New Summary Report Format for Project Finance Model for Feed-in Tariff
April 22nd, 2010 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.
To place an order, click the ENERGY DATA page of this blog and place an order for small scale, large scale and renewable energy project finance models.
Regards,
Marcial Ocampo
Energy & Business Development Consultant
a) Format for RE power projects without fuels (mini-hydro, wind, solar):
| Executive Summary | National Renewable Energy Board | |||||||
| Mini-Hydro power generation plant | Feed-in Tariff (FiT) Calculation Procedure | |||||||
| Investors’ Returns: | NPV-FC | Generation and Sales: | ||||||
| Equity IRR (% p.a.) | 16.00% | Capacity Factor (% of rated) | 50.00% | |||||
| Payback Period (years) | 6.50 | Days per year | 365 | |||||
| Hours per day | 24 | |||||||
| Uses and Sources of Funds During Construction: | 000 US$ | $ / kW | Gross Generation (MWh/year) | 43,800 | ||||
| Power Plant Own Use (%) | 1.000% | |||||||
| Uses of Funds: | 438 | |||||||
| Net Generation (MWh/year) | 43,362 | |||||||
| Initial investment in land (10 PhP/sqm) x (10,000 sqm/ha) | 42.55 | $4 | Transmission Line Loss assumed (%) | 3.000% | ||||
| 1,301 | ||||||||
| Freight on Board = FOB USA = $/kW | 13,000.00 | $1,300 | Net Sales (MWh/year) | 42,061 | ||||
| Ocean Freight = FRT = 5% x FOB | 650.00 | |||||||
| Insurance = INS = 1% x FOB | 130.00 | Transmission Line: | ||||||
| Cargo, Insurance & Freight = CIF = FOB + FRT + INS | 13,780.00 | Line Voltage | 69 | kV | ||||
| Value Added Tax = VAT = 12% x CIF | 1,653.60 | Power | 10,000 | kW | ||||
| Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) | 0.00 | Length | 20.000 | km | ||||
| Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty | 15,433.60 | Power Factor | 0.850 | lag | ||||
| Local Freight Cost = LFC = 3% x CIF | 413.40 | No. of Circuit | 3 | |||||
| Delivered Cost at Site = DCS = DPLC + LFC | 15,847.00 | Transmission Line Loss calculated (%) | 0.455% | |||||
| Installation Cost = IC = 5% x FOB | 650.00 | Cost per km: | 2,000,000 | PhP | ||||
| Transmission line cost 69 kV (2,000,000 PhP/km) = T/L | 851.06 | 42,553 | $ | |||||
| Total EPC = DCS + IC + T/L | 17,348.06 | Capital and O&M Cost Assumptions: | ||||||
| Contingency (10%) = EPC x 10% | 1,734.81 | First Year Tariff (PhP/kWh) | 5.0675 | |||||
| Documentary Stamps (1%) = EPC x 1% = DS | 173.48 | Cost per kW FOB USA ($/kW) | 1,300 | |||||
| Total Fixed Assets (EPC + Contingency + DS) | 19,256.35 | $1,926 | Variable O&M ($/kWh): | 0.001 | ||||
| Maintenance of water turbine/generator (spares) | 17.05 | 000 US$ | ||||||
| Capitalized Expenses: | Utilities (fuel, lubes, electricity, water) | 25.58 | 000 US$ | |||||
| Development costs (developer, modeler) | 96.49 | Fixed O&M ($/kW/year) | 0.02 | |||||
| Other Costs including taxes, contingencies | 0.00 | Maintenance of the rest of the plant | 62.50 | 000 US$ | ||||
| Carbon Emission Registration & Consultancy | 30.00 | Personnel expense | 62.50 | 000 US$ | ||||
| Initial investment in capitalized expenses | 126.49 | $13 | Land lease, rent | 37.50 | 000 US$ | |||
| Taxes, Insurance, services, and others | 25.00 | 000 US$ | ||||||
| Working Capital: | Transport | 12.50 | 000 US$ | |||||
| months | ||||||||
| Working capital (adjustment to meet DSCR = 1.1) | 0.00 | Debt Service Reserve Fund: | ||||||
| Expenses for diverted water fee (fuel) | 0.00 | 2 | Months of debt service | 6 | ||||
