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MTO Solar PV Model.xls

June 24th, 2012 Posted in renewable energy

MTO Solar PV Model.xls

Solar energy is most available in countries near the equator. It can be harnessed using photo voltaic panels that when connected together in arrays can provide utility scale capacities of 5 MW modules and with 2 modules, could produce 10 MW of power in a given site.

This MTO first-year tariff model for Solar PV makes use of the basic assumptions of the country’s RE regulator for rated capacity (1.25 MW), capacity factor (15%), plant own use (5%), and transmission line loss (3%).

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 24 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=139

The summary worksheet is shown below:

 

Executive Summary
SOLAR   PHOTOVOLTAIC ENERGY INSTALLATION
Investors’   Returns:          NPV-FC 0
  Equity IRR (% p.a.) 16.00%
  Payback Period (years) 6.29
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) 53.19 $43
Freight on Board = FOB USA = $/kW 1,433.76 $1,147
Ocean Freight = FRT = 5% x FOB 71.69
Insurance = INS = 1% x FOB 14.34
Cargo, Insurance & Freight = CIF = FOB + FRT + INS 1,519.79
Value Added Tax = VAT = 12% x CIF 182.37
Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) 0.00
Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty 1,702.16
Local Freight Cost = LFC = 3% x CIF 45.59
Delivered Cost at Site = DCS = DPLC + LFC 1,747.76
Installation Cost = IC = 5% x FOB 71.69
Transmission line cost 69 kV (2,000,000 PhP/km) = T/L 425.53
Total EPC = DCS + IC + T/L 2,244.98
Contingency (10%) = EPC x 10% 224.50
Documentary Stamps (1%) = EPC x 1% = DS 22.45
Total Fixed Assets (EPC + Contingency + DS) 2,491.93 $1,994
Capitalized Expenses:
Development costs (developer, modeler) 12.73
Other Costs including taxes, contingencies 0.00
Carbon Emission Registration & Consultancy 25.00
Initial investment in capitalized expenses 37.73 $30
Working Capital:
        months
  Working capital (adjustment to   meet DSCR = 1.1) 0.00
  Expenses from fuel consumption 0.00 2
  Maintenance of solar PV panels   (spares) 0.01 2
  Utilities (fuel, lubes,   electricity, water) 0.02 3
  Maintenance of the rest of the   plant 0.97 3
  Personnel expense 0.97 3
  Land lease, rent 0.00 1
  Taxes, Insurance, services, and   others 0.13 1
  Transport 6.49 1
  Total Working Capital 8.60 $7
Interest During Construction:
Dev’t fees (developer, loan arranger) 12.96
Front end fees (modeler, loan arranger) 12.96
Commitment fees (bank) 12.96
Interest During Construction (bank) – 12 months 207.32
  Total Legal &   Financing Fees and IDC 246.19 $197
Total Uses of Fund, ‘000 US$ 2,837.63 $2,270
Sources   of Fund:
  % to be financed by capital 851.29 30.00%
  % to be financed by non   refundable subsidy 0.00 0.00%
  % to be financed by debt 1,986.34 70.00%
Total Sources of Fund, ‘000 US$ 2,837.63 100.00%
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) 0.125
  No. of Units 10
  Total Gross Installed   Capacity (MW) 1.250

 

National   Renewable Energy Board
Licensed to: (Name of   Client)
Generation and Sales:
  Capacity Factor (% of rated) 15.00%
  Days per year 365
  Hours per day 24  MW
  Gross Generation (MWh/year) 1,643 1.250
  Power Plant Own Use (%) 5.000% 5.000%
82 0.063
  Net Generation (MWh/year) 1,560 1.188
  Transmission Line Loss assumed (%) 3.000%
47
  Net Sales (MWh/year) 1,514
Transmission Line:
  Line Voltage 69  kV
  Power 1,250  kW
  Length 10.000  km
  Power Factor 0.850  lag
  No. of Circuit 3
  Transmission Line Loss calculated (%) 0.028%
  Cost per km: 2,000,000  PhP
42,553  $
Capital and O&M Cost   Assumptions:
First Year Tariff (PhP/kWh) 17.9500 0.38191   US$/kWh
Cost per kW FOB USA ($/kW) 1,147
Variable O&M ($/kWh): 0.000133
  Maintenance of solar PV panels (spares) 0.06   000 US$
  Utilities (fuel, lubes, electricity, water) 0.09   000 US$
Fixed O&M ($/kW/year) 0.097
  Maintenance of the rest of the plant 3.89   000 US$
  Personnel expense 3.89   000 US$
  Land lease, rent 0.00   000 US$
  Taxes, Insurance, services, and others 1.56   000 US$
  Transport 77.84   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$ 47.00 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 12.00

 

 

One Response to “MTO Solar PV Model.xls”

  1. Camila Says:

    All power sources have drabawcks. The two you mention, like nuclear, are relatively clean, which is a plus.Hydro is very cheap for the amount of energy we get, but our rivers are basically all dammed up already there isn’t a lot more hydropower we can get.Solar is one of the most expensive ways to generate electricity on a utility scale, but could be the cheapest way to generate electricity on a homeowner scale, at least for many urban homes. Unless one has a stream running through their property to run a water wheel, or strong steady wind, the other choices for getting power are using a gas- or oil-powered generator, or buying retail electricity from the grid. The generator will cost more per kWh over the life of the system, and the grid electricity could be more or less expensive, depending on where one lives. At the moment, the grid is usually cheaper, but not in all parts of the country.



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