Disbursement projections

Committed disbursements from the GET FiT Program go towards four purposes:

  1. payments to approved projects, with 50 % paid at commercial operation date and 50% paid in the form of results based support over the first five years of operation, subject to actual production,
     
  2. payments to consultants under the Technical Assistance Facility for ERA,
     
  3. advisor and consultants for the overall management and monitoring of the Program, and
     
  4. management fee to KfW.

Figure 13 illustrates the actual (up to and including 2017) and projected disbursements from the Programme. The projections are based on the status of the project portfolio and expected progress. The majority of commercial operation date payments are expected within the 2017-2019 period. Due to the provision of results-based disbursements during the first five years of operation for each project, the final payments from GET FiT will not occur before 2024.

 

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Figure 13: Projected annual payments (premium payments and consultants) under GET FiT. Projections are subject to uncertainty, mainly related to individual project progress.

 
For the disbursement projections, the main uncertainty relates to actual COD for the various projects. Delayed implementation of the portfolio has already shifted the disbursement profile of the Programme considerably. With most projects now financially closed and under construction, future changes in the disbursement profile will be linked predominantly to construction related risks. There is also some uncertainty tied to the annual result-based payments for each project. Since the developers will only be paid for what they are producing (with a cap at their planned average), significant under-production across the portfolio may lead to accumulation of excess funding.  Figure 14 shows the relative shares of the various cost components under the GET FiT Programme, based on current budget reservations. Overall, approximately 10 percent of the overall funds are tied to management, implementation and the Technical Assistance Facility, while 90 percent of the total commitments are expected to be disbursed as premium payments. 
 
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Figure 14 - Approximately 90 % of commitments to GET FiT are projected to be disbursed as premium payments.