| Maintenance of water turbine/generator (spares) | 2.84 | 2 | DSRF Income -interest on Foreign Currency Deposit | 4.0% | ||||
| Utilities (fuel, lubes, electricity, water) | 6.39 | 3 | Withholding Tax on Foreign Currency Deposit | 7.5% | ||||
| Maintenance of the rest of the plant | 15.63 | 3 | DSRF Expense | 0.30% | ||||
| Personnel expense | 15.63 | 3 | ||||||
| Land lease, rent | 3.13 | 1 | Taxes and Regulatory Costs: | |||||
| Taxes, Insurance, services, and others | 2.08 | 1 | Special Privilege Tax – 2% | 1.00% | ||||
| Transport | 1.04 | 1 | Special Realty Tax – 2.5% | 1.50% | ||||
| Total Working Capital | 46.74 | $5 | DOE 1-94 : 0.01 PhP/kWh sales | 0.01 | ||||
| Corporate income tax rate (% of taxable income) | 10% | |||||||
| Interest During Construction: | Income tax holiday (ITH), years | 7 | ||||||
| Dev’t fees (developer, loan arranger) | 97.36 | Profit Sharing | 0.00% | |||||
| Front end fees (modeler, loan arranger) | 97.36 | Social Benefit Fund – Host Community | 0 | |||||
| Commitment fees (bank) | 97.36 | |||||||
| Interest During Construction (bank) – 12 months | 3,894.43 | Working Capital Needs: | months | |||||
| Total Legal & Financing Fees and IDC | 4,186.51 | $419 | Cash needed for operations (+) | 3.00 | ||||
| Customers / Receivables (+) | 1.00 | |||||||
| Total Uses of Fund, ’000 US$ | 23,658.64 | $2,366 | Stocks / Inventory (+) | 2.00 | ||||
| Suppliers / Payables (-) | 1.00 | |||||||
| Sources of Fund: | Exchange Rate and Escalation: | 0 | No Escalation | |||||
| Exchage Rate, PhP / US$ | 47.00 | 0.00% | depreciation | |||||
| % to be financed by capital | 7,097.59 | 30.00% | RP CPI (Local) | 5.00% | local escalation | |||
| % to be financed by non refundable subsidy | 0.00 | 0.00% | US CPI (Foreign) | 2.50% | foreign escalation | |||
| % to be financed by debt | 16,561.05 | 70.00% | ||||||
| Total Sources of Fund, ’000 US$ | 23,658.64 | 100.00% | Variable O&M: | weight | 0.00% | variable escalation | ||
| % Local (30%) | 50.00% | 5.00% | ||||||
| Weighted Average Cost of Capital (WACC): | Returns | % Foreign (70%) | 50.00% | 2.50% | ||||
| Equity | 16.00% | 30.00% | ||||||
| Subsidy | 0.00% | 0.00% | Fixed O&M: | weight | 0.00% | fixed escalation | ||
| Debt | 10.00% | 70.00% | % Local (70%) | 50.00% | 5.00% | |||
| WACC | 11.80% | % Foreign (30%) | 50.00% | 2.50% | ||||
| Rated Capacity: | Loan: | |||||||
| Unit Capacity of WTG (MW/unit) | 5.000 | Interest rate of debt, % p.a. | 10.00% | |||||
| No. of TWG (unit) | 2 | Loan term, years | 12 | |||||
| Total Gross Installed Capacity (MW) | 10.000 | Grace period (construction period), months | 24.00 | |||||
| Name | Mini-Hydro power generation plant | National Renewable Energy Board | ||||||
| (C) Copyright 2009 by Marcial T. Ocampo (November 2009) | Feed-in Tariff (FiT) Calculation Procedure | |||||||
| WITH INCENTIVES UNDER RE LAW | ||||||||
| TO ORDER: | http://energytechnologyexpert.com/energy-technology-finance-models/ | |||||||
b) Format for RE power projects with fuels (biomass, cogen):
| Executive Summary | National Renewable Energy Board | |||||||
| BIOMASS PLANT | Feed-in Tariff (FiT) Calculation Procedure | |||||||
| Investors’ Returns: | NPV-FC | Generation and Sales: | ||||||
| Equity IRR (% p.a.) | 16.00% | Capacity Factor (% of rated) | 75.00% | |||||
| Payback Period (years) | 6.34 | Days per year | 365 | |||||
| Hours per day | 24 | |||||||
