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Cogeneration (CHP) Biomass Power Project Finance Model

May 8th, 2014 Posted in cogeneration

Cogeneration (CHP) Biomass Power Project Finance Model

A new and powerful tool for analysing the technical and economic viability of cogeneration (combined heat & power) using biomass fuel such as wood chips, agri-wastes, bagasse, wood-wastes is now available in the market to calculate your feed-in-tariff (FIT) rates or IRR and payback periods.

Your technology expert is pleased to announce the availability of a new cogeneration (combined heat & power or CHP) biomass power project finance model.

Be the first to use this powerful tool in analysing your biomass resource potential and convert it to useful energy and power.

The main input and output summary sheet is shown below:

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Project Site Name & Location Cogeneration (CHP)
Renewable Energy Source Biomass
Hours per Year 8760
Timing  
  Construction Period (from FC) (months) 24
  Operating Period (Yrs from COD) 30
  Yrs from base year CPI & Forex (2010) for FIT 4
  Yrs from base year CPI (2012) for CAPEX 1
  Yrs from base year CPI (2012) for OPEX 3
   
Construction Sources and Uses of Funds, $000  
  Uses of Fund:  
    Land $118
    EPC (Equipment, Balance of Plant, Transport, Access Roads) $21,444
    Transmission Line Interconnection Facility $42
    Sub-Station Facility $817
    Development & Other Costs $3,450
    Construction Contingency $1,032
    Value Added Tax $1,905
    Financing Costs $2,680
    Initial Working Capital $2,391
  Total Uses of Fund $33,880
   
  Sources of Fund:  
    Debt $23,716
    Equity $10,164
  Total Sources of Fund $33,880
   
  Construction Unit Costs (US$/kW):  
    EPC Cost $7,148
    Plant Cost (Excluding VAT, Financing, Working Capital) $8,928
    All-in Project Cost $11,293
   
   
Model Check:  
Balance Sheet OK
Foreign Debt Amortization OK
Local Debt Amortization OK
Depreciation OK
Sources and Uses of Funds  OK
Debt-to-Equity Ratio  OK
   
Base Years  
  Base year CPI & Forex for FiT 2010
  Base year CPI for CAPEX 2012
  Base year CPI for OPEX 2012
   
Commercial Operating Date 2014
   

 

Technical and EPC Assumptions Power Heat (net)
Unit Capacity of Plant (MW power/unit) 3.00 12.00
No. of Units (unit), total net 1.0 1.0
Gross Installed Capacity (MW) 3.00 12.00
Net Installed Capacity (MW) 2.50 12.00
Plant Availability Factor, % 93.18%  
Guaranteed Efficiency Factor, % 98.00% 8,000
Allowance for losses & own use, % 16.66% Utilization Ratio
Net Capacity Factor after losses & own use, % 76.10% 105.6%
Net Electrical Output (MWh in 1st Year), heat output 20,000 101,376
Plant Degration, % p.a. (1-20 Yrs) 0.20% % Local Content
Land cost ($000) $113.64 100.0%
Equipment Cost ex BOP, Transport ($000/MW) – pellet $1,013.00  
Equipment Cost ex BOP, Transport ($000/MW) – power $1,500.00 11.4%
Insurance, Ocean Freight, Local Transport – power 4.5% 100.0%
Balance of Plant (BOP), % of Equipment Cost – power 21.0% 100.0%
Transmission Line Distance (km) 1.00  
T/L Cost per km, 69 kV ($000/km) $40.00 100.0%
Switchyard & Transformers ($000) $786.00 100.0%
Access Roads ($000/km) $182.00 100.0%
Distance of Access Road (km) 1.00  
Dev’t & Other Costs (land, permits, etc) (% of EPC) 15.0% 100.0%
VAT on importation (70% recoverable) 12% 100.0%
Initial Working Capital (% of EPC) 11.00% 100.0%
Contingency (% of Total Cost) 4.0% 50.0%
SET NPV (G28) TO ZERO BY VARYING FIT (F30) – ctrl +e Heat cost adj. 0.00
Operating Assumptions 0.94 Equity IRR
  Feed-in-Tariff (PhP/kWh) 6.813 20.0%
  Duration of FiT (Yrs) 20 Project IRR
  Tariff post FiT period (PhP/kWh) 5.000 14.5%
  FiT using Asset Base Methodology (PhP/kWh) 8.532  
  Annual CER Volume (tCO2e/year) and $/tCO2e                      –   $5.00
  Pellet production rate (mt/hr) and selling price (PhP/mt) 10.00           4,000.00
  O&M Cost ($000/unit/year) – power, pellet $1,150.00 $2,642.01
  Spare Parts, Tools & Equipment ($000/MW/yr) – power, pellet $10.00 $22.97
  O&M + Spares as % of EPC, T/L, S/S 5.29%  
  Refurbishment Cost (% of EPC) 30%  
  Timing of Refurbishment (Year from COD) 10  
  G&A ($000/year) – power, pellet $20.00 $45.95
  Fuel Cost (switch for Biomass: 1=yes, 0=no) 1  
    Average Fuel Cost (PhP/mt)            5,000.00  
    Fuel Rate (kWh/mt)               700.00  
    Average Fuel Consumption (mt/year)               34,882  
    Average Unit Cost of Fuel (PhP/kWh)                 5.228  
     
