Feed-in Tariff Calculator – from simple RP MTO formula to project finance model
Feed-in Tariff Calculator – from simple RP MTO formula to project finance model
Yes, you are right. A feed-in tariff calculator using the modified US NREL formula for levelized cost of energy (LCOE) or levelized cost of electrity is available from you Energy Technology Expert – Marcial Ocampo. (Please refer to my previous articles on simplified formula for LCOE.)
In addition, we prepared a more sophisticated project finance model to calculate the feed-in tariff using the discounted cash flow internal rate of return method (DCF IRR). More »
Marcial Ocampo – Energy Technology Expert – CV and Company Profile
PERSONAL INFORMATION:
Name : MARCIAL T. OCAMPO
Email: mars_ocampo@yahoo.com
Web: www.energytechnologyexpert.com
http://ph.linkedin.com/in/ocampomarcial
EDUCATIONAL BACKGROUND:
Elementary : Dologon Laboratory School
Musuan, Bukidnon
1958 – 1964
Valedictorian
High School : San Sebastian College
Claro M. Recto, Manila
1964 – 1968
Salutatorian
College : B. S. Chemical Engineering
University of the Philippines, Diliman, Quezon City
1968 – 1973
2nd Place (87.75%) – Chemical Engineering Board Exam, 1973
Post Graduate : M. S. Chemical Engineering
University of the Philippines, Diliman, Quezon City
Thesis: “The Assimilative Capacity of Some Rivers in the Philippines, an LP Model”
1974 – 1978
M. S. Combustion and Energy
University of Leeds, United Kingdom
Thesis: “The Performance and Emission Characteristics of a Methanol-Fueled Spark Ignition Engine”
1979-1980 More »
Tags: Company Profile, Consultancy Services, CV, Dams Management & Safety, economic and financial status of biofuels, energy technology expert, Feasibility Study for a Coal-fired Power Plant, FEASIBILITY STUDY OF A GREENFIELD NATURAL GAS-FIRED POWER PLANT, feed-in tariff, Feed-in Tariff Project Finance Model, Impact of the New Renewable Energy Law and its IRR on Electricity Price, Marcial Ocampo, Municipal Solid Waste to Diesel, New Energy Plan and Climate Change Program, power generation technology, Projects, Purchase of a Distribution Utility, waste to energy
Optimal Load Dispatch Model for an Electricity Grid – linear programming (LP) model
Optimal Load Dispatch Model for an Electricity Grid – linear programming (LP) model
An optimal load dispatch model for the Luzon, Visayas and Mindano island grids of the Philippines has been prepared by your energy technology selection and business development expert.
Using linear programming techniques, an optimal load dispatch problem has been prepared in an excel spreadsheet (xls format) which the user can modify and expand and update input data for his particular electricity grid to be analyzed.
This model is a must for regulators in order that future capacity expansion studies are optimized to minimize generation cost and therefore the cost of electricity. Power plant developers and investors will likewise benefit from this model in order that estimates as to the desirability of a new capacity investment will be made at the drawing board before the actual power plant is constructed. It will provide estimates on the level of dispatch a new power plant will expect given the existing power generation mix and incremental (variable) O&M costs.
Regards,
Marcial Ocampo
Energy Technology Selection and Business Development Consultant
Optimal Load Dispatch and Linear Programming Modeler More »
Model for Calculating Power Plant Emissions and outsourcing emission calculations
Calculating Power Plant Emissions for sale and outsourcing emission calculations
A spreadsheet model for calculating power plant emissions has been developed by your energy technology selection expert.
The calculation procedure is straight forward. The user inputs the ultimate (elemental) fuel analysis (%C, %H, %S, %O, %N, % moisture, % ash), excess air ratio (% excess air of % excess O2 in the flue gas) and a flue gas material balance will yield the wet and dry gas analysis of the flue gas (%CO2, % H2O, %SO2, %O2, %N2). Products of partial combustion (e.g. CO) and NOx (NO2, N2O) are not covered by this model since they are a factor of dissociation reactions and require complex equilibrium models.
If the fuel has substantial Sulfur and it needs to be removed (scrubber, limestone addition), the model will calculate the minimum sulfur removal efficiency that needs to be attained by the equipment to meet environmental standards (as %SO2, as ppm SO2, as mg SO2/normal cubic meter, as gram SO2 per kWh, etc).
Please email me your exact problem, input data and expected outputs to be calculated so I may be able to respond to your needs. The cost of the model and any customization works would have to be negotiated based on your specifications.
Regards,
Marcial Ocampo
Energy Technology Selection and Business Development Consultant
mars_ocampo@yahoo.com
energytechnologyexpert@gmail.com More »
Tags: power plant emissions
Feed-in Tariff Calculation Models for sale – biomass, cogen, mini-hydro, wind, solar and ocean thermal energy conversion (OTEC)
Feed-in Tariff Calculation Models for sale – biomass, cogen, mini-hydro, wind, solar and ocean thermal energy conversion (OTEC)
A project finance model for calculating feed-in tariff to be paid to renewable energy developers to recover their cost of capital, generation cost and provide for reasonable profit using the DCF IRR method has been prepared for the National Renewable Energy Board (NREB) of the Philippines.
