1. business and industrial
2. energy
3. renewable energy

PFAN-Asia Quarterly
Volume 002
December 31, 2014
Recent Successes
Business Case
Regional Updates
4 projects, representing
~$24M of investment, have
recently achieved financial
mobilization
Vietnam’s Textile Industry
could double its gross
profit by investing in
energy efficient measures
Clean energy projects
continue to make
significant headway across
the Asia region
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Dear PFAN Stakeholders,
Welcome to the second issue of the PFAN-Asia
Quarterly Newsletter!
It is with great pleasure we present the second issue of the PFAN-Asia
Quarterly Newsletter to you- our important stakeholders. This newsletter
covers PFAN-Asia’s recent achievements, as well as other industry news.
2014 has been a fabulous year and we are extremely excited to see clean
energy projects continue to make significant headway. In the last quarter of
the year, PFAN-Asia successfully mobilized financing for 4 projects,
representing US$ 24M in total investment. Over the course of 2015, PFANAsia anticipates mobilizing US$ 300M across the Asia region.
We hope that you will find the newsletter useful and informative. Please
contact us if you have questions, need more information, or have
suggestions for improvements. We thank you for your support, and look
forward to continued collaboration in the year to come.
A Very Happy New Year to you and your family!
Connect with us at
an upcoming event
February 5, 2015
Singapore
PFAN-Asia Mentor Luncheon
February 6, 2015
Singapore
AFCEF-5 Investor Forum
April 17-18, 2015
Colombo, Sri Lanka
Energy Sri Lanka
Yours truly,
The PFAN-Asia Team
asia@cti-pfan.net
Follow us online:
LinkedIn |Facebook | Twitter
December 2014
USAID PFAN-Asia
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Recent Successes
FY15 Q1
Program-to-Date
4
12
$23,850,000
$31,806,990
14
74
$325,752,759
$1,442,647,044
Investment Mobilized
#s of Projects
Total Investment (USD)
Pipeline Status
#s of Projects
Total Investment (USD)
“We appreciate PFAN’s
support to help the City
undertake this program to
save energy and expand
zones of safety for
citizens”
-Mr. Riwan Kamil, Mayor of
Bandung, Indonesia
 Radix Lifespaces Pvt Ltd. has recently secured debt financing of $250,000 for the first phase of a plant in
Bangalore, India. Scheduled to begin operation in May 2015, the plant will treat and process 25-30 tons of organic
waste a day, turning it into biogas and using 0.75 megawatts of gas turbine to generate electricity. The project was
first introduced to the PFAN program through the annual business plan competition (the Asia Forum for Clean
Energy Financing, AFCEF-3) in 2012. Since that time, PFAN has advised Radix on a range of issues, including its
capital raising approach, corporate legal structure, as well as strategic business opportunities.
 The City of Bandung, Indonesia will procure state-of-the-art, energy
efficient, LED Street lighting to expand the city’s lighting coverage and
mobilize a total of $10 million. PFAN-Asia in collaboration with the
University Sebelas Maret, will assist UNS to make a feasibility study to draft
regulation on procurement of LED street lighting. PFAN-Asia assisted the city
in conducting a study tour to conduct preliminary research and observe a
demonstration project. Leading up to this process, PFAN-Asia conducted a
workshop on LED lighting benefits, transaction structuring elements, legal
and regulatory elements. As next steps, PFAN-Asia is in discussion with US
OPIC and local bank lenders on debt financing and with a lighting vendor and
control systems vendor to provide vendor financing.
Above: Streetlights covering hundreds of
streets just like this in Bandung will
soon be replaced by state-of-the-art,
energy efficient LEDs.
December 2014
 Smo Thong Biomass Co., Thailand recently signed a MoU with a strategic
equity investor for US$12.6M to develop a biomass power project based in
Southern Thailand. The plant will use empty shells from palm oil production
for fuel, transforming the organic waste into 9.5MW of renewable energy
that will be sold to the Provincial Electricity Authority through a power
purchase agreement. The project supports the government’s initiative to
reduce reliance on fossil fuel imports, as well as avoid or reduce associated
greenhouse gas emissions. Smo Thong was first introduced to PFAN-Asia at
the Renewable Energy Asia event in Bangkok and was admitted to the
program in July 2014. Following an investment readiness assessment, the
project received further support in refining its financial model and, more
recently, reviewing and structuring the first round of outside investment.
