InterContinental London - The O2
The Growing Economies Energy Forum
InterContinental London - The O2
22 -23 June 2016
*Opening: 22 June, 16:30hrs
The Growing Economies Energy Forum will host open discussions between the Governments and pre private sector from the most exciting and anticipated new energy markets in the world – Myanmar, Pakistan, Iran and Pacific Alliance (Peru, Chile, Colombia, Mexico). As these growing economies open up for international investment following exciting political and economic developments, each are starting a new exciting era in their energy markets that the industry’s big players can’t ignore.
View our latest press release
Download the Growing Economies Energy Forum 2016 brochure for more information
Confirmed speakers include:
- H. E. Dr Cesar Emiliano Hernandez, Undersecretary of Electricity, SENER, Mexico
- Paula Estévez Weinstein, Head of International Affairs, Ministry of Energy, Chile
- Shamsuddin Shaikh, Chief Executive Officer, Sindh Engro Coal Mining Company
- Luis Alberto Haro, President, Electroperu, Peru
- Asif Saad, Chief Operating Officer Distribution, K-Electric Limited
- Jason Zhengrong Lu, Acting Head, Global Infrastructure Facility, World Bank Group
- Liang Xuan, Director Middle East and North Africa, Goldwind International Holdings (HK) Limited
- Nicolas Leong, Business Development Manager, South East Asia, Wärtsilä Energy Solutions
- Mehmet Öğütçü, Chairman, Global Resources Partnership
- Brian O’Hanlon, Director of Business Development, Renewable & Clean Energy Group, Overseas Private Investment Corporation
- Dr Ernesto Bonafé, Senior Regulatory Expert, The Energy Charter
- Renny Alberto Lopez, Energy Projects Director, CAF Development Bank
- Murat Colakoglu, Partner, EMEA Region Power & Utilities Tax Leader, PwC Turkey
The Growing Economies Energy Forum will be held alongside the global and widely respected in the industry annual meeting, Africa Energy Forum. This investment meeting established itself as the international marketplace where governments and power utilities unite with the global players in the energy industry to focus on delivering power infrastructure projects across Africa and also outside its borders.
Many of the private sector participants specialise in investing and developing power and infrastructure projects in developing and growing economies around the globe.
· Economic growth in Myanmar is expected to average at least 8.5% a year in coming years, given potential and the interest it has garnered from investors all over the world. This will raise demand for power or electricity services for consumption and production. Myanmar projects universal electricity access by 2030, or 7.2 million new connections, through its ambitious National Electrification Plan. This will require an estimated investment of US$444 million annually over 15 years.
· Following the recent nuclear deal, a new era of economic and social development in Iran is set to start, bringing huge opportunities for investors to engage with one of the world’s biggest energy superpowers. The development of Iran’s electricity sector will be paramount to achieve this growth. While energy demands are growing at 6 per cent a year, growth in capacity is limited to a third of that. The country needs to invest $7-8 billion a year in its power generation and distribution sector only to keep pace with its growing demands.
· In January 2016, Iran’s energy Minister Hamid Chitchian announces that electricity generation projects worth a total of $30bn are to be offered up to foreign investors, as Tehran looks to add between 47,000 and 50,000 megawatts to its over generating capacity over the next 10 years.
· The Pacific Alliance is the most exciting economic group to emerge from Latin America - it is one of the first regional attempts to create a larger internal market while also building a gateway to Asian markets. The Alliance has affordable renewable energy sources, including hydro power, which is a major source of electricity in the country members. In addition, potential exists for other renewable energy, in particular solar and wind.
· In February 2016, Peru’s investment regulatory authority announces the results of their fourth government energy auction since 2009, which commissioned 162MW of wind, 184.5MW of solar, 4MW of biomass and 80MW of mini-hydro projects with 20-years PPAs starting from $37.49 for wind up to $77/MWh for biomass.
If you are interested in speaking at the 1st Growing Economies Energy Forum, please contact Talita Covre on:
T: +44 (0) 207 384 7719 E: talita.Covre@energynet.co.uk
To keep updated about the latest news follow:
Download The Emerging PV Market in Iran
Download Pakistan energy access assesment
Download Power sector development in Myanmar
Download Renewable energy policy for Chile
Download renewable energy propsects Mexico
Sub Secretary of Electricity
Director of the International Department
Ministry of Energy, Chile
Chief Executive Officer
Sindh Engro Coal Mining Company
Mr. Shamsuddin A. Shaikh is the Chief Executive Officer of Engro Powergen Ltd (EPL), Engro Powergen Thar Ltd. (EPTL) & Sindh Engro Coal Mining Company (SECMC). Currently, he is heading the Thar Coal Mining and Power Project undertaken by SECMC & EPTL - joint venture between Government of Sindh, Engro Corporation & many other local and international companies which has been established to utilize the potential of the huge coal reserves under the Thar Desert.
