THE SPEZIALIST FOR PUBLIC CONSULTING 1 Support Mechanisms for sustainable small hydropower plants,...

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THE SPEZIALIST FOR PUBLIC CONSULTING1

Support Mechanisms for sustainable small hydropower plants, case of AustriaChristian Oberleitner Vienna, November 2014

THE SPEZIALIST FOR PUBLIC CONSULTING

Table of Contents

Profile of KPC

Austrian Experiences with different Financial Supporting Schemes

Project cycle

Conclusion

Table of Contents

Profile of KPC

Project Cycle

Conclusion

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 PactEconomic support programmes of the Province of TyrolPhotovoltaics 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)

National and International Consulting Examples of international consulting projects

– EU study on engaging the private sector in development and extending the blending activities of the EU

– EBRD Consultancy Services to support the implementation of the Residential Window (RuSEFF-Residential) under the Russian Sustainable Energy

& Carbon Finance Facility– GIZ Support to municipalities in Moldova for improving municipal service

provision – OECD Study on improving water management and climate change adaptation in

the water sector in Moldova– World Bank Support in the set-up of a Homeowners Association Resource Center in

Ukraine – EIB EIB - Consultancy services in support of EU Programmes on energy

efficiency– ADA 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

Table of Contents

Profile of KPC

Project Cycle

Conclusion

Stakeholders usually have different approach – Involved beneficiaries & Target groups

Austria tried different supporting schemes

FIT tariff not always preferable for SSHP operators

FIT has been introduced in 2003

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

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

Table of Contents

Profile of KPC

Project cycle

Conclusion

Project cycle

Table of Contents

Profile of KPC

General purpose of Financial Support Schemes

Essential Design Parameters

Conclusion & Findings

Investment costs per kW installed capacity

Source: Oe-mag16

Support level per kW installed capacity

Source: oe-mag

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

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

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

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

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

THE SPEZIALIST FOR PUBLIC CONSULTING23

Kommunalkredit Public Consulting GmbH

www.publicconsulting.at

Türkenstraße 9, 1092 WienTel +43 1 31631-222Fax +43 1 31631-104

c.oberleitner@kommunalkredit.at

THE SPEZIALIST FOR PUBLIC CONSULTING 1 Support Mechanisms for sustainable small hydropower plants,...

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