  Days Receivable & Payable 30 30
  VAT Recovery 70%  
  Timing of VAT recovery (Yrs after COD) 5  
     

 

   
Debt and Equity Assumptions  
Local/Foreign Capital Mix:  
  Local Capital 49.61%
  Foreign Capital 50.39%
   
Debt:  
  Local & Foreign Upfront & Financing Fees 2.00%
  Local & Foreign Commitment Fees 0.50%
  Local All-in Interest Rate excluding tax 10.00%
  Local Debt Payment Period (from end of GP) (Yrs) 10
  Foreign All-in Interest Rate excluding tax 8.00%
  Foreign Debt Payment Period (from end of GP) (Yrs) 10
  Local and Foreign Grace Period from COD (months) 6
  Local and Foreign debt Service Reserve (months) 6
  Debt Ratio 70.00%
  Total Local Debt ($000) – 30% $6,645
  Total Foreign Debt ($000) – 70% $17,071
    Total Debt Amount ($000) $23,716
   
Equity:  
  Equity Ratio 30.00%
  Equity Investment $10,164
  Cost of Equity (Onshore Equity IRR) – Nominal 20.00%
  Cost of Equity (Onshore Equity IRR) – Real 15.38%
   
WACC pre-tax 12.66%
WACC after-tax 11.39%
   
Tax Assumptions  
  Income Tax Holiday (Yrs) 7
  Income Tax Rate % (after ITH) 10.00%
  Property tax (from COD) 1.50%
  Property tax valuation rate (% of NBV) 80.00%
  Local Business Tax 1.00%
  Government Share (from COD) 0.00%
  ER 1-94 Contribution (PhP/kWh) 0.01
  Withholding Tax on Interest (Foreign Currency) – WHT 10.00%
  Gross Receipts Tax on Interest (Local Currency) – GRT 5.00%
  Euro to US$
Economic Assumptions 1.3500
  Base Foreign Exchange Rate (PhP/US$) – 2010 47.8125
  Forward Fixed Exchange Rate (2012) 44.0000
  Base Local CPI – 2009 160.00
  Annual Local CPI 4.00%
  Annual US CPI 2.00%
  Annual Peso Depreciation Rate 1.96%
   
   

 

Gross Heating Value 4,000 Btu/lb
  2.2046 lb/kg
  1000 kg/mt
  8,818,400 Btu/mt
Efficiency, % 27.09% of GHV
Plant Heat Rate 3600 kJ/kWh
  1.05506 kJ/Btu
  3,412 Btu/kWh
  12,598 Btu/kWh
Fuel Rate 700 kWh/mt
Cost of Fuel (no CPI and FOREX adjustment)            5,000.00 PhP/mt
  700 kWh/mt
                  7.143 PhP/kWh
Cost of heat (no CPI and FOREX adjustment)                 6.410 PhP/kWh
     
mt/h pellet 10.00  
h/yr 8,000  
mt/yr pellet 80,000  
Btu/mt pellet 8,818,400  
Btu/yr from pellet 705,472,000,000  
Btu/kWh @ 100% efficiency 3,412  
kWh/yr from pellet 206,754,247  
MWh/yr from pellet 206,754  
     
MW power (net) 2.50  
MW heat (net) 12.00  
MW power + heat (net) 14.50  
cogeneration (CHP) efficiency 72.0%  
MW power + heat (gross) 20.14  
h/yr 8,000  
MWh/yr (power + heat) 161,112  
     
MWh/yr from pellet 206,754  
MWh/yr (power + heat) 161,112  
MWh/yr surplus (pellet to export) 45,642  
Btu/kWh @ 100% efficiency 3,412  
Btu/yr 155,737,071,139  
Btu/mt pellet 8,818,400  
mt/yr surplus (pellet to export) 17,660  
     
MWh/yr surplus (pellet to export) 161,112  
MW power + heat (net) 3,412  
Btu/yr 549,734,928,861  
MW power (net) 8,818,400  
mt/yr pellet fuel (power and heat) 62,340  
     

 

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If you are interested, email me to confirm order at:

energydataexpert@gmail.com

Then I will provide my current account bank details so you could remit payment via bank / wire transfer.

Thanks,

Your energy technology expert

 

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