Mr. Shaikh is a Mechanical Engineer from NED University of Engineering & Technology and holds MS in Industrial Engineering and MBA from Colorado State University, USA.
Mr. Shaikh started off his career in 1987 in Exxon Chemical Pakistan Limited as a Mechanical Engineer. Subsequent to which he served in different positions in various capacities. In the early years he contributed towards the Business Development aspect in Engro Chemical Pakistan Limited, Engro Vopak Terminal Limited, & in Plant Management and Sales aspects of Engro Fertlizer Limited. Mr. Shaikh enjoyed prominent positions in Engro Foods Limited as Director Supply Chain in year 2005 and as Senior Vice President in 2012. Overall, he has 28+ years of extensive career experience in different fields.
Mr. Shamsuddin A. Shaikh has been involved in many significant projects of the Company like Engro Vopak Terminal Limited, Engro Polymers & Chemicals Ltd, Engro Foods Limited and now he is heading the development of one of the most strategic project of national importance – The Thar Coal Project.
Mr. Shaikh is a Member of the Board of Directors of various companies including EPL, EPTL & SECMC.
Senior executive, graduated in the specialty of Electrical Engineering, specializing in Energy Planning, Electricity Planning and Electrical Power Systems, Regulation and Electricity Tariffs. With Master of Science in Electrical Engineering in the US and studies in Specialization in Operation and Control of Electric Power, Strategic Planning, Development and Regulation, in the US, France, Germany and Sweden. Multi-functional experience in organization, management and operation of Electric Companies, regulation and setting of electricity tariffs, budgets and investment plans, buying and selling energy, consulting, business plans, institutional relationships and business skills for comprehensive business consolidation. Experience in the implementation of mechanisms for productive use and development of equipment for the efficient use of electricity in the urban sector and the rural sector; development of new energy sources (solar, biomass, wind) and formulating strategies and policies for the massive development of small hydro); regulation and rate design for Rural Electrification. 42 years in the electrical industry, in private companies, institutions and public sector, having gained experience and developed skills in the fields of regulation, operation and organization of electricity businesses, business strategy and negotiation. Creativity, analytical skills and ability to promote and manage changes in competitive environments. Ability to establish and maintain top-level contacts in the country and abroad. Proactive entrepreneurially-oriented, results-based management. Capacity to anticipate and solve problems. Top-level contacts within the business community and Peruvian society. Fluent in English and French, and German language skills.
Chief Operating Officer Distribution (COO)
Acting Head & Lead Infrastructure Finance Specialist
Global Infrastructure Facility, World Bank Group
Director Middle East and North Africa
Goldwind International Holdings (HK) Limited
Liang Xuan graduated as an Electronics Engineering Master, and has been working for Alcatel-Lucent in the UK prior to joining Goldwind. Liang Xuan is a member of IEEE and China Institute of Communications, and is also a CFA Candidate.
Liang Xuan joined Goldwind in 2009, and has been working as a Business Development in the Middle East and Africa regions. Up to date, he has closed a few wind farm projects deals in the region totaling more than 300MW in Ethiopia, Pakistan, Jordan and Sudan. He is experienced in wind power project development, project investment and financing, commercial transaction, etc.
Liang Xuan is now the Chief Representative of Goldwind in the Middle East, to assist wind power projects development and to fulfill Goldwind globalization strategy and local renewable energy needs.
Business Development Manager, Energy Solutions, South East Asia
Global Resources Partnership
An internationally recognized authority on energy, investment, finance and geopolitics over the past 30 years, Öğütçü has built significant knowledge and experience on policy and business matters, with a particular geographic focus on Europe, Central Asia, Russia, the Middle East and China.
Currently, Öğütçü chairs Global Resources Partnership, UK, sits on the boards of Genel Energy plc, Sisecam Group and Saudi Crown Holding, serves as Special Envoy of The Energy Charter for MENA Region, and as Executive Chair of The Bosphorus Energy Club, an exclusive gathering of the senior executives and leaders in finance, energy and politics across Turkey, Eurasia, the Middle East and Africa.
