! RENEWABLE ENERGY ! INVESTMENT FORUM FOR FIJI ! 2015 ! ! Post Event Report ! 17th June 2015 ! ! ! ! ! ! ! ! ! ! ! ! !"#$%&'()*'+%,-)'%.*"/%0*1% 234%56%.37"4%8,9-*4'+)':% ! ! ! ! ! ! ! "! ! ! Renewable Energy Investment Forum For Fiji ! About IT Power The IT Power Group, formed in 1981, is a specialist renewable energy, energy efficiency and carbon markets consulting company. The group has offices and projects throughout the world. IT Power (Australia) was established in 2003 and has undertaken a wide range of projects, including designing grid-connected renewable power systems, providing advice for government policy, feasibility studies for large, off-grid power systems, developing micro-finance models for community-owned power systems in developing countries and modelling large-scale power systems for industrial use. The staff at IT Power (Australia) have backgrounds in renewable energy and energy efficiency, research, development and implementation, managing and reviewing government incentive programs, high level policy analysis and research, including carbon markets, engineering design and project management. About ReEx Capital Asia ReEx Capital Asia is a leading clean energy investment banking and consulting company specializing in the Asia Pacific region with headquarters in Singapore and representation in New Zealand, Indonesia and the Philippines. The company offers the following services and skillsets: • Capital raising for renewable energy infrastructure, energy efficiency projects, cleantech startups, green product & services companies (US$1- 100m) • Award-winning Advisor: strategy, financial structuring, M&A, due diligence, valuation, business modelling, feasibility study, market analysis, etc. • Decisive mix of financial & technical skills in energy, waste and water sectors with deep Asia Pacific market expertise and extensive industry network • 100+ clean energy transactions over past 15 years with aggregate value in excess of US$20 billion • Track record with international clients, major development financial institutions, commercial banks, corporates and family offices. ! ##! ! Renewable Energy Investment Forum For Fiji About this report This report is part of work commissioned by the UNDP to help Fiji meet its Fiji Renewable Energy Power Project (FREPP) goals. This work is intended to contribute to the revitalization of the renewable energy market in Fiji, especially where IPPs are concerned. Of particular interest is the policy framework regulating both public and the private investments in renewable energy, and the incentives that could be applied to stimulate growth in the sector. The work is divided into three components, a) the development of standard Power Purchase Agreements, b) the formulation of Investment Promotion Packages, and c) the assessment and development of Renewable Energy Incentive Schemes. This report contributes to part b) the formulation of Investment Promotion Packages and summarises the outcomes of an investment forum held in Suva, April 2015. ###! ! ! Renewable Energy Investment Forum For Fiji ! Report Control Record Document Control Fiji Renewable Energy Investor Forum 2015 – Post Report title Event Report UNDP Client Contract No. RFP/FJI10- ITP Project Number A0141 007-14 G:\ Work\0Projects\Fiji\Draft Report - UNDP DOE Investors File path Forum 21st April 2015 Client Client UNDP Emma Mario Contact Project Rev Date Status Author/s Approved Manager 22 Yanis 1 April Draft Rob Passey Muriel Watt Boudjouher 2015 2 17 Final Yanis June Rob Passey Muriel Watt Boudjouher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enewable Energy Investment Forum For Fiji LIST OF KEY ABBREVIATIONS ADB Asian Development Bank DOE Department of Energy FCC Fiji Commerce Commission FDOE Fiji Department of Energy FEA Fiji Electricity Authority FIRCA Fiji Revenue & Customs Authority EIB European Investment Bank FIT Feed in tariff FNPF Fiji National Provident Fund FREPP Fiji Renewable Energy Power Project FS Feasibility Study FSC Fiji Sugar Corporation IPP Independent Power Producer PPA Power Purchase Agreement PPP Public Private Partnership PV Photovoltaic RBF Reserve Bank of Fiji RE Renewable Energy SEFF Sustainable Energy Financing Facility UNDP United Nations Development Program $! ! ! Renewable Energy Investment Forum For Fiji ! CONTENTS 1! INTRODUCTION 1! 1.1! FORUM BACKGROUND 1! 1.2! OBJECTIVE OF THE FORUM 1! 1.3! KEY PARTICIPANTS & SPEAKERS 2! 2! PRESENTATIONS AND DISCUSSIONS 4! 2.1! PROPOSED FIJI NATIONAL ENERGY POLICY 4! 