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MTO Ocean Thermal Model_50 MW.xls

June 24th, 2012 Posted in renewable energy

MTO Ocean Thermal Model_50 MW.xls

Ocean Thermal Energy Conversion or OTEC is most adapted in deep waters near the equator where the temperature difference between the surface (30 deg Celsius) and a depth of 1 km (10 deg Celsius) located within 10 km from the shoreline.

This 20 deg Celsius thermal gradient is available throughout the year near the equator and diminishes up to 40 deg North latitude and South latitude, beyond which the OTEC is not technically viable for having a much lower thermal gradient. This provides a very high capacity factor of 91% and it only unavailable when it de-couples during a tropical storm and the OTEC power barge transfers to a safer cove to ride the storm.

This MTO first-year tariff model for OTEC makes use of the basic assumptions of the country’s RE regulator for rated capacity (80 MW), capacity factor (91%), plant own use (36%), and transmission line loss (1.82%).

It assumes an overnight capital cost, fixed and variable O&M, spare parts replacement cost, substation and transmission line cost and distance, access road cost and distance, project development cost, 12% VAT, working capital and contingency. VAT recovery is 70% on the 5th year.

Construction period is 48 months while operating period is 20 years. Cost of capital is 16% p.a. for 30% equity and 10% p.a. for 70% debt.

Exchange rate is 44.00 PhP/US$.

Incentives provided by the RE Law is applied such as the 7 years income tax holiday, after which a 10% income tax is applied. Property tax of 1.5% applied on 80% of book value. Local business tax is 1% while DOE 1-94 contribution is 0.01 PhP/kWh.

To order, pay and download this model, follow this link:

http://energydataexpert.com/product_info.php?cPath=19_32&products_id=138

The summary worksheet is shown below:

 

Executive Summary
OCEAN   THERMAL ENERGY CONVERSION
Investors’   Returns:          NPV-FC 0
  Equity IRR (% p.a.) 16.00%
  Payback Period (years) 5.57
Uses   and Sources of Funds During Construction:        000 US$          $ / kW
Uses   of Funds:
Initial investment in land (10 PhP/sqm) x (10,000 sqm/ha) 4.44 $0
Freight on Board = FOB USA = $/kW 391,136.61 $4,889
Ocean Freight = FRT = 5% x FOB 19,556.83
Insurance = INS = 1% x FOB 3,911.37
Cargo, Insurance & Freight = CIF = FOB + FRT + INS 414,604.80
Value Added Tax = VAT = 12% x CIF 49,752.58
Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) 0.00
Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty 464,357.38
Local Freight Cost = LFC = 3% x CIF 12,438.14
Delivered Cost at Site = DCS = DPLC + LFC 476,795.52
Installation Cost = IC = 5% x FOB 19,556.83
Transmission line cost 69 kV (2,000,000 PhP/km) = T/L 444.44
Total EPC = DCS + IC + T/L 496,796.80
Contingency (10%) = EPC x 10% 49,679.68
Documentary Stamps (1%) = EPC x 1% = DS 4,967.97
Total Fixed Assets (EPC + Contingency + DS) 551,444.44 $6,893
Capitalized Expenses:
Development costs (developer, modeler) 0.00
Other Costs including taxes, contingencies 0.00
Carbon Emission Registration & Consultancy 0.00
Initial investment in capitalized expenses 0.00 $0
Working Capital:
       months
  Working capital (adjustment to   meet DSCR = 1.1) 0.00
  Expenses from fuel consumption 0.00 2
  Maintenance of turbine/generator   (spares) 11.51 2
  Utilities (fuel, lubes,   electricity, water) 25.89 3
  Maintenance of the rest of the   plant 654.55 3
  Personnel expense 654.55 3
  Land lease, rent 1.39 1
  Taxes, Insurance, services, and   others 87.27 1
  Transport 43.64 1
  Total Working Capital 1,478.80 $18
Interest During Construction:
  Dev’t fees (developer, loan   arranger) 0.00
  Front end fees (modeler, loan   arranger) 6,579.08
  Commitment fees (bank) 0.00
  Interest During Construction   (bank) – 48 months 46,445.93
  Total Legal &   Financing Fees and IDC 53,025.00 $663
Total Uses of Fund, ‘000 US$ 605,952.69 $7,574
Sources   of Fund:
  % to be financed by capital 181,785.81 30.00%
  % to be financed by non   refundable subsidy 0.00 0.00%
  % to be financed by debt 424,166.89 70.00%
Total Sources of Fund, ‘000 US$ 605,952.69 100.00%
Weighted Average Cost of Capital (WACC):         Returns
  Equity 16.00% 30.00%
  Subsidy 0.00% 0.00%
  Debt 10.00% 70.00%
  WACC 11.80%
Rated Capacity:
  Unit Capacity (MW/unit) 16.000
  No. of Units 5
  Total Gross Installed   Capacity (MW) 80.000