An effective convener and doer, he provides strategic advice to large international energy groups and governments on access to fund-raising, investment, business growth in emerging market economies, M&A deals, commodity trading and risk mitigation.
In his early career, Öğütçü was a prominent diplomat, having worked on critical “economic and energy diplomacy” dossiers in Ankara, Beijing, Brussels and Paris, and later as an advisor to the late Turkish Prime Minister, Turgut Ozal. Öğütçü served for 12 years as a senior staffer at the International Energy Agency and OECD in Paris, managing energy security and international investment programs. Until recently, he was director for BG Group’s international government affairs in London, managing high-level government engagements and new business development around the world. He also worked as a board member of Yasar Holding Group, and Chairman of the Advisory Board of Invensys plc.
Öğütçü is fluent in Turkish, English, French and Chinese mandarin (conversational).
Director of Business Development
Renewable & Clean Energy Group, Overseas Private Investment Corporation
Energy Projects Director
CAF Development Bank
Industrial Engineer from Universidad de Carabobo (Venezuela) and MBA in Strategic Management (Gonzaga University, Washington). Has over 30 year experience in Corporate (Mercantil, Royal Bank of Canada), Investment (Morgan Grenfell/DB) and Multilateral Banking (CAF, Development Bank of Latin America). Career at CAF includes Corporate and Financial Institutions Lending; Acting Representative/Country Manager (Bogotá, Colombia); Director-Corporate Banking: including structured finance and financial advisory to private sector; Director Distressed Assets; Deputy, Senior Risk Officer. Since 2012, Corporate Director, Energy Projects: including responsibilities for origination, evaluation and structuring energy sector projects in all member countries.
Partner, Energy, Utilities and Mining Industry Leader
Murat has been a partner of PwC Turkey since 1993 basing on the energy, utilities and mining industry, performing in the teams for mergers & acquisitions, due diligences and tax consultancy for multinational companies. Murat acted as a team leader and coordinator of world-class tax audit teams that have served the clients in his portfolio, providing them with top-notch investment tax consultancy services.
Murat has focused on firms that primarily deal with energy and infrastructure investments (including Build-Operate and Build-Operate-Transfer models) since 1997. He has a thorough grasp of the financing models of these investments in terms of tax principles as well as comprehensive understanding of the financial audit and planning work that goes into green field investments, privatisation and acquisitions.
Murat currently acts as the Energy Utilities and Mining Industry leader in the firm. Murat, who holds the CPA (SMMM) certificate, is a member of the TÜSİAD (Turkish Industry and Business Association) and YASED (Foreign Investment Association) Energy Working Groups.
Murat also writes articles about tax and finance for the business daily Dünya Newspaper. He graduated from Istanbul University’s Faculty of Economics’ Econometrics Department. He speaks Turkish and English.
He is currently lecturing at Bilgi University on Energy Policy for an Executive MBA level program.
He serves as the vice-chairman of The Bosphorus Energy Club.
Chief Executive Officer
JCM Solar Capital
Christian Wray is a co-founder and the Chief Executive Officer of JCM Capital. In addition to providing the strategic vision for the company, Christian also focuses on the evaluation and approval of investment opportunities and the initiation of the company's strategic partnerships and alliances. Christian also plays a key role in all financing aspects of the business and maintains relationships with the company’s stakeholders.
Prior to his current position, Christian was the Director of Finance for Ozz Solar International, a Canadian solar energy development company focused on rooftop solar development in Ontario. Christian was also previously the Chief Operating Officer for Greta Energy, a Canadian-based wind energy development company with assets across the globe.
Christian is a graduate of University of Toronto (B.Comm.) and is a Chartered Professional Accountant, Chartered Accountant, having worked in the Toronto and UK offices for PwC in their Banking and Capital Markets Group.
Deputy Director, International Department
César Ortiz-Sotelo has over 30 years of experience in energy, utilities and infrastructure with knowledge and practice of international organisations coupled with a global and truly international track record, under staff and operational positions.
Since 2008, he is Deputy Director of the International Department of ENGIE.
Prior to his current position he was based in Lima, Peru since October 2004, where he first served as Deputy CEO of Cálidda, the gas distribution company in Lima and then as Senior VP responsible for Business Development in the Andean countries. He was a Board member of several local affiliates.
Mr Ortiz-Sotelo was previously Senior VP of ENGIE Energy International within the Business Development Oversight Department, based in Brussels. His first position within ENGIE was in 1997 as Director of Electricity of Elyo, an Energy Services affiliate based in Paris. Before joining ENGIE, he worked for major international companies such as Alstom and Shell in France, UK, The Netherlands, Japan and Brunei.
