ESCO Revolving Fund | ESCAP Policy Documents Managment

Meta Data

Draft:

Effective Start Year:

2011

Scope:

National

Document Type:

Other

Economic Sector:

Energy

Energy Types:

Renewable, Other

Issued by:

Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy

Notes:

Unofficial translation

Source:

Energy For Environment Foundation (TH)

Energy For Environment Foundation (EN)

File:

ESCO Revolving Fund (Brochure) (TH)

ESCO Revolving Fund (EN)

Overall Summary:

The ESCO Revolving Fund aims to encourage private investments in renewable energy and energy efficiency projects which are viable, but seek for project finance. Also, ESCO Revolving Fund facilitates project owners or investors in order to benefit from selling carbon credit.

Efficiency

Energy Service Companies (ESCOs):

Fund objectives 1. To stimulate more than 1,250 million baht investments in renewable energy and energy efficiency. 2. To encourage more than 10 ktoe annual energy saving or valuing 250 million baht per year. 3. To promote and support private investments through Energy Service Company (ESCO). 4. To assist entrepreneurs in minimizing their energy cost, and achieving revenues from carbon credit 5. To provide financing to energy efficiency and renewable energy businesses.

Full Document Text

Project Budget

300 million baht

Project Sponsor

Department of Alternative Energy Development and
Efficiency (DEDE), Ministry of Energy

Fund Manager

Energy for Environment Foundation (EforE)

Introduction
Department of Alternative Energy Development And Efficiency (DEDE), under the financial support from Energy Conservation Promotion Fund (ENCON Fund), has established ESCO Revolving Fund to encourage private investments in renewable energy and energy efficiency projects which are viable, but seek for project finance. Also, ESCO Revolving Fund facilitates project owners or investors in order to benefit from selling carbon credit.
Energy for Environment Foundation (E for E) has been appointed from DEDE to be one of the ESCO Revolving Fund managers.

Fund objectives
1. To stimulate more than 1,250 million baht investments in renewable energy and energy efficiency.
2. To encourage more than 10 ktoe annual energy saving or valuing 250 million baht per year.
3. To promote and support private investments through Energy Service Company (ESCO).
4. To assist entrepreneurs in minimizing their energy cost, and achieving revenues from carbon credit
5. To provide financing to energy efficiency and renewable energy businesses.

EELIGIBLE APPLICANT

Potential entrepreneurs from industrial sectors or Energy Service Companies (ESCO) with potential energy efficiency or renewable energy projects resulting in reducing energy consumption, increasing energy efficiency, or renewable energy businesses.

Investment Services

1. EQUITY INVESTMENT

ESCO Revolving Fund will make equity investment in Energy efficiency or renewable energy projects.

Investment Criteria

Size of equity investment: 10%-50% of total equity but limited to 50 million baht per project, and not to be the major shareholder.

Investment period : no longer than 7 years.

Exit method : Shares sell-back to the project developer/ the major shareholder or the new investors.

Exit price : As agreed in the shareholder agreement.

Board – seat is required.

2. EQUIPMENT LEASING

ESCO Revolving Fund will provide long – term leasing service for entrepreneurs in purchasing equipment for energy efficiency or renewable energy, and allow the entrepreneurs to make constant repayment with low interest.

Leasing Criteria

A maximum of 100% of equipment cost but limited to 25 million baht per project.

Repayment duration : no longer than 5 years.

Interest rate : 3.5% per annum (Flat Rate).

E for E does not charge the project evaluation cost.

Grace period: no longer than 6 months.

3. ESCO VENTURE CAPITAL

ESCO Revolving Fund will venture with Energy Service Company (ESCO) to raise capital for investments in energy saving projects of the ESCO.

Investment Criteria

Size of equity investment: 10%-30% of registered capital but limited to 50 million baht per project, and not to be the major shareholder.

Investment period : no longer than 7 years.

Exit method : Shares sell-back to the project owner.

Exit price : As agreed in the shareholder agreement.

Board – seat is required.

4. GHG PROJECT FACILITY

ESCO Revolving Fund will facilitate project owners in developing project document and liaison with the relevant authority to ensure that they can benefit from greenhouse gas emission reduction activity.

5. CREDIT GUARANTEE FACILTY

ESCO Revolving Fund will cooperate with financial institutions or credit guarantee agencies to assist entrepreneurs in accessing to the long-term loan from bank by providing credit guarantee depending on the project risk and limited to 10 million baht at low premium rate.

6. TECHNICAL ASSISTANCE

ESCO Revolving Fund will provide technical support, e.g. walk-through audit to indentify the potential measures. In case the project owner has doubt about the energy saving, E for E will co-inspect the M&V after the measures have been implemented.

Application form can be downloaded at www.efe.or.th
Further information or assistance, please contact
Energy for Environment Foundation (E for E)
99/305 Thetsaban Songkhro Road, Lat Yao, Chatuchak, Bangkok 10900 Thailand.
Tel : +662 953 9881-4 Fax : +662 953 9885
www.efe.or.th Email : escorevolvingfund@efe.or.th