 

 

National   Renewable Energy Board
Licensed to: (Name of   Client)
Generation and Sales:
  Capacity Factor (% of rated) 92.30%
  Days per year 365
  Hours per day 24  MW
  Gross Generation (MWh/year) 646,838 80.000
  Power Plant Own Use (%) 35.938% 35.938%
232,458 28.750
  Net Generation (MWh/year) 414,381 51.250
  Transmission Line Loss assumed (%) 1.820%
7,542
  Net Sales (MWh/year) 406,839
Transmission Line:
  Line Voltage 69  kV
  Power 80,000  kW
  Length 10.000  km
  Power Factor 0.850  lag
  No. of Circuit 3
  Transmission Line Loss calculated (%) 1.820%
  Cost per km: 2,000,000  PhP
44,444  $
Capital and O&M Cost   Assumptions:
First Year Tariff (PhP/kWh) 11.4758 0.25502   US$/kWh
Cost per kW FOB USA ($/kW) 4,889
Variable O&M ($/kWh): 0.000267
  Maintenance of turbine/generator (spares) 69.05   000 US$
  Utilities (fuel, lubes, electricity, water) 103.57   000 US$
Fixed O&M ($/kW/year) 0.0853
  Maintenance of the rest of the plant 2,618.21   000 US$
  Personnel expense 2,618.21   000 US$
  Land lease, rent 16.67   000 US$
  Taxes, Insurance, services, and others 1,047.28   000 US$
  Transport 523.64   000 US$
Debt Service Reserve Fund:
  Months of debt service 6
  DSRF Income -interest on Foreign Currency   Deposit 4.0%
  Withholding Tax on Foreign Currency Deposit 7.5%
  DSRF Expense 0.30%
Taxes and Regulatory Costs:
  VAT recovery at 5th year 70%
  Special Privilege Tax – 2% 1.00%
  Special Realty Tax – 2.5% 1.50%
  DOE 1-94 : 0.01 PhP/kWh sales 0.01
  Corporate income tax rate (% of taxable   income) 10%
  Income tax holiday (ITH), years 7
  Profit Sharing, % of IAT 0.00%
  Social Benefit Fund – Host Community,   PhP/month 0
Working Capital Needs:    months
  Cash needed for operations (+) 3.00
  Customers / Receivables (+) 1.00
  Stocks / Inventory (+) 2.00
  Suppliers / Payables (-) 1.00
Exchange Rate and   Escalation: 0  No Escalation
  Exchage Rate, PhP / US$ 45.00 0.00%  depreciation
  RP CPI (Local) 5.00%  local escalation
  US CPI (Foreign) 2.50%  foreign escalation
  Variable O&M:     weight 0.00%  variable escalation
    % Local (30%) 50.00% 5.00%
    % Foreign (70%) 50.00% 2.50%
  Fixed O&M:     weight 0.00%  fixed escalation
    % Local (70%) 50.00% 5.00%
    % Foreign (30%) 50.00% 2.50%
Loan:
  Interest rate of debt, % p.a. 10.00%
  Loan term, years 12
  Grace period (construction period), months 48.00

 

 

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