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#celive #seuk @CleanEnergyLive cleanenergylive.co.uk
4-6 October 2016 The NEC, Birmingham, UK
#celive #seuk @CleanEnergyLive cleanenergylive.co.uk
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Company profile May 2016
Managing Regulatory Risks: Solar in Africa SEUK. 4.10.2016 Dr Daniel Davies. Director, Hybrid Power Systems
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Solarcentury: a pure-play solar company
• No1 market share in the UK and leading market share in the Netherlands, Kenya, Panama
• Founded in 1998 and now with over 200 employees on four continents
• Consistent revenue and EBITDA growth
• Leading ethical brand We donate 5% of annual net profits to SolarAid
An industry leader
Southwick, 48MWp, one of the two largest solar farms in UK
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Increasingly global footprint
World’s largest solar bridge Global framework agreement with IKEA
1st spot market solar farm in Panama Largest solar farm in Kenya and one of largest diesel hybrid
systems in the world Africa’s largest solar carport
Recent examples of market leadership
Solarcentury
1. UK 2. Netherlands 3. Spain 4. France 5. Germany 6. Ghana 7. Kenya 8. South Africa 9. Chile 10. Panama 11. Mexico
8
Which particular aspects need to be considered for project developers/EPCs in the region?
COMMERCIAL • ADDRESSABLE MARKET
• IMPORT CONTROLS
• FINANCIAL CONTROLS & TAXATION
• LOCAL OWNERSHIP RULES
• REGULATORY TRANSPARENCY
• RULE OF LAW/ENFORCING CONTRACTS
• SECURITY
OPERATIONAL • STAFF SAFETY
• TRANSPORTATION AND LOGISTICS
• CERTIFICATIONS/OPERATOR LICENCES
• CONTRACTOR H&S
• LOCAL CONTENT REQUIREMENTS
Is the regulatory framework / business environment conducive to investments in solar?
9
Market
6.5 6
3.6 3.6 4.4 4
6 5 5.5 6 6
4
7 6
4
6 6 7 6.5
0
2
4
6
8
South…
Mo
rocco
Turk
ey
Ro
man
ia
Bulg
aria
Ukra
ine
Ch
ile
Bra
zil
Me
xic
o
US
A
Austr
alia
New…
India
Sri L
anka
Japa
n
Gha
na
Kenya
Jord
an
Saudi…
UA
E
Tan
za
nia
irradiance (kWh/m2/day)
124 107
72
165 133
169
41 51
142
17 37 31
98 95
26
68
115
36 18 10
78 60
0
50
100
150
200
South…
Mo
rocco
Turk
ey
Ro
man
ia
Bulg
aria
Ukra
ine
Ch
ile
Bra
zil
Me
xic
o
US
A
Austr
alia
New…
India
Sri L
anka
Japa
n
Gha
na
Kenya
Jord
an
Saudi…
UA
E
Tan
za
nia
UK
Electricity Connection
10
Ease of Doing Business – Some of the specifics
35
94 71 72
59
152
39
126
53
4 15 3
132
89
20
63
109 96
12 33
127
7
020406080
100120140160
South
Afr
ica
Mo
rocco
Turk
ey
Ro
man
ia
Bulg
aria
Ukra
ine
Ch
ile
Bra
zil
Me
xic
o
US
A
Austr
alia
Ne
w Z
eala
nd
India
Sri L
anka
Japa
n
Gha
na
Kenya
Jord
an
Saud
i A
rabia
UA
E
Tan
za
nia
UK
Ease of doing business
31
75
155 123 128
180
90 127
43 17
42 2
181
111
63
156
37
93
4 12
176
22
0
50
100
150
200
South
Afr
ica
Mo
rocco
Turk
ey
Ro
man
iaB
ulg
aria
Ukra
ine
Ch
ileB
razil
Me
xic
oU
SA
Austr
alia
Ne
w Z
eala
nd
India
Sri L
anka
Japa
nG
ha
na
Kenya
Jord
an
Saud
i A
rabia
UA
ET
an
za
nia
UK
Construction Permits
144
43 80 72
91
140
62
121
59 20 30 27
109
53 16
90
141
58 18 5
92
13
0
50
100
150
200
South
Afr
ica
Mo
rocco
Turk
ey
Ro
man
ia
Bulg
aria
Ukra
ine
Ch
ile
Bra
zil
Me
xic
o
US
A
Austr
alia
New…
India
Sri L
anka
Japa
n
Gha
na
Kenya
Jord
an
Saudi…
UA
E
Tan
za
nia
UK
Trading/Import 28 30
20 16
10
25 17
25 30
34 30 30 30
35 30
25 30
14
0 0
30 23
0
10
20
30
40
South
Afr
ica
Mo
rocco
Turk
ey
Ro
man
ia
Bulg
aria
Ukra
ine
Ch
ile
Bra
zil
Me
xic
o
US
A
Austr
alia
New…
India
Sri L
anka
Japa
n
Gha
na
Kenya
Jord
an
Saudi…
UA
E
Tan
za
nia
UK
corporation tax (%) *
11
Ease of Doing Business – General business context
64 80 61 76 86
152
22 73
100
24 8 1
95 86
14 69
154
56 57 28
100
16
050
100150200
South…
Mo
rocco
Turk
ey
Ro
man
ia
Bulg
aria
Ukra
ine
Ch
ile
Bra
zil
Me
xic
o
US
A
Austr
alia
New…
India Sri…
Japa
n
Gha
na
Kenya
Jord
an
Saudi…
UA
E
Tanza…
UK
Corruption Perception Index (x/183)
50 73 59
77 74 82
31 53 58
5 20 25
56 52
9
114 102 71
17 27
120
10
0
50
100
150
Global Competitiveness Index (x/142)
123 130 92
50 55 76 44
84 57
4 2 5
134 97
12
135 143 95
56 30
152
28
050
100150200
South…
Mo
rocco
Turk
ey
Ro
man
ia
Bulg
aria
Ukra
ine
Ch
ile
Bra
zil
Me
xic
o
US
A
Austr
alia
New…
India
Sri L
anka
Japa
n
Gha
na
Kenya
Jord
an
Saudi…
UA
E
Tan
za
nia
UK
Human Development Index (x/187)
58 50 58 56 53
25
88
55 34
91 95 98
55 53
88
54
17
61 60 63 36
95
020406080
100120
Rule of Law (%)
12
• Consumer protection
• Contractor certification
• Design standards
• Equipment standards
• Net metering and FITs
• Standardised PPA contracts
What specific aspects of the European (regulatory) experience could be exported to the region?
13
14
Softer solutions to regulatory risk
1. Engage with the regulators/bureaucrats– don’t side line/cut corners
15
Softer solutions to regulatory risk
1. Engage with the process – don’t side line it
2. Join the local solar and renewable energy “community”
16
Softer solutions to regulatory risk
1. Engage with the process – don’t side line it
2. Join the local solar and renewable energy “community”
3. Invest in training and development
17
Softer solutions to regulatory risk
1. Engage with the process – don’t side line it
2. Join the local solar and renewable energy “community”
3. Invest in training and development
4. Disseminate good practice in design and H&S
