Feed-in Tariff Models for Renewable Energy – biomass, cogen, mini-hydro, wind, solar and ocean thermal (OTEC)

April 29th, 2010 6 Comments   Posted in feed-in tariff

Feed-in Tariff Models for Renewable Energy – biomass, cogen, mini-hydro, wind, solar and ocean thermal (OTEC)

Renewable energy feed-in tariffs for biomass, biomass cogen, mini-hydro or run-of-river hydro, wind, solar PV and ocean thermal energy conversion (OTEC) have been calculated using a project finance model prepared for the National Renewable Energy Board (NREB) by Marcial Ocampo – your favorite energy technology expert.

Using standard assumptions of supplier FOB, the all-in capital cost is calculated.  The summary sheet of the model then summarizes the assumptions and results.

Marcial Ocampo

Energy & Business Development Consultant

More »

How to reduce electricity cost in the Philippines – response to latest MERALCO price increase

April 27th, 2010 17 Comments   Posted in cost of power per kwh

How to reduce electricity cost in the Philippines – response to latest MERALCO price increase

The largest distribution utility in the Philippines, MERALCO, recently reflected in the power bill of each residential, commercial, industrial, public building and street lighting consumer classification, the previous month’s rise in WESM prices.

I for one was also hard hit (my power bill increasing from P4,000 to over P7,900 last month), with the explanation of its MERALCO President, Mr. De Jesus, who said, the generation charge reflected the increase in the rise of WESM prices, the spot market of electricity producers.  From a previous month of just over P5.14/kWh, the average WESM price jumped to over P6.70/kWh in view of the use of more expensive oil-fired power plants to replace hydro plant capacity that were temporarily lost as a result of a prolonged drought nationwide.  Some plants are also undergoing preventive maintenance in preparation for the May 10 elections.

These events will not be the last, and will continue to persist, unless the country improves its generation mix.  As I’ve said in previous blogs which was quoted by renowed Philippine Star Columnist Boo Chanco, “no amount of optimization of our existing generation mix will result in any substantial reduction in electricity tariff unless we introduce a significant quantity of nuclear electricity”.

The newly appointed Energy Secretary Ibazeta, who recently replaced Angelo Reyes, clearly emphasized to keep the nuclear power option open as a means to provide a long-term solution to the country’s high power cost.

The following blog will clearly illustrate the potential cost reduction with the entry of a 620mw nuclear power plant into the country’s generation mix, which will product electricity at a constant rate of around 2.50 Pesos per kWh.

Alternatively, the short-term solution is to construct more “clean technology” circulating fluidized bed (CFB) coal-fired power plants that is capable of generating electricity in the order of 50, 100, 200, 300 MW at costs far cheaper than oil-fired, natural gas-fired and geothermal power plants.  As I’ve shared before, clean coal will be the transition fuel and power generation technology that will carry the world, including us, while we move towards renewable energy sources.

Happy Reading.

Marcial T. Ocampo

Energy & Business Development Consultant

mars_ocampo@yahoo.com

More »


New Best Entrant Project Finance Model with VAT – landfill, diesel, coal, oil, natgas

April 24th, 2010 2 Comments   Posted in financial models

New Best Entrant Project Finance Model with VAT – landfill, diesel, coal, oil, natgas

A new “Best New Entrant” project finance model with value added tax (VAT) has been developed to analyze which of the following technology such as landfill gas to power, diesel engine, coal thermal (pulverized, CFB), oil thermal or natural gas CCGT is the best new entrant providing overall effectiveness in terms of first year tariff and equity returns.

To order, simply proceed to the ENERGY DATA page of this blog and select large scale models, then order via PayPal the desired model.

Alternatively, you may confirm your order via email, then I will email you my local bank details where you may send via wire transfer the payment.

Upon receipt via PayPal or my local bank account, I will then email you two copies of the ordered models.

Regards,

Marcial Ocampo

Energy & Business Development Consultant

More »

New Summary Report Format for Project Finance Model for Feed-in Tariff

April 22nd, 2010 1 Comment   Posted in feed-in tariff

New Summary Report Format for Project Finance Model for Feed-in Tariff

A new and improved summary report format for the state-of-the-art project finance model has been developed and ready for implementation in all small scale, large scale and renewable energy project finance models.

Please refer to the sample format below and the author would appreciate receiving your valuable feedback.

Two formats are available: one for renewable energy projects without fuel requirement (mini-hydro, wind, solar) and those with fuels (biomass, cogen and other fossil-fired power plants such as diesel, coal, oil and natural gas).

This is to enable presentation of the plant heat rate and conversion efficiency from fuel energy to electrical energy as well as lube oil consumption rate.

More »