USAID PFAN-Asia
Page 2 of 6
PFAN Supports Clean Energy In Laos
“Increased investment in renewable energy in Laos can enhance regional
energy trade and connectivity”
-Daniel Clune, US Ambassador to Laos
On December 16 and 17, 2014, PFAN-Asia organized a capacity
building workshop for renewable energy in Vientiane, Laos.
The event attracted over 70 local project developers,
investors and government officials. The United Sates
Ambassador to Laos, Daniel A. Clune, delivered opening
remarks followed by Laotian government officials. Local
project developers - representing more than 500 MW of clean
energy projects in solar, wind, biomass and small hydropower
- heard presentations from international experts on finance,
regulation and the environment. Participants also gained
insights on how to successfully approach project financing
from leading local and international financial institutions.
The first day’s session focused on an overview of potential
opportunities for renewable energy investment in Laos. This
included a discussion on regulation, procedures for
government approvals, financing options, and bankability
factors that affect financing strategies. Participants learned
more about the opportunities and risks on developing
renewable energy projects from a range of domestic and
international industry experts. The session closed with the
presentation of several case studies that highlighted
successful renewable energy projects in both Laos and other
neighboring counties.
The second day of the workshop focused on capacity building
for financial institutions, delivering presentations on the
various aspects and risks of financing renewable energy
projects, including key financing terms and conditions. A
presentation on the detailed financial analysis of a typical
renewable energy project demonstrated the key assumptions,
projection methods and scenario analysis undertaken. This
included a discussion on the due diligence process and how
financial institutions can mitigate and/or allocate risks that
best suits their investment objectives. The workshop
concluded with closing remarks by PFAN-Asia, along with a
Q&A session and discussions on next steps.
Over the course of 2015, PFAN-Asia anticipates mobilizing $10
million of investment for clean energy projects in Laos. For
further information or presentations from this workshop,
please contact us via email.
December 2014
USAID PFAN-Asia
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PFAN-Asia
Collaborates
with Johns
Hopkins
University on
Off-grid Solar
Starting in October 2014, PFAN-Asia
has been collaborating with a team of
4 graduate school consultants from
the Johns Hopkins University’s School
of Advanced International Studies
(SAIS) to research and develop a
report on The Business Case for Offgrid Solar in Cambodia. The purpose
of this exercise is to identify the
characteristics of successful off-grid
solar business models in similar,
emerging markets, and understand
how they might also succeed in the
Cambodian context.
Thus far, the desktop research has
highlighted two distinct solar business
models that could be commercially
viable:
1) Revenue diversified mini-grids,
which are mini-grids that serve a
combination of commercial and
household clients with one or more
anchor clients, deployed in
geographies that do not currently
have access to the grid, and;
2) Custom industrial applications,
which includes replacing or
augmenting diesel-powered systems
with solar components wherever such
systems are already in operation, as
well as displacing fuel usage in genets
for large industrial or commercial
customers.
Building off their initial desktop
research, the SAIS team will travel to
Cambodia in January 2015 to conduct
additional primary market research,
including customer surveys,
interviews, and other forms of data
collection to validate and finalize
their report.
The expected output of this exercise
is to develop the foundation for one
or more business models for off-grid
solar deployment that has significant
potential in the Cambodian market.
The final report will be completed in
April 2015.
PFAN-Asia’s recently published a
report on The Business Case for
Energy Efficiency in Vietnam’s
Textile Factories has put forward a
strong argument for investing in EE
initiatives. The textile industry is the
second leading export sector in
Vietnam and it is generating an
annual turnover of approximately US$
20 billion.
The study has found that every year
the industry pays close to US$ 3
billion for its energy bills (based on
the Industry Income Statement of
2013). Using the estimate of Ministry
of Industry and Trade that energy
saving potential for the industry is up
to 30%, PFAN-Asia calculates that
Vietnamese plants could save
approximately US$ 1 billion:
effectively doubling the industry’s
gross profit, of US$ 1 billion.
placed to benefit from EE measures that
will lower energy consumption.
In its study, PFAN-Asia has discovered
ample evidence from international
practices that opportunities for energy
efficiency improvements in textile plants
are numerous and potentially profitable.
Based on initial desktop research, PFANAsia is working with the PFAN-Asia’s
country manager to aggressively
stimulate demand for EE investments in
the Vietnamese Textile Industry through
the PFAN-Asia mentorship approach.
