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Input Data for Calculating Feed-in Tariff (FiT) for Renewable Energy

March 10th, 2010 Posted in feed-in tariff, financial models

Input Data for Calculating Feed-in Tariff (FiT) for Renewable Energy

Your energy technology selection expert and author of this blog has standardized the input data requirements for calculating feed-in tariff (FiT) for Renewable Energy (RE) sources such as biomass, cogen, mini-hydro, wind and solar.

Please refer to the snippet of the input worksheet below.

Thanks,

Marcial T. Ocampo

Energy Technology Selection & Business Development Consultant

———————————

Instructions for Running this Project Finance Model (by Marcial T. Ocampo) – US Dollar Model Licensed for: National Renewable Energy Board
Enter the required data starting from the first step to the last step, then converge the model by pressing ctrl + u press ctrl + u to converge model (DCF IRR)
0)

1

Select DCF IRR (1) or RORB (0) Blue cells are input fields for updating used

0

Include Carbon Emission Credits (1), no CER (0) These cells are case switches used

0

Include Depreciation (1), no depreciation (0) used
1)

3

Define the NPV and return IRR to be used (1-3). used

0

NPV-ROI return on investment (100% equity, 0% debt) – project cost versus cash flow

0

NPV-ROE return on equity (say 30% equity, 70% debt) – equity portion of project cost versus cash flow

1

NPV-FC return on equity (say 30% equity, 70% debt) – equity portion of project cost versus dividends flow (free cash) – default

47.00

Exchage Rate, PhP / US$ used
2)

5.00%

RP CPI Philippine escalation rate, % p.a. used

2.50%

US CPI US escalation rate, % p.a. used

3)

2009

Define the end of construction period (year 0). It assumes everything has been constructed and finished at the end of this year (0) and will operate on following year (1). used
4) Rated Capacity and Losses

Unit Capacity

No. of Units

34.000

Rated Capacity (RC), MW

17.000

2

used

10.00%

Power Plant Own Use used

3.00%

Transmission Line Losses (10 km line) Select red cells below for T/L losses used
Transmission Line Losses

Line Voltage

69

kV

km

1.609

Power

34,000

kW

mile

1

Length

10.00

km

feet

5280

Power Factor

0.85

lag

Total Line Current

334.696

A

resistivity of Al

20

17.002

ohm-cmil/ft

Line Current/Circuit

111.565

A

25

17.345

ohm-cmil/ft

No. of Circuit

3

Transmission Line

Cost of T/L

Cost of T/L

With 50%

Used

Conductor Type

Ampacity

Resistance (ohms/mile)

Loss (3-phase)*

$ / km

PhP / km

allowance

ACSR (MCM)

A

25 deg.C

50 deg.C

90 deg.C

kW

%

0

336

530

0.278

0.306

0.351

632.29

1.860%

$25,532

1,200,000

2.79%

used

0

795

900

0.119

0.138

0.168

302.59

0.890%

$29,787

1,400,000

1.33%

used

AAC (MCM)

A

20 deg.C

25 deg.C

90 deg.C

kW

0

336

495

0.267

0.273

0.343

617.57

1.816%

$34,043

1,600,000

2.72%

used

1

789

855

0.114

0.116

0.146

263.00

0.774%

$42,553

2,000,000

1.16%

used

USED

0.774%

$42,553

2,000,000

1.16%

used
5) Capacity Factor (365 days, 5 year cycle)

1

2

3

4

5

Average

56

Planned Overhaul, days (8 wks)

56

28

Regular Maintenance, days (4 wks)

28

28

28

28

0.10%

Economic S/D, % of CD

0.365

0.365

0.365

0.365

0.365

0.50%

Deactivated S/D – External, % of CD

1.825

1.825

1.825

1.825

1.825

8.00%

Forced Outage – Internal, % of CD

29.2

29.2

29.2

29.2

29.2

90.00%

Load Factor, % of DC

59.39

59.39

59.39

59.39

87.39

64.99

vary load factor to hit 75%

75.00%

Capacity Factor, % of RC

305.61

305.61

305.61

305.61

277.61

300.01

CD = Calendar Days (365 days per year)

84.89%

84.89%

84.89%

84.89%

77.11%

83.34%

RC = Rated Capacity, MW

90.00%

90.00%

90.00%

90.00%

90.00%

90.00%

DC = Dependable Capacity, MW (after degradation)

