The Caribbean Renewable Energy Development Programme, CREDP

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The Caribbean Renewable Energy Development
Programme, CREDP

• Roland Clarke, Ph. D.
• Project Manager, CREDP
• Tel [phone] thru 9 ext. 2631
  rclarke_at_caricom.org
• http//www.caricom.org/jsp/projects/credp.jsp
• 16 May 2006

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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, DVDs

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COUNTRIES

• The Bahamas
• Barbados
• Belize
• Cuba
• Dominica
• Grenada
• Guyana

• Jamaica
• St. Kitts Nevis
• Saint Lucia
• St. Vincent The Grenadines
• Trinidad Tobago
• Suriname

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UNDP/GEF GTZ Financing (US)

• Project funded by the GEF/UNDP and the German
  GTZ.
• TOTAL 6.646 MM
• UNDP/GEF Project Phase II 4.076 MM
• PDF B Phase 1 Part II 0.350 MM
• Sub-total GEF 4.426 MM
• GTZ 2.220 MM

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CREDP Eligibility Criteria

• General
• Electricity from wind, hydro, solar PV,
  geothermal, biomass. Also solar water heating
• RD 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

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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

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CREDP Economic Selection Criteria

• No net increase in GHG emissions
• BCR gt 1 or NPV gt 0 or DSCR gt 1.5
• After Tax ROI Equity gt 15
• Must have net foreign exchange savings
• Government letter of support (project specific)

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CREDPs 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

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CREDPs 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

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Policies
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Policies
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Policies
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Policies
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Policies
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Policies
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Utility Survey Responses - 1
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Utility Survey Responses 1 contd
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Utility Survey Responses - 2
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Utility Survey 2 contd
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Template documents available

• Purchased Power Agreement, PPA
• Interconnection Agreement
• Equipment, Procurement Construction (EPC)
  Contract
• OM Contract/Specifications

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Small Grants available for Pre-Feasibility Studies

• Typically about US15,000 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

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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

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Studies funded by CRETAF

• Detailed site specific resource assessments
• Grid integration studies
• Development of PPAs
• Environmental impact assessments
• Detailed Feasibility Studies

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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

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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 US15,000
  for RETScreen studies
• Give us 10 weeks advanced notice

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View our Web Site

• http//www.caricom.org/jsp/projects/credp.jsp
• Thank you

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