2.2! GREEN GROWTH FRAMEWORK FOR FIJI 5! 2.3! FEAS STRATEGIES, PLANS & RESTRUCTURING 6! 2.4! STUDY ON THE FORMULATION OF IPP AND PPA TEMPLATES 8! 2.5! PANEL DISCUSSION 10! 2.6! PROJECT PRESENTATIONS 13! 3! CONCLUSION \ FOLLOW UP 16! 4! APPENDICES 17! APPENDIX 1: FORUM AGENDA / SPEAKERS / MODERATORS 17! APPENDIX 2: FORUM PHOTOS 19! APPENDIX 3: PARTICIPANT LIST 21! APPENDIX 4: PARTICIPANT FEEDBACK 26! ! ! $#! ! Renewable Energy Investment Forum For Fiji 1 INTRODUCTION 1.1 Forum Background The United Nations Development Program (UNDP) Fiji and Department of Energy (DOE) initiated a consultancy assignment on the formulation of an independent power producer (IPP) and investment framework for renewable energy power generation projects in Fiji. ReEx Capital Asia was subcontracted by IT Power and UNDP to conduct one of the components of the assignment: the formulation of Investment Promotion Packages, which includes the following activities: i) Review and Listing of Bankable Investment Opportunities ii) Preparation of Investment Information Packages iii) Organization and Conduct of an Investors’ Forum The Renewable Energy Forum for Fiji 2015 was organised by ReEx Capital Asia and the Fiji Department of Energy, with support from the UNDP and Global Environment Facility (GEF)-funded Fiji Renewable Energy Power Project (FREPP). The Forum was held successfully on 9th April 2015 at the Holiday Inn Hotel in Suva and attended by over 100 participants. This report provides brief notes about the Forum and also highlights the key findings, with recommendations on how to improve the renewable energy investment environment in Fiji and the organisation of similar / follow-up events in the future. 1.2 Objective of the Forum To date there has been limited private sector investment in the power sector in Fiji, mainly due to regulatory uncertainty, the absence of an effective IPP framework and low IPP tariffs. The Forum was an opportunity to start addressing these issues, to present proposals on new supporting conditions in Fiji for investing in renewable energy and to engage with existing and potential independent power producers. The objectives of the Forum were to: • Provide an opportunity to a wide range of stakeholders to discuss and share the experiences and practices of establishing renewable energy power projects in Fiji; • Update knowledge and provide a platform for investors, project developers and governments to exchange information and facilitate networking on the latest ! @! ! Renewable Energy Investment Forum For Fiji changes in the renewable energy sector, which could mean business opportunities; and • Furnish Investors with screened, pre-feasibility projects that have good investment potential. 1.3 Key Participants & Speakers In order to have an open dialogue on the renewable energy sector, the Forum invited guests and speakers from government ministries, financial institutions, private sectors, academic institutions, and donors and project development partners from Fiji and overseas. The forum commenced with opening remarks from the Honourable Minister from the Ministry for Infrastructure and Transport, Mr Pio Tikoduadua, and the Deputy Resident Representative from UNDP, Ms Akiko Fujii. Mr Pio Tikoduadua made the opening address for the day. He said Fiji needs an estimated $1.5billion over the next decade to be able to largely rely on renewable electricity, and this could not be financed by the public sector alone, but needed significant local and foreign investment. “The Fijian Government’s integrated energy plan is focused and committed towards a new renewable energy path which demands a new development approach, innovative thinking and cooperative actions to address our current and future level of energy consumption. The intent is cross-cutting and geared towards strengthening Fiji’s energy security, encourage conservation techniques and technology, enhance environmental quality and economic vitality in public private partnerships that will grow energy efficiency and productivity,” Minister Tikoduadua said. Ms Fujii highlighted that, due to the high dependence on fossil fuel, investing in renewable energy would be very necessary for small island countries like Fiji. Ms Akiko also mentioned how UNDP was supporting policy makers and communities to promote access to sustainable energy services through the UN Initiative on Sustainable Energy For All (SE4ALL) and through its programme to promote sustainable energy access and improved energy efficiency. Ms. Fujii was pleased that UNDP is supporting