Marie Lam-Frendo, Atkins Acuity associate director presented at Sustainable Finance Collective Asia on 22 November 2016 on the renewable energy market in Asia.

1. Sustainable Energy Thematic Session
Brief Presentation by Clifford Chance, Atkins Acuity and ING
Conference: SFC Asia Launch Event
Singapore, 22 November 2016

2. November 2016
Energy Efficiency and Renewable energy projects are key to
reduce GHG emission in Asia
41.4% Of the total investment needed
are in the power sector(2013-2020)
34%
17%
Source: IEA, World Energy Outlook Analysis
Solar
Wind
Biomass
and W2E
Renewables
Energy
Efficiency
Biofuels
Small hydro
Geothermal
Marine
Renewable energy
Energy Efficiency
To avoid 3 degree of global warming,
the following measures should be
implemented in Asia by 2020…..
Energy saving
Building retrofitting
Green Building
Transport
Energy Storage
Methane
reduction
Inefficient
coal plants
Fossil-fuel
subsidies

3. Buildings have a large impact on the environment…
3
40% of global energy
use
60% of total electricity
consumption
1/3 of global GHG
emissions
25% of global water
consumption
40% of global
resources
Source: UNEP
With population growth and increasing urbanization,
this will only get worse unless action is taken

4. 4
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H2 Building, Tianjin, China
Green building activities in the future
46%
38% 37%
27% 25%
55%
40%
19%
13%
45%
0%
10%
20%
30%
40%
50%
60%
New commercial
construction (e.g., office,
retail, hotel)
New institutional construction
(e.g.,schools,hospitals,public
buildings)
Retrofit of existing buildings New low-rise residential New high-rise residential
Global
Planned
green
activity
over the
next
three
years*
20% of construction cost
30% energy consumption
35% in Carbon emissions
7 years projected investment recovery period
4 Million Yen estimated operations cost
savings per annum
*Source: Word Green Buildings Trends 2016

5. November 2016
Promising Renewable Energy Market (e.g. ASEAN)
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
RE Target
         
Selling Tariffs
     
Incentives
      
Financing Support
       
Permits and Licenses
       
Technical Aspects
       
Target share of renewable
energy up to 50% and triple
renewable energy
generation capacity to
15GW by 2030
Philippines
Target share of renewable
energy from < 5% to 25%
by 2025
Indonesia
No declared renewable
energy mix target but aims
for 350MW of solar
installations on public
sector rooftops by 2020.
Singapore
Target share of renewable
energy from 6% in 2015 to
11% by 2020
Malaysia
Target share of renewable
energy up to 25% by 2022
Thailand
Target share of renewable
from 3% in 2010 to 5% by
2020 and 11% by 2050.
Vietnam
Source: ACE – ASEAN, Eco-Business

6. November 2016
SFCA - Extended Renewable Financing Platform
Nam Theun 2
1070MW Hydro
Laos
EDC Burgos
150 MW Windfarm
Philippines
Sarulla
330 MW
Geothermal
Indonesia
IP5
WTE
Singapore
Nagi
13 MW
Solar PV
Japan
SFCA Considerations
Small and large deals
Realistic development period
Positive E&S impact
Focused bank group
Bespoke Structure
E-submission
SFCA is complementary to conventional project financing. Taking into account the
above considerations, SFCA intends to accelerate, collaborate, shaping, digitalize
the fund raising for sustainability deals in the region
ING’s conventional financing in Asia

7. November 2016
Bankability, risk allocation considerations remain important
Gov’t
Support
Tariff
levels and
currency
Supply
vs
Demand
GFM and
terminatio
n regime
Land/
Right of
Way
GFM and
termination
regime
Technical
, E&S,
EPC,
O&M
Fuel
availability
KYC,
CDD
DSCRs
and IRRs
STAKEHOLDERS
• OFFTAKER
• GOVERNMENT
• SPONSORS
• BANKS
• ECA / DFIS
• CONTRACTORS
• OPERATORS

8. November 2016
Zoom on energy storage – an increasingly bankable asset
Clifford Chance’s energy storage experience
Lakeland Solar & Storage Project, Nth Qld
•13 MW PV with 5.3MWh/1.4MW LI battery
• Australia’s first grid-connected, utility scale solar
and storage project
Redstone, RSA
•100MW CSP tower
•molten salt storage of up to 12 hours
Enhanced Frequency Response, UK
•200MW of EFR; four year contracts
•Acting for a leading technology provider
Proponents will benefit from the global experience of Panel members, which will be
important for the financing of newer technologies
Energy storage
Drivers
•Intermittency issues
•Ancillary services revenues
•Price arbitrage
•Grid cost savings
•Decentralization
•Costs falling rapidly
•Off-Grid applications