76.40%

76.40%

76.40%

76.40%

69.40%

75.00%

used
6) Define overhaul cycle and capacity degradation

0.50%

Normal, % p.a. normal degradation rate used

-2.00%

Overhaul, % p.a. degradation recovered after overhaul not-used

5

Overhaul Cycle, yr overhaul cycle not-used

80.00%

Recovery, % fraction of normal degradation recovered during overhaul not-used

7) Define overhaul cycle and heat rate degradation

0.50%

Normal, % p.a. normal degradation rate used

-2.00%

Overhaul, % p.a. degradation recovered after overhaul not-used

5

Overhaul Cycle, yr overhaul cycle not-used

80.00%

Recovery, % fraction of normal degradation recovered during overhaul not-used
8)

3

Plant Heat Rate (enter type of engine, 1-3)

1=CCGT

2=Diesel

3=Thermal

GT Gas Turbine Output (1 / 3)

33.33%

40.00%

ST Steam Turbine Input (2 / 3)

66.67%

BE Boiler Efficiency at 1% cont. BD

85.00%

80.00%

STE Steam Turbine Efficiency

40.00%

35.00%

ME Mechanical Drive / Clutch Efficiency

99.00%

97.00%

95.00%

GE Generator Efficiency

98.00%

96.00%

94.00%

OE

25.00%

Overall Efficiency=(GT+ST*BE*STE)*ME*GE

54.33%

37.25%

25.00%

used
Plant Heat Rate at 100% eff. (3600 / 1.05506), Btu/kWh

3412.12822

PHR Plant Heat Rate, Btu / kWh = 3412/ OE

6,280

9,160

13,649

0

0

1

9) Define fuel properties

GHV, Btu/lb

NHV, Btu/lb

GHV / NHV

kg / Liter

Btu/liter

Reference

$/MMBtu

PhP / liter 2009

0.00%

Natural Gas (Malampaya Gas) – main fuel

22,129

20,249

1.093

2009

$GJ

8.628

9.10

405.52

PhP/GJ not-used

0.00%

Diesel Oil – backup fuel (gas pipeline downtime)

19,650

18,453

1.065

0.8448

36,597

46.44

17.44

30.00

PhP/liter not-used

0.00%

Low Sulfur Fuel Oil (LSFO – 1% S) – boiler fuel

18,400

17,449

1.055

0.9659

39,181

35.97

12.62

23.24

PhP/liter used

0.00%

Bunker Fuel Oil (BFO – 3% S) – boiler fuel

19,670

18,565

1.060

0.8916

38,664

34.84

12.39

22.51

PhP/liter not-used

0.00%

Coal (Lignite, Bituminous, Anthracite) – thermal

10,000

9,475

1.055

$85.00

3.86

4.00

PhP/kg not-used

100.00%

Biomass (Solid Waste, Woodwaste, Landfill Gas, Biogas)

4,000

3,463

1.155

8.70%

4.88

2.02

PhP/kg used

Lube Oil

0.8500

232.00

149.87

PhP/liter not-used

3600

kJ/kWh

2.2046

lb/kg

1.05506

kJ/Btu used

1000

kg/MT

used
10) Lube Oil Consumption

0.50%

Normal, % p.a. normal degradation rate not-used

-2.00%

Overhaul, % p.a. degradation recovered after overhaul not-used

5

Overhaul Cycle, yr overhaul cycle not-used

80.00%

Recovery, % fraction of normal degradation recovered during overhaul not-used

0.254

Ideal Lube Oil Consumption, g/kWh not-used
11)

0

Escalate fuel, lubes, tariff and O&M costs? (1=yes, 0=no)

Used

3.00%

Natural Gas (Malampaya Gas) – main fuel

0.00%

not-used

3.50%

Diesel Oil – backup fuel (gas pipeline downtime)

0.00%

not-used

2.50%

Low Sulfur Fuel Oil (LSFO – 1% S) – boiler fuel

0.00%

biomass price is tied-up to LSFO price used

2.00%

Bunker Fuel Oil (BFO – 3% S) – boiler fuel

0.00%

not-used

2.00%

Coal (Lignite, Bituminous, Anthracite) – thermal

0.00%

not-used

2.50%

Biomass (Solid Waste, Woodwaste, Landfill Gas, Biogas)

0.00%

not-used

5.00%

Lube Oil

0.00%

not-used

12)

% p.a.

