Discussion of the Project Idea Note (PIN)
Discussion of the Project Idea Note (PIN) Preferred Energy Inc.
Why do a PIN? • Know if the project meets general criteria set by the DNA • Be guided by DNA comments/interaction • Organize information • Tool to attract potential investors • Meet loan requirements of the bank
Anatomy of a PIN • Project information – Objective – Description & technology – Developer & sponsors
• Expected environmental & social benefits • Finance
Key concepts • GHG abatement – project must reduce CO2
• Additionality – not business-as-usual
• Sustainable development of host country • Viability – no operation, no GHG abatement
2 PIN styles • Rocky Farms waste-to-energy – “fill in the blanks”
• La Suerte rice hull-fired cogeneration – narrative style
Project objectives • Briefly state what you hope to accomplish • Mention energy needs and environmental challenges • Indicate how the project can improve company viability
Description & activities • What drove the sponsor to do the project? • What basic process? – any risk? – track record?
• New technology/process/application & key equipment to be used
Project developer/sponsor • Developer is the main project driver/initiator – typically has the technology access – knowledgeable in energy
• Sponsor is the eventual owner – RE project sponsors usually have either limited or no energy experience
• Importance of business track record & absorptive capacity for new technology
Type of Project • GHG targeted • Type and fields of activities • • • • •
– Check eligible project categories
Energy supply Energy demand Transport Waste management Land/forestry
“Positive” List • Renewable energy supply • Energy efficiency • Cogeneration
Project Location • Geographical context • Exact project location – nature of project access – logistics of fuels/products
• State important site characteristics
Project Schedule • Construction period • Target date of operation • Project life
GHG Abatement/Scenarios • Indicative annual CO2 abatement • Descriptions of baseline and project scenarios • Organize spreadsheet models
Global and Local Environmental Impacts • Follow arguments accepted in approved methodologies • Socio-economic impacts • Opportunities for replicability • Cite specific local benefits
Project Costs and Return • Details of capital costs • Financing plan • Project Internal Rate of Return (IRR)
CER estimates & crediting periods • CER estimates • CER price • Crediting period
Reality check • Can a typical project proponent meet the requirements set for a PIN? • How long will the process last? • What else can we do to facilitate? • What mechanisms for feedback can we institute?
Why do a PIN? • Know if the project meets general criteria set by the DNA • Be guided by DNA comments/interaction • Organize information • Tool to attract potential investors • Meet loan requirements of the bank
Anatomy of a PIN • Project information – Objective – Description & technology – Developer & sponsors
• Expected environmental & social benefits • Finance
Key concepts • GHG abatement – project must reduce CO2
• Additionality – not business-as-usual
• Sustainable development of host country • Viability – no operation, no GHG abatement
2 PIN styles • Rocky Farms waste-to-energy – “fill in the blanks”
• La Suerte rice hull-fired cogeneration – narrative style
Project objectives • Briefly state what you hope to accomplish • Mention energy needs and environmental challenges • Indicate how the project can improve company viability
Description & activities • What drove the sponsor to do the project? • What basic process? – any risk? – track record?
• New technology/process/application & key equipment to be used
Project developer/sponsor • Developer is the main project driver/initiator – typically has the technology access – knowledgeable in energy
• Sponsor is the eventual owner – RE project sponsors usually have either limited or no energy experience
• Importance of business track record & absorptive capacity for new technology
Type of Project • GHG targeted • Type and fields of activities • • • • •
– Check eligible project categories
Energy supply Energy demand Transport Waste management Land/forestry
“Positive” List • Renewable energy supply • Energy efficiency • Cogeneration
Project Location • Geographical context • Exact project location – nature of project access – logistics of fuels/products
• State important site characteristics
Project Schedule • Construction period • Target date of operation • Project life
GHG Abatement/Scenarios • Indicative annual CO2 abatement • Descriptions of baseline and project scenarios • Organize spreadsheet models
Global and Local Environmental Impacts • Follow arguments accepted in approved methodologies • Socio-economic impacts • Opportunities for replicability • Cite specific local benefits
Project Costs and Return • Details of capital costs • Financing plan • Project Internal Rate of Return (IRR)
CER estimates & crediting periods • CER estimates • CER price • Crediting period
Reality check • Can a typical project proponent meet the requirements set for a PIN? • How long will the process last? • What else can we do to facilitate? • What mechanisms for feedback can we institute?
