, $138.0 million and $203.5 million of
private and non-private sector investment
 Cross-border energy trading and improving utilization of
Georgia’s hydro resources
 Georgia

12. Case 4: Promoting Carbon Capture and
Storage in the People's Republic of China
and Indonesia
 $1.8 million to finance a research and development
technical assistance (RDTA) that will establish the
institutional capacity on carbon capture and storage
(CCS)
 The RDTA will address this barriers by:
(i) establishing three Centers of
Excellence
(ii) promoting knowledge-sharing through
conferences, workshops, dialogues, study
visits and other forms of regional cooperation

13. Funds to India
 2007 57.5 Million US $
 2008 425 Million US $
 2009 260 Million US $
 2010 3,194 Million US$
All projects related to Clean Energy
What about Agriculture, Transport, Water
Supply, Sanitation and Waste Management?

14. Case 5: Azure Power
 Inderpreet S Wadhwa, founder & chief
executive officer of Azure Power, a solar
photovoltaic company
 Azure commissioned the first phase (1 Mw) of
its 2 Mw solar PV plant in Awan, Amritsar and
has begun to sell solar power to the Punjab
State Electricity Board.
 That makes him the first entrepreneur to sell
solar power commercially in India.

15. Case 5: Azure Power cont.
 Punjab government is offering a peak rate at
Rs 8.93 per Kwh (kilowatt-hour) lower than
costs (Rs 12-20 per kwh)
 Agreement for 25 years and cost would be
recovered 2020
 Wadhwa claims that his power plant is cost-
effective -- the 1 Mw plant costs Rs 17-19
crore (Rs 170-190 million).

16.  Azure Power received initial venture capital funding
from Helion Ventures (an India-focused venture fund)
and Foundation Capital (a global investment fund
which focuses on start-ups)
 To finance these plants, he has two more investors
lined up. One is the International Finance
Corporation, the commercial lending arm of the World
Bank, which is planning to make a quasi-equity
investment of $10 million (around Rs 46 crore -- Rs 460
million) in upcoming solar power projects in Punjab and
Gujarat.
Case 5: Azure Power cont.

17.  Azure Power's uniqueness lies in the fact that
the company focusses on solar energy
 The favorable policy of the MNRE and the
government's National Solar Mission
Case 5: Azure Power cont.