pv power plant project development and implementation...

PV Power Plant Project Development and Implementation in Southeast Asia

Renewable Energy Asia Exhibition – 6th June, 2012

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Presentation outline

PV Power Plant Project Development Experiences

Key risks/issues to beware of and the mitigation measures, particularly in Asia

Key components of a PV farm

The PV project development process

Typical business models and financing structures

Q & A

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Case studies on PV project developments

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The PV project development process 10 good reasons to switch to solar photovoltaic electricity

1. The fuel is free

2. It produces no noise, harmful emissions or polluting gases

3. PV systems are very safe and highly reliable

4. The energy pay-back time of a module is constantly decreasing

5. PV Modules can be recycled and therefore the materials reused in the production

6. It requires low maintenance

7. It brings electricity to remote rural areas

8. It can be aesthetically integrated in buildings (BIPV)

9. It creates thousands of jobs

10. It contributes to improving the security of Asia's energy supply

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PV module price experience curve Evolution of prices of large PV systems

Current Solar Power Status

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Levelised cost of electricity (LCOE) Development of utility prices & PV generation costs

PV Electricity Generation Cost

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Global Cumulative Installed Capacity Share (MW; %) Evolution of Global Annual Market Scenario per Region (MW)

Solar Power Global Market..

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World map of global cumulative capacity showing the accelerated and paradigm shift scenarios by region

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Detailed Annual Historical Market Data and Outlook for Asia Pacific

Source: EPIA, May 2012

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Detailed Cumulative Market Data and Outlook for Asia Pacific


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Global Annual Cumulative Installed Capacity per Region (MW)

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Thailand’s Solar Installation Trend

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The Photovoltaic technology can be used in several types of applications:

Grid-Connected Power Plants

Grid-connected domestic systems

Consumer goods

Off-grid systems for rural electrification

Off-grid industrial applications

Solar Farms also known as PV farms, BIPV and roof- top PV systems or so called large-scale centralized PV grid connected systems produce electricity from the sun and sell the electricity to the utility grid.

PV Applications

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l Find reliable power purchaser and/or markets l Determine the pre-feasibility and expected output l Obtain all licenses like for example: PPA, grid connection and other local licenses l Secure the land; buy or lease decision

1st Step: Pre-Development

2nd Step: Technical

l System installation l Secure agreements to meet all O&M needs l Connect the system to the grid l Finalize all documents and approvals to start the actual electricity sales

4th Step: Implementation

l Select the most efficient technology for the chosen location l Find a reliable turn-key contractor l Obtain binding proposals l Select all suppliers and contractors

l Prepare a full feasibility study and business plans l Establish access to capital and banks l Sign all finance related contracts l Sign EPC contract and order all components

3rd Step: Finance

The PV Project Development Process

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Modules Modules

Wafer technology 90 % market share Wafer technology

90 % market share

Mono-crystalline Efficiency = 16-19%

Mono-crystalline Efficiency = 16-19%

Polycrystalline Efficiency = 14-15%

Polycrystalline Efficiency = 14-15%

Thin-Film technology

10 % market share

Thin-Film technology

10 % market share

A-SI:H Efficiency = 4-8%

A-SI:H Efficiency = 4-8%

Micro-Crystalline Efficiency = 7-9% Micro-Crystalline

Efficiency = 7-9% CdTe

Efficiency = 10-11% CdTe

Efficiency = 10-11% CIS

Efficiency = 7 - 12% CIS

Efficiency = 7 - 12%

CPV Efficiency = 25%

CPV Efficiency = 25%

Module Types and Technologies

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Decentralized System Design Centralized System Design

| Suitable for systems in the lower MW range | Easy to install | Less complicated to maintain | Especially suitable for systems with different integrated solar generator types | High output efficiencies

| Suitable for systems in the multi-MW range | More cost efficient for large scale power plants | Especially suitable for systems with homogeneous solar generator types | High output efficiencies

Centralized or Decentralized System Design

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Static system 1-axis

2-axis

Output 100% 115 % 125%

Occupied area 100% 100-120% 200%

Maintenance 1 2 3

Cost 100% 106% 120%

Mounting Systems

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| Monitoring of central inverters, tracking system and connection boxes | Readout of inverter and string data | Shows system status of all components

and initiates alarm

Internet portal Analysis software Alarm function

Monitoring and Control

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Project Finance is “A funding structure that relies on future cash flows from a specific project as the primary source of repayment with that project‘s assets and rights held as collateral security.” Five key components are: | Cash flow predictions | Risk allocation agreements | Funding and repayment mechanisms | Legal security and provisions | Project reporting and compliances

Typical Business Models and Financing Structure

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Political Risk Insurance

Technical/Commercial Syndicate Bank n

Syndicate Bank 2

Syndicate Bank 1

SPV Special Project Vehicle

Operations and Maintenance (O&M)

Operator Government

Off take: Utility or Markets?

Banks: Lead Arranger

Insurances Land owner

EPC Contractor

Sponsor = Equity Investor

Contractual Situation in Typical PV Project Finance Structure

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SPV A P

RE Plant Equity Debt

Investor

Bank Debt Facility Debt Facility

Pledge all rights and securities Pledge all rights and securities

Annex Power Annex Power

EPC (PD?) EPC

(PD?)

General Non-Recourse Structure

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| Special component certification requirements by the local authorities

| Grid-connection related problems | Component supply shortages

| Select only components which fullfill all local requirements | Build a close relationship the local grid owner | Use strong suppliers and EPC partners

| Banks have limited experiences in PV debt financing, structures and risks | Special country related documentation is normally needed | There is only a limited amount of equity investors for PV projects in Asia

| Early relationship building with the bank is crucial | Detailed, creditable and in-depth documentation | Early relationship building with possible equity partners is a crucial

| Local suppliers could be protected by high duties or other regulations | High country and political risks | Higher risk for sudden changes in the subsidy policies

| Use of local suppliers for key-components | Use of local banks and investors | Use of local government funding and support

Technical

Financial

Government

Project Phase Key Risks Mitigation Strategies

Key Risk Factors and Mitigation Strategies for PV Projects in Asia

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| Location: Nakhon Prathom, Thailand

| Size: 3.85 MWp




| Module Type: Polycrystalline - 16,240 Modules




One of the largest commercial PV power plants currently under construction in SEA


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| Location: Nakhon Prathom, Thailand

| Size: 9 MWp




| Module Type: Polycrystalline – 40,000 Modules




One of the largest commercial PV power plants currently under construction in SEA

Project Name: Thailand 9 MWp Power Plant

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| Location: Lopburi, Thailand

| Size: 2.376 MWp




| Module Type: Polycrystalline -10,800 Modules




Project Name: Thailand 2.376 MWp Power Plant II

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| Location: Khon Kaen, Thailand

| Size: 1.2 MWp




| Module Type: Thin Film – 12,964 Modules



| Year of Execution: Mid 2012

Under Construction


YOUR RENEWABLE ENERGY PARTNER IN SOUTH EAST ASIA For additional information please contact Mr. Daniel Gaefke at [email protected] or via telephone: +66 (0) 2 660 6800

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