Welcome (Mark Radka, UNEP)

Session 1: Large Scale RE Technologies
John MacLean

Moderator: Dirk Kohler, CarbonRE

Working group 1 is focused on grid-connected renewable energy plants in developing countries:

• Identifying how key risks are currently mitigated through financial risk management instruments and structures
  
• Assessing where existing instruments can be replicated/adapted to other countries
  
• Understanding the practicality and constraints of developing new instruments and structures, and where public participation might be required.
  

A modelling study was undertaken by Marsh Ltd., the results of which will form the basis for this session's discussion. The study examined two typical projects: one a 100MW wind farm in India ,and the second a 50MW biomass plant in China. The following three-step process was applied:

1. Using rating agency methodologies, modeling and analysis of the balance sheet, income statement and cash flows for each project
   -In the average case
   -For a large number of scenarios (Monte Carlo simulations)
   -For specific catastrophic cases (stress tests)
   
   
2. Identification of available/possible risk management instruments
   -Prioritizing the need for such instruments through a web survey
   -Estimating costs of each instrument based on in-country quotes
   
   
3. Analysis of the impact of RM instruments on project economics
   -Reduction in the volatility of project financials
   -Selection of optimal combinations of RM instruments

Presentation of Study results (PDF - 1 MB), Warren Diogo

Session 2: Small Scale RE Technologies
Moderator: Judy Siegel, GVEP/Energy Security Group
Presentation (PDF - 75 KB) by Judy Siegel

Presentation of Study results (PDF - 83 KB) by John MacLean

Working Group 2 is focused on small scale renewables. The group previously identified five mechanisms for study. These included:
-End-User Credit Enhancement Instruments
-Developer/Sponsor Partial Credit Guarantee Instruments
-Contingent Grants
-Small Scale Project Preparation Mechanisms
-Micro-insurance

A study was commissioned of independent consultant John MacLean to analyze these mechanisms. Specifically, the study remit was to:
1. Inventory on-going/planned uses of the five mechanisms
2. Conduct in-depth assessment of which mechanism works at which stage of renewable energy market development
3. Identify outstanding areas where support is warranted to reduce/eliminate financial risks for small scale renewable projects
4. Conduct preliminary design of these mechanism(s).
5. Examine practicality and constraints of such instruments.

Session 3: Geothermal Technologies
Moderator: Helmut Schreiber / Kyoichi Shimazaki

Presentation of Study results (PDF - 224 KB),Jim Combs

Working Group 3 is focused on geothermal plants with efforts focused on reviewing the instruments currently available from the public and private sectors and providing an assessment for further development of such instruments.

A study was commissioned of independent consultant James Combs with the specific remit to:
1. Identify, define and characterize the various risks associated with geothermal projects for each phase from testing through to operations. Assess the magnitude of each risk and their impact on the project's financials.
2. Study reservoir-related risks, conducting a survey of the geothermal risk management and mitigation instruments which have been utilized in several countries including France, Germany, Iceland, Italy, U.S. and Africa.
3. Assess each instrument, if necessary through interviews of the providers, and draw lessons and recommendations for further development based on both public and private sector resources.

WG 3 Final Report (PDF - 1,2 MB)

Session 5: Feasibility Studies

Moderator: Virginia Sonntag-O'Brien, BASE

• General guidelines for feasibility studies (WG Members)
• Q&A
  

Lunch

Meeting closure (UNEP)