Thus, given the renewable energy (RE) capacity expansion plan (capacity, generation), an estimate on the annual budget to be paid to RE developers could be prepared.
The FiT model calculates the first year tariff and the levelized selling price (tariff), levelized cost of energy and generation (LCOE), and levelized profit, which is similar to the proforma income statement presentation.
The user simply updates an input sheet to enter the case input data and converges the model by pressing a macro that will vary the first year tariff so that the interplay of revenue (FiT) less generation costs (fixed O&M, variable O&M, fuels and lubes, regulatory costs, depreciation, interest on loan) will result in an equity discounted cash flow internal rate of return (equity DCF IRR) equal to the minimum investor returns.
Interested consultants, regulators, project developers may request for demo (protected) excel copies for their appreciation of the inputs, calculation procedures, reports, graphics and summaries, and once they are convinced that it is useful, they may place an order at the ENERGY DATA page of this blog, and remit payment via PayPal for the desired model.
Alternatively, you may place an order via email and I will provide you with my bank details to remit the payment via wire transfer. Once confirmed that my PayPal or local bank account has received payment, I will then email two (2) excel (in xls format) file copies for your file.
Regards,
Marcial Ocampo
Energy Technology Selection and Business Development Consultant
mars_ocampo@yahoo.com
energydataexpert@gmail.com More »
Feed-in Tariff Models for Renewable Energy – biomass, cogen, mini-hydro, wind, solar and ocean thermal (OTEC)
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
How to reduce electricity cost in the Philippines – response to latest MERALCO price increase
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
New Best Entrant Project Finance Model with VAT – landfill, diesel, coal, oil, natgas
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
New Summary Report Format for Project Finance Model for 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.
Free Trial of Project Finance Model for Renewable Energy Feed-in Tariff Calculation
Free Trial of Project Finance Model for Renewable Energy Feed-in Tariff Calculation
The energy expert and author of this blog is inviting his dedicated viewers to email him or comment on this blog.
The first 20 viewers who will email him for the next 48 hours starting this day of March 25, 2010 at 24:00 hours (12 midnight) Philippine Time will receive a demo copy of his famous project finance models for calculating feed-in tariff. If he is satisfied, he may order the working copy by proceeding to the DONATE button or to the ENERGY DATA page of his blog.
Feed-in tariff is a regulatory mechanism developed to encourage the development and growth of Renewable Energy by encouraging RE power generation technologies such as biomass energy, mini-hydro, wind, solar and ocean energy.
It is a fixed tariff calculated using the discounted cash flow internal rate of return (DCF IRR) which compares the equity portion (usually 30%) of the all-in project cost (land, equipment, project development, working capital, interest during construction) to the expected net cash flow.
It is usually a fixed tariff for a minimum period of 15 years that allows the RE developer to recover the cost of capital (equity and debt), allowable generation cost, and provide reasonable profit at the minimum equity returns needed by investors.
What are you waiting for. Email me now and be the among the lucky first 20 viewers to receive the demo copy.
Regards,
MARCIAL T. OCAMPO
Energy Technology & Business Development Consultant
Email: mars_ocampo@yahoo.com
Learn Project Finance and Project Finance Modeling the easy way and make Feasibility Studies
Learn Project Finance and Project Finance Modeling the easy way and make Feasibility Studies
That is right!
Your favorite energy technology selection and business development consultant is now offering one-on-one iternet-based course on project finance and project finance modeling in order to make excellent feasibility studies for your own projects or clients if you are a consultant.
Just email Marcial Ocampo, your energy expert, to guide you to a step-by-step one-on-one modeling of any business concept, define the data and information requirements, go over the power plant technology or process technology, represent it in mathematical form, conduct market study to establish demand, perform projections on supply and demand, prepare the material and energy balances, prepare the income and expense statement, loan amortization table, depreciation table, interest during construction table, all-in project cost (land, FOB, freight, insurance, VAT, customs duty, local transport, installation, contingency, project development cost, working capital and interest during construction), cash flow statement, project IRR, project payback, equity IRR, equity payback, dividends (free cash) flow, balance sheet, and statement of cash flows. More »
Input Data for Calculating Feed-in Tariff (FiT) for Renewable Energy
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 More »
Simplified Project Finance Model for Feed-in Tariff (FiT) Calculation
Simplified Project Finance Model for Feed-in Tariff (FiT) Calculation
I simplified the model to its bare functionality and removed the financial ratios section.