The Energy Charter
Dr. Urban Rusnák became Secretary General of the Energy Charter Secretariat in January 2012. Dr. Rusnák is Slovak by nationality. He graduated from the Moscow Institute of Oil and Gas in 1990 with an M.Sc. and received his Ph.D. from the Ankara University Institute of Social Sciences in 1998. Dr. Rusnák also holds an Honoris Causa doctorate from the Kiev Slavonic University since 2009.
Prior to his appointment with the Energy Charter Secretariat, Dr. Rusnák worked at the Ministry of Foreign Affairs of the Slovak Republic and was the Leader of the Project for Slovakia's External Energy Security. Before that, he was Extraordinary and Plenipotentiary Ambassador of the Slovak Republic to Ukraine (2005-2009), Head of the MFA Political Analysis Division (2003-2005), Deputy Head of Mission at the Embassy of the Slovak Republic in Turkey (1994-1998). He also held the position of Executive Director of the International Visegrád Fund in Bratislava (2000-2003) and Director of the Slovak Institute for International Studies (1999-2000).
Additionally, Dr. Rusnák was a Lecturer at the Kiev Slavonic University (2005-2009) and at the International Relations Faculty of the Economic University in Bratislava (2000-2003). He was also Chairman of the Editorial Board of the Slovak Institute for International Studies (2000-2003), Editor in Chief for the MFA International Issues Journal (1998-1999) and is the author of several articles on international relations, energy security, development assistance and Caspian oil and gas issues.
Since becoming Secretary General, Dr Rusnák has focussed his efforts on the modernisation of the Energy Charter Process, and on the updating of the institutional arrangements for the Conference. A chairmanship of the Energy Charter Conference by member states was introduced in 2014. The culmination of the modernisation efforts however has been the adoption of the International Energy Charter in May 2015. This is a new political declaration which addresses the energy challenges of the twenty first century.
Senior Regulatory Expert
The Energy Charter
Ernesto Bonafé works as a trade and regulatory expert at the Secretariat of the Energy Charter Treaty in Brussels. He focuses on energy market reform from regional and international perspectives. He has been involved in the promotion of the 2015 International Energy Charter across countries from Africa and Latin America. He is also the author of the study: “The role of the Energy Charter Treaty in fostering regional electricity market integration: Lessons learnt from the EU and implications for Northeast Asia.”
Currently his work focuses on structured collaboration with energy regulatory authorities, which like the Energy Charter pursue the objective to ensure well-functioning energy markets. Mr Bonafé worked as a legal expert in the EU-project ‘Paving the Way for the Mediterranean Solar Plan’, dealing with the promotion of renewable energy sources in countries of North Africa and Middle East and the future convergence with the EU internal energy market. Mr. Bonafé was training coordinator at the Florence School of Regulation, where he has been lecturing on energy regulatory authorities. He also worked as legal expert in various law firms in Spain and Brussels, and acquired professional experience at the European Commission, the European Parliament and the European Court of Justice. Mr. Bonafé holds a PhD on Energy Policy and EU Law from the European University Institute of Florence, Italy.
The Abraaj Group
Murtaza Hussain has over 11 years of experience in corporate finance and private equity investments. Murtaza joined Abraaj in 2007 and has been involved in all aspects of the investment process from sourcing and execution to post-acquisition value creation. He is part of the global energy infrastructure team and has evaluated several transactions including the successful execution of the partnership with the Aditya Birla Group to setup a gigawatt scale solar power platform in India. He was also a key member of the investment team that made the US$ 1 bn acquisition of K-Electric, one of the world’s largest integrated utilities and put together the turnaround plan for the distressed utility. Post-acquisition he was seconded to the Company and worked closely with the Power Sector Regulator in Pakistan to restructure the Company’s existing tariff structure, setting the base for a successful turnaround. He also worked closely with institutions such as IFC and ADB to secure US$ 275 mm of debt financing for the Company’s new 560 MW gas-fired power plant. He was also a key member of the team that successfully negotiated the landmark 650 MW Power Purchase Agreement between the National Utility (NTDC) and K-Electric. Prior to joining The Abraaj Group, Murtaza worked at the Investment Banking Division of BMO Capital Markets in Toronto. He was a part of the Metals & Mining Group, primarily involved in Mergers and Acquisitions and Asset Spin-offs. Murtaza graduated with distinction from McGill University (Montreal, Canada) with a major in Finance and Accounting. He speaks English and Urdu fluently.