| Uses and Sources of Funds During Construction: | 000 US$ | $ / kW | Gross Generation (MWh/year) | 65,700 | ||||
| Power Plant Own Use (%) | 10.000% | |||||||
| Uses of Funds: | 6,570 | |||||||
| Net Generation (MWh/year) | 59,130 | |||||||
| Initial investment in land (10 PhP/sqm) x (10,000 sqm/ha) | 42.55 | $4 | Transmission Line Loss assumed (%) | 3.000% | ||||
| 1,774 | ||||||||
| Freight on Board = FOB USA = $/kW | 19,000.00 | $1,900 | Net Sales (MWh/year) | 57,356 | ||||
| Ocean Freight = FRT = 5% x FOB | 950.00 | |||||||
| Insurance = INS = 1% x FOB | 190.00 | Transmission Line: | ||||||
| Cargo, Insurance & Freight = CIF = FOB + FRT + INS | 20,140.00 | Line Voltage | 69 | kV | ||||
| Value Added Tax = VAT = 12% x CIF | 2,416.80 | Power | 10,000 | kW | ||||
| Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) | 0.00 | Length | 10.000 | km | ||||
| Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty | 22,556.80 | Power Factor | 0.850 | lag | ||||
| Local Freight Cost = LFC = 3% x CIF | 604.20 | No. of Circuit | 3 | |||||
| Delivered Cost at Site = DCS = DPLC + LFC | 23,161.00 | Transmission Line Loss calculated (%) | 0.228% | |||||
| Installation Cost = IC = 5% x FOB | 950.00 | Cost per km: | 2,000,000 | PhP | ||||
| Transmission line cost 69 kV (2,000,000 PhP/km) = T/L | 425.53 | 42,553 | $ | |||||
| Total EPC = DCS + IC + T/L | 24,536.53 | Capital and O&M Cost Assumptions: | ||||||
| Contingency (10%) = EPC x 10% | 2,453.65 | Cost per kW FOB USA ($/kW) | 1,900 | |||||
| Documentary Stamps (1%) = EPC x 1% = DS | 245.37 | Variable O&M ($/kWh): | 0.00520 | Year 1 | ||||
| Total Fixed Assets (EPC + Contingency + DS) | 27,235.55 | $2,724 | Purchase of chemical materials (100%) | 132.09 | 000 US$ | |||
| Utilities (fuel, lubes, electricity, water) (150%) | 198.14 | 000 US$ | ||||||
| Capitalized Expenses: | Fixed O&M ($/kW/year) | 0.430 | ||||||
| Development costs (developer, modeler) | 136.39 | Maintenance of the installation (100%) | 1,343.75 | 000 US$ | ||||
| Other Costs including taxes, contingencies | 0.00 | Personnel expense (100%) | 1,343.75 | 000 US$ | ||||
| Carbon Emission Registration & Consultancy | 30.00 | Land lease, rent (60%) | 806.25 | 000 US$ | ||||
| Initial investment in capitalized expenses | 166.39 | $17 | Taxes, Insurance, services, and others (40%) | 537.50 | 000 US$ | |||
| Transport (20%) | 268.75 | 000 US$ | ||||||
| Working Capital: | DSRF Expense | 5.11 | 000 US$ | |||||
| months | Regulatory Costs: | |||||||
| Working capital (adjustment to meet DSCR = 1.1) | 0.00 | Special Privilege Tax – 2% | 115.93 | 000 US$ | ||||
| Expenses from biomass purchase | 127.50 | 2 | Special Realty Tax – 2.5% | 466.73 | 000 US$ | |||
| Purchase of chemical materials (100%) | 22.02 | 2 | DOE 1-94 : 0.01 PhP/kWh sales | 12.20 | 000 US$ | |||
| Utilities (fuel, lubes, electricity, water) (150%) | 49.54 | 3 | Debt Service Reserve Fund: | |||||
| Maintenance of the installation (100%) | 335.94 | 3 | Months of debt service | 6 | ||||
| Personnel expense (100%) | 335.94 | 3 | DSRF Income -interest on Foreign Currency Deposit | 4.0% | ||||
| Land lease, rent (60%) | 67.19 | 1 | Withholding Tax on Foreign Currency Deposit | 7.5% | ||||
| Taxes, Insurance, services, and others (40%) | 44.79 | 1 | DSRF Expense | 0.30% | ||||
| Transport (20%) | 22.40 | 1 | Taxes and Regulatory Costs: | |||||
| Total Working Capital | 1,005.30 | $101 | Special Privilege Tax – 2% | 1.00% | ||||