The model now has the barest functionality for the feed-in tariff calculation, namely: More »
Special Promo (70% discount) for Project Finance Models Extended for the Whole February 2010
Special Promo (70% discount) for Project Finance Models Extended for the Whole February 2010
The author of this blog is indeed very happy for the response and interest on the project finance models that has been offered for sale in the internet thru either PayPal (using the DONATE button), or thru the DATA page for small-scale and large-scale project finance models. The discount is further increased from the previous 50% to 70% to keep the momentum going for this marvelous special promo.
Thus for February 2010, a 70% discount on large-scale project finance models will be offered to all our valued clients. The price of small-scale project finance models, however, remain to enable the author continue his pioneering work. More »
Preliminary Feed-in Tariff (FiT) for Renewable Energy Sources in the Philippines – Biomass, Mini-Hydro, Wind and Solar
Preliminary Feed-in Tariff (FiT) for Renewable Energy Sources in the Philippines – Biomass, Mini-Hydro, Wind and Solar
Last January 20-21, 2010, the Philippine Department of Energy (DOE) and the National Renewable Energy Board (NREB) and in consultation with the Renewable Energy (RE) Alliance, conducted a three day seminar at the Subic International Hotel at the Subic Free Port, Province of Zambales, Philippines.
With the recent passage last year (2009) of the Philippine Renewable Energy Law (R.A. 9513) and its Implementing Rules and Regulations (DC 2009-05-0008), a Feed-In Tariff mechanism has to be established in the country within a year (February 2010). In particular, a feed-in tariff scheme which provides an obligation to the power industry to source RE generation at a guaranteed fixed price over a period of time, which should not be less than a period of 12 years (15 years per ERC), to be determined by the Energy Regulatory Commission (ERC). More »
Project Finance Model for Determining the “Best New Entrant” Power Generation Technology
Project Finance Model for Determining the “Best New Entrant” Power Generation Technology
In proposing a new power plant project to address a supply deficiency problem in a given grid, it is important for the project proponent and developer to demonstrate to the investors as well as to the regulator and end-users that the proposed power generation technology solution is the “best new entrant” that will address the power deficiency and provide the cheapest, reliable and stable electricity service. More »
Available Project Finance Models with CDM and Renewable Energy Law Incentives
Available Project Finance Models with CDM and Renewable Energy Law Incentives
I just finished polishing all my project finance models for the following power generation technologies and are now available for actual runs by project developers, researchers and individuals doing business development. Using the models below will allow user to determine as quickly as possible the “best new entrant” technology applicable to a particular location given the fuel and energy resource available and the electricity tariff prevailing in the area. More »
Tags: biomass, CDM, CFB, circulating fluidized bed, coal thermal, cogen, cogeneration, combined cycle GT, diesel & RE hybrid, diesel engine, for energy storage, fuel cells, gas thermal, geothermal, incremental economic analysis, Kyoto Protocol, mini hydro, ocean thermal, ocean wave, oil thermal, project finance model, simple cycle GT, solar PV, solar thermal, tidal power and nuclear, wind farm
Project Finance Model for Generic Diesel & RE Hybrid Power Plant
Project Finance Model for Generic Diesel & RE Hybrid Power Plant
The determination of optimal combination of diesel and renewable energy (RE) hybrid power plant is sometimes a difficult exercise for the project developer and EPC contractor.
After an inventory of the available fuel and RE resources in a particular location and application, the next step is to determine thru project finance modeling the economics of a stand alone diesel generator power plant (usually a compression ignition diesel engine running on expensive diesel fuel, gas oil, light fuel oil and bunker fuel oil), and considering a hybrid configuration using biomass resources (biomass gasification with diesel engine, landfill methane with diesel engine, sewage digestion or biogas with diesel engine, municipal solid waste with steam turbine generator, biomass direct combustion with steam turbine generator, biomass co-firing with fossil coal and oil, mini-hydro, wind farm and solar PV).
How to Optimize Power Plant Design and Configuration (technology, capacity, efficiency, location)
How to Optimize Power Plant Design and Configuration (technology, capacity, efficiency, location) – see download file for input data
Optimizing the overall project concept during the plant feasibility study and detailed engineering study is a common problem faced by project developers and EPC contractors. The question commonly asked by project owners from project developers and designers are:
(1) What engine/manufacturer should be considered (e.g. Siemens, Westinghouse, General Electric, Mitsubishi, Alstom, etc)? More »
Project Finance Model for Incremental Economic Analysis with CDM
Project Finance Model for Incremental Economic Analysis with CDM
Incremental economic analysis is the fundamental method of analysis in comparing two or more competing alternatives in order to determine the feasibility of undertaking incremental investments considering the incremental benefits that may be derived. It is useful in analyzing equipment up-grading, replacement, systems improvement and fuel switching.
During implementation of a project feasibility study for a natural gas pipeline that will serve an anchor load 250-500 mw natural gas-fired combined cycle gas turbine (CCGT), it was felt that additional market for the excess Malampaya natural gas (300 mw surplus plus banked gas for sale) needs to be developed to improve the economics of the pipeline. More »
