energy efficiency financing: thai-german...
TRANSCRIPT
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Kasikornbank Public Co., Ltd
Ittiporn Intravisit
May 7, 2018
Energy Efficiency Financing: Thai-German Conference
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Principle of Energy Efficiency Financing
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Clear objective of investment
Self financing source of repayment
Strengthen borrower’s long term cash flow
Enhance borrower’s competitiveness
Energy Efficiency Financing – Key Points
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KBank ESCO or Suppliers
Borrower/
Investor
Energy Performance Contract
(Energy Saving Guaranty)
100% financing of
total investment
Self-Financing Project
Energy Efficiency Financing Model(1/2)
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Base
consumption
Guaranty Portion
1.Saving Shortfall 2 Saving Surplus
New
Ene
rgy
Cos
t
Actual Result
Surplus (sharing as agreed)
ESCO guarantee = 30%
100%
5% ESCO Compensate Shortfall of 5.0%
5%
Energy Efficiency Financing Model(2/2)
New
Ene
rgy
Cos
t
New
Ene
rgy
Cos
t
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New Energy Cost
Base Energy Cost
100%
30%
70%
> 5 Years onward
Saving from
Energy Cost
Year 1 – Year 5
70%
25% (Loan Repayment)
5% Additional Cash Flow Additional
Cash flow
Cash Flow Profile (Pre and Post Project)
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Project Evaluation
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Project Specific
Evaluation Process
Borrower Specific
EE Financing Project Evaluation
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Esco evaluation
- Track record in business and knowhow
- Certification / Reference
- Business reputation
- Financial Strength
Project payback analysis
Energy Performance Contract
- Level of details/Standard of contract
- Fairness and clarity
Project Specific Evaluation
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Industry Condition
General Credit and financial condition
Cash Flow and Debt Service burden
Collateral Structure
Borrower Specific Evaluation
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Opportunities and Challenges
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Government Support/Other international
agencies through low interest financing
Established ESCO’s infrastructure
Growing awareness of energy efficiency and
renewable energy
Lower implementation and equipment cost/
faster pay back
Opportunities of EE Financing
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Deal acquisition Project Evaluation
• Low energy price environment • Qualification of ESCO
• End-user confidence and understanding
• Nature of assets related to project
• Business priority/disruption • Understanding of Technical aspects
• Size of investment • Deal size and cost of due diligence
• Some EE measures has become commodity
• Collateral structure issue
Challenges of EE Financing
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Special Financing Package
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Cooperation with French Development Agencies (AFD)
Focus on Commercial Building Sector
Provide Term financing at competitive rate
Up to 10 years financing term
Financing limit of THB 200/project
Provide Free technical advisory services
Green Building Program
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Cooperation with DeDe in the form of soft loan
Cover any type of building (Industrial/Commercial)
Up to 5 years term loan
Up to THB 50 million/project
Interest rate at 3.5% p.a. (fixed)
Project pre-screening by DeDe
ESCO is not compulsory.
Energy Revolving Fund
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Khun Ittiporn Intravisit [email protected] Tel. 02-470-6991 Mobile. 081-655-1116
KBank Contact Person
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