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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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