Download Präsentationstitel max. zweizeilig

Support Mechanisms for sustainable small hydropower
plants, case of Austria
Christian Oberleitner
Vienna, November 2014
1
THE SPEZIALIST FOR PUBLIC CONSULTING
THE SPEZIALIST FOR PUBLIC CONSULTING
Table of Contents
 Profile of KPC
 Austrian Experiences with different Financial Supporting Schemes
 Project cycle
 Conclusion
2
THE SPEZIALIST FOR PUBLIC CONSULTING
Table of Contents
 Profile of KPC
 Austrian Experiences with different Financial Supporting Schemes
 Project Cycle
 Conclusion
3
THE SPEZIALIST FOR PUBLIC CONSULTING
Fields of Business
 Support scheme and programme management
– Environmental support under Environmental Support Act (municipal water management,
in-plant environmental protection measures, rehabilitation of contaminated sites)
– Austrian JI/CDM Programme
– Climate and Energy Fund
– Klima:aktiv mobil support programme
– ERDF/EAFRD management in seven Austrian provinces
– Management of provincial support programmes since 2011
Salzburg Climate and Environment Pact
Economic support programmes of the Province of Tyrol
Photovoltaics for private residential buildings in Vienna
– Waste Avoidance Initiative
– Eco-Electricity Investment Support (OeMAG)
 National and international consulting
for the Environment & Energy segment
 Climate Austria - Voluntary Carbon Offsetting
 Management of the Environmental and Water Management Fund (UWF)
4
THE SPEZIALIST FOR PUBLIC CONSULTING
National and International Consulting
 Examples of international consulting projects
– EU
– EBRD
– GIZ
– OECD
– World Bank
– EIB
– ADA
study on engaging the private sector in development and extending the
blending activities of the EU
Consultancy Services to support the implementation of the Residential
Window (RuSEFF-Residential) under the Russian Sustainable Energy &
Carbon Finance Facility
Support to municipalities in Moldova for improving municipal service
provision
Study on improving water management and climate change adaptation in
the water sector in Moldova
Support in the set-up of a Homeowners Association Resource Center in
Ukraine
EIB - Consultancy services in support of EU Programmes on energy efficiency
Policy advice for and support of water and waste-water projects within the
framework of Austria‘s cooperation with CEE
 Examples of national consulting projects
– BMLFUW*
Technical support for NER300 programme
Technical, economic and financial consulting according
to ISO 9001:2008 Quality Management Standard
* Federal Ministry of Agriculture, Forestry, Environment and Water Management
5
THE SPEZIALIST FOR PUBLIC CONSULTING
Table of Contents
 Profile of KPC
 Austrian Experiences with different Financial Supporting Schemes
 Project Cycle
 Conclusion
6
THE SPEZIALIST FOR PUBLIC CONSULTING
Stakeholders usually have different approach –
Involved beneficiaries & Target groups
Investor
Financing Institute
Government
End user
• Making profit
• Low risk
• Access to financing
• Stable framework conditions
• Support with project development
• Secure cash flow
• Promising business model
• Creditworthiness of client
• Reliable long term conditions
• Government
• Accelerate development of SSHP
• Low cost support scheme
• Self running market
• Access to energy for All
• Access to energy
• Secure supply
• Low energy costs
7
THE SPEZIALIST FOR PUBLIC CONSULTING
Austria tried different supporting schemes
Tradable green certificates
Program failed und has been stopped after 9 month of operation
Feed-in-tariff system
Low response due to high market prices
Investment subsidies
In place since 2010, now with option for feed in tarif
8
THE SPEZIALIST FOR PUBLIC CONSULTING
FIT tariff not always preferable for SSHP operators
FIT has been introduced in 2003
9
THE SPEZIALIST FOR PUBLIC CONSULTING
Investment subsidies to boost SSHP development
•
Available only for SSHP up to 10 MW
•
Different level of support (400 – 1.500 €/kW), depending on capacity
•
Estimated economic performance is considered
•
Cap on 30% of eligible costs
•
For new and for up-grading of existing SSHP
•
16 Million € / annum available
 BUT: Market asked for FIT
10
THE SPEZIALIST FOR PUBLIC CONSULTING
12
10
8
€c
6
4
2
0
0.50
1.00
2.50
5.00
7.50
>7.5
11
THE SPEZIALIST FOR PUBLIC CONSULTING
Findings
•
There is no „one-and-only“ subsidy scheme available
•
Design parameter are important to enable successful development
•
Stable subsidy scheme is mandatory to attract investors
•
Administration of subsidy scheme must be designed to capacity of market players
•
Subsidy scheme as only instrument will not boost the market
•
Flexibility is required to response market needs
12
THE SPEZIALIST FOR PUBLIC CONSULTING
Table of Contents
 Profile of KPC
 Austrian Experiences with different Financial Supporting Schemes
 Project cycle
 Conclusion
13
THE SPEZIALIST FOR PUBLIC CONSULTING
Project cycle
Application
Pre-assessment
•eligibility
•Technical check
Financial audit
Implementation
•Eligibility of costs
•Economic assessment
On site verification
Disbursement of funds
14
THE SPEZIALIST FOR PUBLIC CONSULTING
Table of Contents
 Profile of KPC
 General purpose of Financial Support Schemes
 Austrian Experiences with different Financial Supporting Schemes
 Essential Design Parameters
 Conclusion & Findings
15
THE SPEZIALIST FOR PUBLIC CONSULTING
Investment costs per kW installed capacity
Source: Oe-mag
16
THE SPEZIALIST FOR PUBLIC CONSULTING
Support level per kW installed capacity
Source: oe-mag
17
THE SPEZIALIST FOR PUBLIC CONSULTING
Financial support needs assistance
 Nominate reliable and independent body
 Raise awareness for subsidy scheme
 Motivate investors
 Provide additional support such as technical assistance
 Set minimum quality criteria
 Ensure stable distribution networks
18
THE SPEZIALIST FOR PUBLIC CONSULTING
Detail design needs to consider at least
the following:
 Enable upfront financing
 Enable different options for project developers
 Secure long-time financing of subsidy scheme
 Customer friendly verification & fast decision making
 Blending of different models (Guarantees, soft loans, investment subsidies, FIT, tax
incentives, risk sharing models …) is recommended
 Consider impact on industry, households and infrastructure
19
THE SPEZIALIST FOR PUBLIC CONSULTING
General requirements on a supporting scheme are:
 Fair, clear and transparent design, public available
 Simple to understand and easy to administrate („One-stop-shop“)
 Enable flexibility but stable framework conditions
 Clear technical standards and legal documents
 Tailored to needs of market -> more than one option possible
20
THE SPEZIALIST FOR PUBLIC CONSULTING
How to design a financial support scheme
 Set clear and achievable goals
 Define target groups that needs to be approached
 Design different support models tailored to the market needs
 Secure sufficient financing for providing financial support
 Consider in advance additional activities needed
 Liaise with neighboring countries to run international programs
21
THE SPEZIALIST FOR PUBLIC CONSULTING
Apart from financing following shall be considered
 Nominate intermediate body
 Set clear, simple, fair and transparent procedures
 Develop costumer friendly administration of support scheme
 Monitor and verify success of support scheme
 Adopt scheme when needed carefully
 Make use of technical assistance in designing and implementing supporting scheme
22
Kommunalkredit Public Consulting GmbH
Türkenstraße 9, 1092 Wien
Tel +43 1 31631-222
Fax +43 1 31631-104
[email protected]
www.publicconsulting.at
23
THE SPEZIALIST FOR PUBLIC CONSULTING