Director of Energy Infrastructure
The Abraaj Group Mexico
Key topics discussed at this year’s meeting:
Please download the latest brochure:
To submit a topic or register interest in a speaking opportunity at this meeting, please contact:
The Growing Economies Energy Forum 2016 will be held at InterContinental London - The O2 - a brand new luxury hotel located on the Greenwich Peninsula, overlooking the River Thames and Canary Wharf.
Why join us at the 1st Growing Economies Energy Forum
- Information will be presented on government’s incentives and strategies to develop their respective power sectors.
- Get the market intelligence you need in one place and understand where the commercial opportunities are.
- The Growing Economies Energy Forum will be co-located with the 18th edition of the ‘Africa Energy Forum’, the world’s largest global conference for Africa’s power energy and infrastructure sectors.
- The combined meetings will bring together 2,000+ credible investors and developers from 82 countries that specialise in growing and emerging markets.
- Network in an exclusive pro-investment environment with our selected audience of government decision makers and bankable investors.
- The joint GEEF and AEF exhibition is the hub of the combined Forums, bringing together over 100 credible solution providers operating in the world¹s growing economies.
- The ideal platform to showcase your company and continue the dialogue started in the high level panel discussions.
- To originate your next power projects, make sure you are in the room with senior public sector stakeholders from targeted markets looking to secure investment in their energy sectors.
Wärtsilä Energy Solutions is a leading global supplier of flexible baseload power plants of up to 600 MW operating on various gaseous and liquid fuels. Our portfolio includes unique solutions for peaking, reserve and load-following power generation, as well as for balancing intermittent power production. Wärtsilä Energy Solutions also provides LNG terminals and distribution systems. As of 2015, Wärtsilä has 58 GW of installed power plant capacity in 175 countries around the world.
ESK Law Firm is one of Iranian leading law firms, with a reputation for standing out – and for being outstanding. ESK Law Firm's partners and associates with more than a decade experience in the legal services, provide professional services of substantial value to anyone who is presently managing, or considering development of local and international business operations. We provide legal services in areas such as international trade law; international investment law; banking and finance law; franchising; taxation, energy law; company law as well as conduct due diligence for entities, represent clients for negotiating, and designing and drafting various kinds of international contracts.
ESK Law Firm is organized into more than five dozen practice areas, so that clients have easy access to attorney skills and knowledge specific to a particular business and industry.
Platform to develop your business in newly emerging markets
Launched during the Africa Energy Forum 2016, this year’s meeting offers your business particularly effective and relevant platform to engage with government, investors and senior stakeholders in the power project value chain, and to develop lasting and credible relationships with key industry decision makers.
View list of the confirmed sponsors for AEF 2016
EnergyNet’s exclusive sponsor partnerships provide extensive visibility for your company and brand and align your business firmly in the power space with the opportunity to build brand equity in the growing economies: Iran, Pakistan, Myanmar and Pacific Alliance.
A Commercial Partnership offers you the chance to:
o Raise brand awareness and create preference
o Create positive PR and raise awareness of your organisation
o Provide attractive content for a range of products and services
o Build or reinforce brand positioning through associative imagery
o Support a specific sales promotion campaign
o Act as corporate hospitality that promotes good relations with clients
The Global Infrastructure Facility (GIF) is a partnership among governments, multilateral development banks, private sector investors and financiers—designed to provide a new way to collaborate on preparing and structuring complex infrastructure projects to mobilize private capital. The comprehensive project support provided by the GIF draws on the combined expertise of its technical and advisory partners. This group, which includes commercial banks and institutional investors, ensures that well-structured and bankable infrastructure projects are brought to market in a way that sustainably meets the needs of governments and service users. This unique collaborative approach has won strong support from private investors, donors, and governments from emerging markets and developing economies.
ProChile is Chile’s Export Promotion Bureau. It is part of the Ministry of Foreign Affairs of Chile and is responsible for promoting exports of Chilean products and services. ProChile also contributes to the dissemination of foreign investment opportunities and tourism promotion.
ProChile has a network of over 50 offices worldwide and 15 export centres within Chile, which have the experience and the skills to help boost the export sector and position Chile’s attributes in international markets.
The Mexican Chamber of Commerce in Great Britain (MexCC) is a UK non-profit independent organization created to represent the interest of Mexican companies trading and doing business in the UK. The MexCC aims to make the commercial relationship between Mexico and UK more profitable for the benefit of its members.