Escalation rates for tariff and O&M costs

Used

Foreign (US)

US CPI

Local (RP)

RP CPI

3.25%

Purchase of chemical materials

0.00%

70.00%

2.50%

30.00%

5.00%

variable O&M used

3.25%

Utilities (fuel, lubes, electricity, water)

0.00%

70.00%

2.50%

30.00%

5.00%

variable O&M used

3.25%

Maintenance of the installation

0.00%

70.00%

2.50%

30.00%

5.00%

variable O&M used

4.25%

Personnel expense

0.00%

30.00%

2.50%

70.00%

5.00%

fixed O&M used

4.25%

Land lease, rent

0.00%

30.00%

2.50%

70.00%

5.00%

fixed O&M used

4.25%

Taxes, Insurance, services, and others

0.00%

30.00%

2.50%

70.00%

5.00%

fixed O&M used

4.25%

Transport

0.00%

30.00%

2.50%

70.00%

5.00%

fixed O&M used
13) Define electricity sales & revenues

Factor

Adjustment

70.00%

Electricity sales to DU, MWh

1.000

0.00%

discount price to direct customers (e.g. -10%) not-used

20.00%

Electricity sales to NPC, MWh

1.000

0.00%

reference price to national grid (e.g. 0%) not-used

10.00%

Electricity sales to WESM, MWh

1.000

0.00%

wholesale spot market price (e.g. +15%) not-used

100.00%

Total must add to 100%

000 US$

Byproduct Sales

PhP/year

Escalation

0

Initial amount of sales of by-products, ‘000 US$

0

0.00%

used

0

Other operating income from the plant, ‘000 US$

0

0.00%

used

for cogen only

for biomass

14)

months

Define working capital for initial project cost (months)

000 $/year

Working Capital

PSMA

Paul Breeze

2

Expenses from biomass purchase

14,871

2,479

not-used

used

2

Purchase of chemical materials

3,327

555

variable O&M

0.700

PhP/kWh

0.00520

$/kWh used

3

Utilities (fuel, lubes, electricity, water)

0

0

used

3

Maintenance of the installation

4,021

1,005

fixed O&M

0.846

PhP/kWh

0.4300

$/kW/year used

3

Personnel expense

0

0

used

1

Land lease, rent

0

0

land lease from NorthWind used

1

Taxes, Insurance, services, and others

0

0

ha

PhP

PhP/yr

$/yr

used

1

Transport

0

0

100

7,500

750,000

15,957

used
Total working capital

22,219

4,038

15)

Total Regulatory Expenses

1.00%

Special Privilege Tax – 2% of Electricity Revenue used

1.50%

Special Realty Tax – 2.5% of Depreciated Project Cost used

0.01

DOE 1-94 : 0.01 PhP/kWh sales PhP/kWh sales used
16) Define corporate income tax rate and income tax holiday

10%

Corporate income tax rate (% of taxable income) used

7

Income tax holiday (ITH), years used
17) Expenses not eligible for income tax deduction

sample data

0.00%

Profit Sharing of income after tax

5.00%

not used used

0

Social Benefit Fund – Host Community per month

10,000

not used used
18) Calculation of Working Capital Needs (WCN)

3.00

Cash needed for operations (+) months of expenses used

1.00

Customers / Receivables (+) months of revenue used

2.00

Stocks / Inventory (+) months of fuel & chemicals used

1.00

Suppliers / Payables (-) months of payables used
19)

47.00

Estimate all-in capital cost

check variance

PhP/sqm

sqm/ha

$4

Initial investment in land (10 PhP/sqm) x (10,000 sqm/ha)

$2,128

68

ha 145

10

10000

used
Freight on Board = FOB USA = $/kW

$1,900

34.000

MW 64,600 used
Ocean Freight = FRT = 5% x FOB

5%

3,230

used
Insurance = INS = 1% x FOB

1%

646

used
Cargo, Insurance & Freight = CIF = FOB + FRT + INS

68,476

used
Value Added Tax = VAT = 12% x CIF

12%

8,217

used
Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT)

0%

0

used
Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty

76,693

used
Local Freight Cost = LFC = 3% x CIF

3%

2,054

used
Delivered Cost at Site = DCS = DPLC + LFC

78,747

used
Installation Cost = IC = 5% x FOB

5%

3,230

used
Transmission line cost 69 kV (2,000,000 PhP/km) = T/L

$42,553

10.0

425.53

used
Total EPC = DCS + IC + T/L

82,402.93

used
Contingency (10%) = EPC x 10%

10%

8,240

used
Documentary Stamps (1%) = EPC x 1% = DS

1%

824

used

$2,690

Total Fixed Assets (EPC + Contingency + DS)

91,467

used
Depreciation term (years)

salvage value

10.00%

4,116

20

91,612

used
Development costs (modeler)

0.50%

458 used
Other Costs including taxes, contingencies

0.00%

used
Carbon Emission Registration & Consultancy used

$13

Initial investment in capitalized expenses 4,496

458

used
Amortization term (years)

salvage value

10.00%

202

20

used
Working Capital: used

0.239

Working capital (adjustments for DSCR = 1.1)

1.100

1.339

used
Expenses from biomass purchase

2,479

used
Purchase of chemical materials

555

used
Utilities (fuel, lubes, electricity, water)

