Key addressing on policy & implementation matters at the Eilat-Eilot Renewable Energy conference Feb 2010 (*) as presented by Amnon Samid, Executive Chairman, the AGS group:
• Addressing the challenges of grid integration for renewables from the transmission perspective.
• Distributed energy generation as key to deploying advanced clean energy technologies.
• Adopting the grid to be able to integrate different unstable sources of energy, incorporate energy storage, distribution automation and distribution management systems and improving frequency stability of grids that incorporate remote clean energy sources.
• Applying smart grid vision globally – a global link which uses AC and DC transmissions.
• Is not it a shame wasting hundreds of millions during the last decade on subsidizing PV integrators, instead of investing these money in developing new technologies that will not require governmental incentives and replace all use of fossil fuel for electricity production and transportation?
• Presenting the ‘big picture’ beyond subsidies and feed-in tariffs – insight into the future of developing new technologies and evaluating whether technological breakthroughs are realistic for achieving grid parity and how we can make it happen (Manhattan-like clean energy projects).
Samid also encouraged Lenders to take the risks in financing renewable energy projects that are based on new technologies, which are not defined yet as “bankable”, while presenting the main risk factors and mitigation required:
• Technology, which should be mitigated by proven design or tested Equipment (especially when it’s not a proven technology). • Suppliers, which should be mitigated by their references, track record, experience and financial strength and warrantees.
• EPC, which could be mitigated by performance guarantee and ongoing measurements of performance & degradation.
• Developers, especially their credibility, track record and risk profile.
• O&M, which should be mitigated by track record of the contractor, warranties for availability, performance guarantees & degradation, spare parts management and O&M budget.
• Operation strategy & Performance model for the lifetime of the project.
• Financial model, which should include exposure to risks involved in fluctuations in Interest rates, currencies rates, seasonal factors etc., while especially it’s important to make sure that low probability scenarios will still result in sufficient revenues to repay the loan.
• Solar resources, especially the basis and accuracy of historic irradiation data and assessment of future irradiation data.
• Infrastructure, Permits and Licenses, including space constrains, access roads, availability of fossil fuels, water availability, flood protection, transmission facilities, geotechnical & environmental assessments.
• Revenue which is controlled by all the above and the Power Purchase Agreement [PPA].
(*) The conference brought together major leaders on clean & renewable energy — technology experts, academic researchers, regulators, policy makers, consumers, financial experts, industry leaders, utilities, start-up companies along with influences from the US, Europe & Africa.
• Amnon Samid was moderating a panel with key decision makers analyzing the current situation of clean & renewable energy industry in Israel