The MexCC organize networking events, produce business intelligence reports, implements lobbying strategies and provides exposure and publicity to its members. It is also the meeting point of businesspeople, politicians, academics, diplomats and members of NGOs, bring Mexico and the UK closer together.
The Emerging Market Investor's Association (EMIA) connects investors with reputable investment professionals, research, education and news, increasing confidence and transparency within emerging markets. For investment professionals, we create enhanced brand awareness that deliver tangible opportunities for business growth.
For investors, EMIA is an objective, comprehensive and unbiased source of expert, on-the-ground information, daily news and in-depth analysis. In short, EMIA is the world’s first and only non-for-profit Emerging Market organization, dedicated to advancing the industry as a whole, representing the combined interests of investors and investment professionals, across asset classes.www.emia.org
MESIA is the largest solar trade association in the Middle East and North Africa region . Established in 2009, the association represents over 120 international and local organizations including investors, installers, manufacturers, law firms, consultancies, policymakers and banks. MESIA is headquartered in Dubai, UAE and carries out solar-related activities and programs across the MENA region. Its regional coverage stretches from Egypt to Saudi Arabia, with over 7,600 subscribers. Over the past 5 years, MESIA has organized over 50 industry events focused on strengthening the footprint of solar energy in our region. Along the way, MESIA has won several prestigious awards and been recognized by leading government authorities across the MENA region. MESIA also publishes industry-leading reports which have been featured in the New York Times, Wall Street Journal and the FT. Among its most coveted events are the annual Middle East Solar Awards and the Middle East Solar Pioneers program. To learn more about MESIA visit www.mesia.com.
The French Renewable Energy Association (SER) was established in 1993 to promote the interests of industrials and professionals in the sector to public authorities, parliament and all bodies in charge of energy, industry, employment, the environment and research. It groups industrials from all of the renewable energy channels: biofuels, biomass (FBE), wood, biogas, renewable marine power, wind power, geothermal energy, hydroelectricity, heat pumps, solar photovoltaics (SOLER), thermal and concentrated solar power.
The International Hydropower Association (IHA) is a non-profit organisation that works with a vibrant network of members and partners active in more than 100 countries. The association’s mission is to advance sustainable hydropower by building and sharing knowledge on its role in renewable energy systems, responsible freshwater management and climate change solutions.
Engerati is a central destination for delegates from leading global energy events to network, collaborate, share and engage. We provide our members with completely free access to our ever-growing archive of industry news, white papers, case studies, webinars, video presentations, interviews and blogs. Engerati is an invaluable resource to all energy professionals – nowhere else can you get such in-depth information on the global energy industry for free.
Clean Energy Pipeline is the leading independent source of news, data and analytics about the Clean Energy sector. Our team delivers real-time business news and identifies the latest and most relevant regulatory and policy announcements, investment, M&A and project finance news, new funds and fund closes. This news is supplemented with opinion-pieces based on in-depth interviews with senior-level executives, advisers, investors and policy-makers. We also publish a variety of reports and guides, including our Market Reports, the Quarterly Statistics reports, our Data Insight reports, the Expert Guides series and bespoke Research reports. Simply visit our website to download our complimentary reports and to find out how to sign up for a free trial (http://public.cleanenergypipeline.com/)
Jason Zhengrong Lu, Acting Head, Global Infrastructure Facility, World Bank Group
What are some of the biggest challenges for power project financing in emerging energy markets?
· Lack of well-structured pipeline of bankable transactions
· Regulatory risks and weak offtakers
· Consistent government support and political will at high level
· Governance and transparency etc.
How is the Global Infrastructure Facility (GIF) helping to address these issues?
To address these issues, GIF has taken on a very different approach to project preparation: a somewhat top down approach (vs typically bottom up approach by private sector) where GIF is providing funding support to our technical partners, which include major MDBs, to work with the governments to bring well prepared projects to the market. As a new open collaboration platform with an aim to mobilize private capital, one of the most important pillars of the GIF is the role of private sector. Private investors including some of the premier institutional investors and commercial banks are the Advisory Partners of the GIF, providing important feedback to GIF and its Technical Partners to ensure the GIF prepared projects are well structured and attractive to the private sector investors and financiers. As a result, we hope GIF-supported project are better aligned with government priorities with better risk allocation, better governance and transparency, safeguard compliance, and more bankable and attractive opportunities to the private sector.
Asif Saad, Chief Operating Officer Distribution, K-Electric
K-Electric, Karachi's own utility, has been privatised in 2005 and has continued to manage the city's generation, transmission, distribution, and retail services. 11 years from the privatisation, how does the relationship between the company and private investors has changed?
