MEDREP Finance

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MEDREP Finance

• Mediterranean Renewable Energy Program
• MEDREP
• Jan Kappen
• Project Manager, Energy Finance
• UNEP-DTIE
• www.uneptie.org/energy/finance
• jan.kappen_at_unep.fr

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MEDREP Finance

• MEDREP Finance A WSSD Type II Initiative
• Sponsored by the Italian Ministry
  for Environment and Territory
  for the
• Mediterranean Basin

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MEDREP Finance - Key Objectives

• OBJECTIVES
• Investigate different approaches for positively
  influencing financial flows to RE projects
• Structure support mechanisms that help lenders
  and investors scale up financing

• OUTPUTS
• Assessment of barriers to RE financing
• Opportunities for development of RE projects in
  the 3 countries
• Solar Water Heating Loan and Leasing Facilities
  to facilitate access to credit in Tunisia and
  Morocco
• Transaction Support Facility for the entire region

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Solar Water Heating (SWH) Loan Facility in
Tunisia What it is

• The SWH Loan Facility is a finance mechanism
• to create credit facilities using the state
  utility,
• STEG as a channel for recovering the loan
  payments
• through the utility bill
• to help local banks build loan portfolios in RE
  area
• by implementing an interest rate subsidy
• to provide to the end user a capital cost
  subsidy to
• partially reduce the SWH financing (Tunisian
• government has passed a law to provide 20
  subsidy)

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Solar Water Heating Loan Facility in Tunisia -
How it works

• UNEP and ANME establish a 2 million US Facility
• STEG will promote the use of SWH by recovering
  the loan via a STEG customers utility bill
• Banks provide loans to the end users via the SWH
  suppliers by lowering the interest rates by 5-6
  points because the risk of nonpayment is almost
  non-existent
• The end user repay his loan via the STEG utility
  bill over 5 years to make the monthly payments
  equal to other conventional energy expenditures
• UNEP provides an Interest Rate Subsidy decreasing
  over time

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Solar Water Heating Loan Facility in Tunisia -
What it does

• Buy CHEAP and Pay SLOWLY
• SWH Size 200 liters 300 liters
• Net Cost of SWH USD 550 USD 700
• Monthly payment (5 yrs) USD 9 USD 11.50
• A Quick and Simplified Procedure
• Customer contacts the SWH supplier
• Customer fills out the application form at the
  SWH supplier office, presents his latest STEG
  bill and ID
• The installation is immediate once the
  application form and engagement form are signed

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Solar Water Heating Loan Facility in Tunisia -
Objectives

• The objectives of this project
• In 2005, installation of 29 000 m², equivalent to
  8,800 households
• By 2011, 222 000 m² will be installed
• Over 2005-2011, the Tunisian government would
  have transferred approx. 15 millions USD from LPG
  subsidy to a solar subsidy
• The development of the SWH market will become
  sustainable

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MEDREP Finance

• Thank you for your attention