0

used
Maintenance of the installation

1,005

used
Personnel expense

0

used
Land lease, rent

0

used
Taxes, Insurance, services, and others

0

used

$119

Transport 4,038

0

96,108

used
Interest During Construction: used
Dev’t fees (loan arranger)

0.50%

481 used
Front end fees (loan arranger)

0.50%

481 used

$466

Commitment fees (bank)

0.50%

481 used
Interest During Construction (bank) – 36 months

18

10.00%

14,416

15,858

used
Amortization term (years)

salvage value

10.00%

714

20

used

$3,293

Total Investment (land, fixed, capitalized expenses, working capital) 111,966 used

20) Taxes, Insurances, Benefits & Regulatory Costs based on 47.00 PhP/US$
Real Property Tax – Land

1.60%

of land NOTE: Differentiate between one time, cyclic (every 2 or 5 years) and recurring (annual) not-used
Real Property Tax – PPE

1.60%

of fixed assets and vary the formula in the Main worksheet accordingly. not-used
Real Property Tax – Buildings

0.80%

of building For simplicity in this model, they are assumed to be annual fees to be conservative. not-used
Land Lease & ROW

0.00

US$/MT coal not-used
Property Insurance – PPE

0.78%

of fixed assets not-used
Property Insurance – Building

0.78%

of building not-used
Business Interruption Insurance

0.56%

of previous year’s revenue not-used

of Capital

Special Education Fund – benefits to host community

1.00%

of land not-used

0.277%

SEC Registration & Fees

310.15

Securities & Exchange Commission (certificate of registration) not-used
BIR Registration & Fees

11.28

Bureau of Internal Revenue (registration of TIN, VAT) not-used

0.007%

DENR Permits & Fees

7.84

Department of Environment & Natural Resources (EIS, ECC) not-used
Discharge Fee (BOD, TSS) – DENR

0.00

water pollution discharge permit (4 wastes at 600 each) not-used

0.028%

EMB Permits & Fees

31.35

Environment Management Bureau (air quality) not-used
NWRB Permits & Fees

370.56

National Water Resources Board (water use permit) not-used
PNRI Permits & Fees

125.53

Philippine Nuclear Research Institute (radioactive material license) not-used
ERC Registration & Fess

31.91

Energy Regulatory Commission (certificate of compliance, authority to operate) not-used

0.015%

DOLE Permits & Fees

16.79

Department of Labor & Employment (permit to operate pressurized vessels) not-used
DTI Permits & Fees

0.00

Department of Trade & Industry (registration of business name, with SEC now for corporation) not-used

0.142%

LGU Registration & Fees

158.99

Local government units (barangay, municipal, provincial, regional) not-used

0.002%

NTC Registration & Fees

2.24

National Telecommunication Commission (radio station permit) not-used
BOC Registration & Fees

106.38

Bureau of Customs (accreditation and registration) not-used
PPA Registration & Fees

21.28

Philippine Port Authority (permit to operate shore line facilities) not-used
ATO Registration & Fees

277.66

Air Transportation Office (height clearance permit for smoke stack) not-used
PDEA Registration & Fees

63.83

Philippine Drug Enforcement Agency (essential chemicals commodity permit) not-used
BOI Registration & Fees

95.74

Board of Investment (certificate of registration) not-used
DOE Permits & Fees

17.02

Department of Energy (authority to import, certificate of registration) not-used
Local Business Taxes (1/2 of 1% of GR)

0.00%

of gross revenue not-used
National Franchise Taxes (1/2 of 1% of GR)

0.00%

of gross revenue not-used
Total Taxes, Insurances, Benefits & Regulatory Costs not-used
21) Cost of debt (loan interest)

8.00%

Reference interest rate (Libor or other)

12

loan term used

2.00%

Spread

18.00

grace period (construction period) used

10.00%

Interest rate of debt

0

loan amortization method (1 = constant principal repayment, 0 = declining balance method) used
22) Capital Structure (equity & debt)

16.00%

% to be financed by capital

30.00%

Equity IRR

used

0.00%

% to be financed by non refundable subsidy

0.00%

Subsidy

used

10.00%

% to be financed by debt

70.00%

Debt Interest

used
Initial amount of capital

11.80%

WACC

23) Debt Service Reserve Fund

6

months of debt service used

4.00%

DSRF Income -interest on Foreign Currency Deposit used

7.50%

Withholding Tax on Foreign Currency Deposit used

0.30%

DSRF Expense – withholding tax used
24) Equity Structure (shareholder contribution)

planned

Annual dividend payable

actual

60.00%

Investor 1 used

20.00%

Investor 2 used

20.00%

Investor 3 used
used
25) Your done.  Now converge the model by pressing ctrl + u
26) Print the reports as required

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