K-Electric (KE) was privatized in 2005 to a consortium of Al Jomaih Group of Saudi Arabia and National Industries Group of Kuwait. In 2008, Abraaj Capital acquired 50% equity stake in the holding company (KES Power) as well as management control. Between 2005 and 2009, KE’s financials were in need of much improvement since KE had an ageing fleet of embedded generation units and no fresh investment had been made by the Government in improving generation and transmission in the previous 10 years. Since 2009, the new management at KE took an array of initiatives to tackle both internal and external issues for a successful turnaround of the utility. KE’s private sector led management has taken steps to control wasteful expenditure, demanding value for money and going the extra mile to ensure customer satisfaction and loyalty.
Today we proudly claim that 61% of Karachi is provided with uninterrupted electricity, including all industrial zones and pockets of underprivileged areas. Our transmission and distribution losses have reduced by 12.2% over last six years, standing today at 22.9%. As a result, KE managed declared net profit for the first time in 17 years in 2012.
During the fiscal year 2012-13 International Finance Corporation (IFC) and Asian Development Bank (ADB) converted USD 25 million each of their debt into equity. KE’s share price has also grown by 178% over the past 5 years. Thus, these events validate the investment case and success of KE’s turnaround strategy.
The relationship between the company and the private investors has therefore strengthened through these years. The involvement of Abraaj in the operations has reduced with time, which is due to KE’s remarkable turnaround and high level of confidence in the local management of the Company.
What is your vision for the development of Karachi's distribution system?
In 2013, KE celebrated its first centenary since it was incorporated in September, 1913. In 2013, KE rebranded itself from Karachi Electric Supply Company Limited to K-Electric Limited in order to establish its identity as a power utility company with wider interests other than Karachi. KE is the only vertically integrated power utility company in the country where power generation, transmission and distribution are interlinked with each other to provide the customers with seamless solutions. Whether domestic, residential, agricultural, industrial or commercial, KE proudly serves them all with the devotion to service and quality that is unmatched in the country.
KE inherited a dilapidated and ageing infrastructure resulting in low system reliability with transmission & distribution losses touching 40%. The new management invested USD 1.2 billion, where generation capacity was enhanced by 1010 MW along with transmission and distribution network optimization. Like any other developing country, power theft has been a major impediment in KE’s success, which is being dealt with by implementation of Ariel Bundled Cabling (ABC) and power anti-theft campaigns. Moreover, KE is continuously involved in various CSR activities which include community welfare programs, free/subsidized electricity to certain welfare institutions (hospitals, schools etc.) affecting the lives of 3.5 million people directly.
Karachi is the 7th largest city in the world with a population of over 22 million. KE’s vision is not only to provide energy to the city of Karachi, parts of interior Sindh and Balochistan, but energizing the hopes and dreams of over 22 million lives through providing uninterrupted power supply. To achieve this, we carry out efforts to improve our processes and make strategic investments in our infrastructure while reengineering our operations to deliver quality and reliable services to our customers.
The key initiatives from distribution perspective to be taken by KE include:
· Smart Grid Project - which will allow remote management of smart meters at customer premises and transformers, which is currently in its pilot phase.
· Continue installation of Aerial Bundle Cable (ABC) on High Loss Transformers to control theft.
· Transformer / feeder technical loss reduction projects.
What opportunities are there for investment in power development in the region? Are there any projects in the line-up?
Pakistan is a power deficit market which requires significant investment to meet the ever growing demand as the country has an energy deficit of more than 6GW. Keeping this in view, the Government of Pakistan has supported private sector participation in the power industry where now private sector contribution in generation capacity has increased by c.30% since 2009. The GoP has also restructured the power sector through unbundling WAPDA (vertically integrated public power utility) into 9 distribution companies and 4 generation companies that are in the privatization pipeline. Further, the investment climate is feasible in Pakistan for the following reasons:
· One-window facilitation and investor-friendly policies
· Transparent regulatory environment
· Multi-year & long-term tariff
· GoP guarantee and protection
· Tax exemptions
Since KE’s privatization, it has invested USD 1.2 billion in power generation, transmission and distribution. Undoubtedly, KE is the flagship company for privatization in Pakistan.
KE’s key generation and transmission projects in pipeline are as follows:
1,000 MVA of transmission enhancement
700 MW IPP Coal Project with China Datang Overseas Investment Company participating in this project through a Joint Development Agreement. Estimated cost of the project is US$ 1 billion and expected COD is June 2020.