| Special Realty Tax – 2.5% | 1.50% | |||||||
| Interest During Construction: | DOE 1-94 : 0.01 PhP/kWh sales | 0.01 | ||||||
| Dev’t fees (developer, loan arranger) | 142.25 | Corporate income tax rate (% of taxable income) | 10% | |||||
| Front end fees (modeler, loan arranger) | 142.25 | Income tax holiday (ITH), years | 7 | |||||
| Commitment fees (bank) | 142.25 | Profit Sharing, % of IAT | 0.00% | |||||
| Interest During Construction (bank) – 12 months | 4,267.47 | Social Benefit Fund – Host Community, PhP/month | 0 | |||||
| Total Legal & Financing Fees and IDC | 4,694.22 | $469 | Working Capital Needs: | months | ||||
| Cash needed for operations (+) | 3.00 | |||||||
| Total Uses of Fund, ’000 US$ | 33,144.02 | $3,314 | Customers / Receivables (+) | 1.00 | ||||
| Stocks / Inventory (+) | 2.00 | |||||||
| Suppliers / Payables (-) | 1.00 | |||||||
| Sources of Fund: | ||||||||
| Exchange Rate and Escalation: | 0 | No Escalation | ||||||
| % to be financed by capital | 9,943.20 | 30.00% | Exchage Rate, PhP / US$ | 47.00 | 0.00% | depreciation | ||
| % to be financed by non refundable subsidy | 0.00 | 0.00% | RP CPI (Local) | 5.00% | local escalation | |||
| % to be financed by debt | 23,200.81 | 70.00% | US CPI (Foreign) | 2.50% | foreign escalation | |||
| Total Sources of Fund, ’000 US$ | 33,144.02 | 100.00% | First Year Tariff (PhP/kWh) | 9.4997 | 0.00% | tariff escalation | ||
| Variable O&M: | weight | 0.00% | variable escalation | |||||
| Weighted Average Cost of Capital (WACC): | Returns | % Local (30%) | 50.00% | 5.00% | ||||
| Equity | 16.00% | 30.00% | % Foreign (70%) | 50.00% | 2.50% | |||
| Subsidy | 0.00% | 0.00% | Fixed O&M: | weight | 0.00% | fixed escalation | ||
| Debt | 10.00% | 70.00% | % Local (70%) | 50.00% | 5.00% | |||
| WACC | 11.80% | % Foreign (30%) | 50.00% | 2.50% | ||||
| Loan: | Fuel & Lubes Properties: | Btu/lb | kg/L | % fuel blend | ||||
| Interest rate of debt, % p.a. | 10.00% | Low Sulfur Fuel Oil (LSFO – 1% S) – boiler fuel | 18,400 | 0.9659 | 0.00% | |||
| Loan term, years | 12 | Biomass (Solid Waste, Woodwaste) – per kg | 4,000 | 100.00% | ||||
| Grace period (construction period), months | 18.00 | Lube Oil | 0.8500 | 100.00% | ||||
| Fuel & Lubes Costs & Escalation: | PhP/L | |||||||
| Rated Capacity: | Low Sulfur Fuel Oil (LSFO – 1% S) – boiler fuel | 27.11 | 0.00% | diesel escalation | ||||
| Unit Capacity of WTG (MW/unit) | 5.000 | Biomass (Solid Waste, Woodwaste) – per kg | 0.33 | 0.00% | bunker escalation | |||
| No. of TWG (unit) | 2 | Lube Oil | 174.85 | 0.00% | lube escalation | |||
| Total Gross Installed Capacity (MW) | 10.000 | Plant Heat Rate and Lube Oil Rate: | ||||||
| Plant Own Use (MW) | 1.000 | 10.00% | Diesel Engine Heat Rate (Btu/kWh gross) | 14,835 | 23.00% | thermal efficiency | ||
| Net Capacity (MW) | 9.000 | Lube Oil Consumption Rate (g/kWh) | 0.2535 | not used | ||||
| Name | BIOMASS PLANT | National Renewable Energy Board | ||||||
| (C) Copyright 2009 by Marcial T. Ocampo (November 2009) | Feed-in Tariff (FiT) Calculation Procedure | |||||||
| WITH INCENTIVES UNDER RE LAW | ||||||||
| TO ORDER: | http://energytechnologyexpert.com/energy-technology-finance-models/ | |||||||
One Response to “New Summary Report Format for Project Finance Model for Feed-in Tariff”
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November 20th, 2011 at 3:15 am
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