Accelerating
EE in
Vietnam’s
Textile
Industry
As the Vietnamese Government has
recently approved to increase the
electricity price from $7 cent/kwh to
$ 9 cent/kwh in 2015, PFAN-Asia
believes Vietnamese plants are well
Photo: Ando International Garment Factory in Vietnam-ILO
December 2014
USAID PFAN-Asia
Page 4 of 6
Regional Updates
Burma-Burma has mapped a 15-year power development plan to meet
increasing demand, setting its sights on boosting capacity from 4,581
megawatts to over 29,000MW in 2031. The plan will shift Burma’s focus
from hydropower to other energy sources, including coal, natural gas,
solar, and wind power. Under the plan, Burma is set to have 41 power
plants by 2031. (Source: eco-business.com)
India-India needs to invest US$250 billion over the next five years to
tackle chronic energy shortages and provide power for its 1.2 billion
people. The government is targeting US$100 billion of investment in
renewables and US$50 billion in transmission and distribution to "create a
national grid where power can seamlessly flow", Power Minister Piyush
Goya told a World Economic Forum conference in New Delhi on November
6, 2014. (Source: Reuters)
Photo: PFAN-Asia Mentors at AFCEF 5
Indonesia-The government hopes to double the amount of electricity generated from renewable resources within
five years, a move that will require some US$36 billion in investment. A groundbreaking ceremony for the Kayan
plant, which was developed by PT Kayan Hydro Energy, was carried out earlier this year and is expected to be
completed in 2018. In addition, Supreme Energy recently obtained $50 million from the ADB to fund geothermal
exploration activities. (Source: thejakartapost.com)
Malaysia-The Sustainable Energy Development Authority Malaysia (SEDA Malaysia) has approved 250MW of solar
projects for its feed-in tariff (FiT). The FiT has proved popular since the scheme began in 2011. This time last
year, SEDA approved 2,279 FiT applications for individual renewable energy projects totaling 24.43MW, of which
8.98MW have already commenced operations. (Source: pv-tech.org)
Philippines- US PV energy provider SunEdison has finalized a partnership with Aboitiz Renewables that could see
the pair build up to 300MW of PV in the Philippines. Solar has begun to make some headway in the Philippines
lately, with the country’s first utility-scale plant coming online earlier this year. Currently, the island nation has
a project pipeline exceeding 1GW. (Source: pv-tech.org)
Thailand-The Electricity Generating Authority of Thailand (EGAT) has
announced plans to increase national energy security by establishing 7
additional coal-fired power plants and 12 more alternative energy
power plants by 2022. The new plants will use technology and
guidelines that meet or exceed international standards, so as to reduce
conflict with surrounding communities. (Source: eco-business.com)
Vietnam-Vietnam and the World Bank recently signed a US$500 million
loan to fund the construction of over 1,000 kilometers of transmission
lines and implement Smart Grid technologies to improve the reliability
and quality of electricity as part of the Transmission Efficiency Project.
(Source: thanhniennews.com)
Photo: Developers at Capacity Building Workshop in Laos
December 2014
USAID PFAN-Asia
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Work with Us
PFAN is actively looking to support clean energy entrepreneurs in raising capital for their projects.
Upon admission into the program, each new project to PFAN is provided an Investment Readiness Assessment,
or IRA. Based on the outcome of IRA, further support may include one of three services below:
1. Strategic Advisory and Mentoring: PFAN-Asia
provides strategic advisory and mentoring on the
preparation and refinement of the business plan and
other related documentation necessary for investor
outreach. Mentorship will be conducted by individuals
who possess extensive track record of successfully
raising capital for clean energy companies.
2. Investment Promotion and Outreach: PFAN-Asia
promotes and matches investment ready proposals
with suitable investors.
3. Technical Assistance: Tipping point technical assistance refers to late-stage technical assistance that
pushes projects up and over the tipping point so that an investor decides to move forward with the investment
(e.g., legal opinion, technical review or engineering feasibility report).
For further information, please contact us at:
USAID RDMA
Email: rdma-info@usaid.gov
Oretes Anastasia
Regional Development Mission for Asia
Athenee Tower, 63 Wireless Road
Bangkok 10330 Thailand
Tel: +66 2 257 3260
Email: oanastasia@usaid.gov
Website: http://www.usaid.gov/asia.regional
December 2014
Partner Contact
Dan Potash (USAID Contractor)
Private Finance Advisory Network-Asia
Deloitte Consulting LLP
Two Pacific Place Building
142 Sukhumvit Road
Bangkok 10330 Thailand
Tel: +66 2 118 9730
Email: dpotash@deloitte.com
USAID PFAN-Asia
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