420 MW Coal Conversion Project - Conversion of 420 MW of existing furnace oil units into coal-fired plants to be structured as an IPP where estimated cost of the project is US$ 400 million.
LNG – 450 MW power plant with Engro Corp.
Conversion of Operational Open Cycle Plants - Conversion of 2 existing open cycle plants (220 MW and 180 MW GE JB) to combined cycle adding additional 47 MW where the estimated cost of the project is USD 100 million.
Other IPPs - KE is also planning to contract electricity from additional IPPs to boost external generation; potential IPPs include Nooriabad (104 MW) and Fauji (56 MW) expected COD 2016 / 2017
Which question or industry issue are you most interested to hear discussed at this year’s Growing Economies Energy Forum?
· Energy generation and distribution challenges in the developing world
· Role of technology in utilities
· What amount of international support is available from developed countries or multilateral agencies for renewable energy initiatives in the third world which are capital intensive but promote a greener environment viz solar power, wind energy and wave energy?
Eng Luis Alberto Haro, President, Electroperu, Peru
What will be the relevance of coal-fired power to Pakistan electricity industry in the years to come?
The ‘Growing Economies Energy Forum’ – a platform where world’s most bankable investors meet the world’s brightest economies
Press release: 13/04/16
By: Talita Covre
Government representatives will meet leading energy investors and power developers in London at the Growing Economies Energy Forum on 23rd June, to discuss opportunities for investment into the following emerging energy markets: Myanmar, Pakistan, Iran and the Pacific Alliance– Peru, Chile, Colombia and Mexico. As these countries open up for international investment following political and economic developments, organisers EnergyNet will facilitate a platform for discussion between investors and governments.
The meeting was created as a response to the huge demand for energy access in these important markets. Myanmar alone requires an estimated investment of US$444 million annually over 15 years, investment opportunities of around US$20 billion.
In Pakistan, a potential regional hub for energy development is another hugely important market. Sindh Engro Coal Mining Company’s CEO, Shamsuddin Shaikh, commented that their ‘Thar’ project has a potential to “produce 4000 MW for next 50 years. Total foreign exchange savings for 4000 MW of Thar coal based power plants are estimated at more than USD 50bn.”
Iran and its global partners needs to invest at approximately US$7 billion every year in power generation and distribution only, just to keep pace with its growing demands. Following the recent nuclear deal, a new era of economic development is set to start, bringing opportunities for investors to engage with one of the world’s biggest energy superpowers.
On the regional scale, the Pacific Alliance accounts for 35% of Latin America’s GDP with a combined need of over US$200 billion of investment needed to move forward power development projects. Speaking about country's first-ever private auction, Mexico's Deputy Electricity Minister, Cesar Emiliano Hernandez, confirmed to speak at the Growing Economies Energy Forum, says “the contracts are expected to generate more than $2bn in investment by 2018”.
Co-located with the world’s largest global conference for Africa’s energy and infrastructure sectors, the Africa Energy Forum, the Growing Economies Energy Forum will bring together 2,000+ credible investors and developers from 82 countries that specialise in growing and emerging markets.
Simon Gosling of EnergyNet commented, "This is an unbelievable opportunity for electricity starved economies to tap into an extraordinary pool of the world’s most experienced power developers and investors, such as the DFIs who all have a large presence at the forum – if government are serious about solving their energy issues, there is no better place to start. It is also quite an exciting proposition for our long standing partners to quickly understand the scale of the opportunities arising in Myanmar, Iran, Pakistan, Peru, Colombia, Mexico and Chile – I’ve certainly not experienced a meeting with such a diverse gathering of countries all seeking common solutions."
Confirmed speakers include:
· Dr Cesar Emiliano Hernandez, Sub Secretary of Electricity, SENER, Mexico
· Paula Estévez Weinstein, Head of International Affairs, Ministry of Energy, Chile
· Jesus Tamayo, Executive Director, Osinergrim, Peru
· Luis Alberto Haro, President, Electroperu, Peru
· Shamsuddin Shaikh, Chief Executive Officer, Sindh Engro Coal Mining Company
· Asif Saad, Chief Operating Officer Distribution, K-Electric Limited
· Liang Xuan, Director Middle East and North Africa, Goldwind International Holdings (HK) Limited
· Nicolas Leong, Business Development Manager, South East Asia, Wärtsilä Energy Solutions
· Jason Zhengrong Lu, CFA, Acting Head, Global Infrastructure Facility, World Bank Group
View the meeting brochure here
For more information about this meeting: