Adam de Sola Pool

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• Adam de Sola Pool
• Green Week 2005
• www.eip.biz

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Summary

• Financing Renewable Energy in Central Europe
• Illustrative statistics
• Does financing exist?
• Why it does not work most of the time
• What can be done to make financing available
• What EIP II invests in

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Illustrative Statistics
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EC- BREC Polish Wind Energy 2003
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Does Financing Exist?

• Yes it does!
• See www.sef-directory.net for a long list
• New Energy Finance Briefing says
• 75 EU clean energy start ups funded 01-04
• Over 100 VC funds focused on sector
• In CE AIB-WBK, Dexia FE, EIP EIP II,
  Enterprise, IO, MFB, PEM, 3TS many others
• Major bank players Fortis, HVB, Citi, etc. are
  present in CE

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So Far Not A Success Story

• Why
• Risk adjusted returns are less than in other
  markets
• Risks Policy needs consistency and development
• Risks Precedents limited so lack of confidence
• Returns Not better than elsewhere in EU

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So Far Not A Success Story - 2

• Returns Up front costs can be significant thus
  reducing expected returns
• EIB / EBRD not structured to serve the generally
  small local market opportunities
• Limited local concessionary funding available

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What Can Be Done?

• EC Patient Capital Initiative
• UNEP SEFI programs getting started
• EC Regulatory capacity building
• Raise energy prices eliminate conventional fuel
  subsidies
• Donor financing of REEEP and other initiatives
• Gov / NGO pressure on EIB / EBRD to become
  situation specific (non-commercial)

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What Does EIP II Invest In?

• Projects with greater than 20 IRR
• Projects just before construction
• Not at an early stage
• Projects needing up to Euro 1 mm from us
• Projects that meet sustainability criteria
• EIA must be well done with public participation
• Generally we find hydro refurbishment, biomass
  boiler conversions landfill gas are core
  prospects
• Wind geothermal are too big for EIP II

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• Adam de Sola Pool
• Tel [phone]
• www.eip.biz
• pool_at_eip.com.pl