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MTO Wind Model.xls

June 24th, 2012 Posted in renewable energy

MTO Wind Model.xls

Wind energy is most available in countries within the 40 deg North latitude and 40 deg South latitude. It can be harnessed using giant wind turbines that when connected together in a wind farm can provide utility scale capacities of 2.0 MW per turbine and with 15 turbines, could produce 30 MW of power in a given wind farm.

This MTO first-year tariff for wind makes use of the basic assumptions of the country’s RE regulator for rated capacity (30 MW), capacity factor (25.8%), 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=140

The summary worksheet is shown below:

 

Executive Summary
WIND POWER PLANT
Investors’   Returns:          NPV-FC (0)
  Equity IRR (% p.a.) 16.00%
  Payback Period (years) 6.03
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) 4.26 $0
Freight on Board = FOB USA = $/kW 38,436.74 $1,281
Ocean Freight = FRT = 5% x FOB 1,921.84
Insurance = INS = 1% x FOB 384.37
Cargo, Insurance & Freight = CIF = FOB + FRT + INS 40,742.95
Value Added Tax = VAT = 12% x CIF 4,889.15
Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT) 0.00
Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty 45,632.10
Local Freight Cost = LFC = 3% x CIF 1,222.29
Delivered Cost at Site = DCS = DPLC + LFC 46,854.39
Installation Cost = IC = 5% x FOB 1,921.84
Transmission line cost 69 kV (2,000,000 PhP/km) = T/L 851.06
Total EPC = DCS + IC + T/L 49,627.29
Contingency (10%) = EPC x 10% 4,962.73
Documentary Stamps (1%) = EPC x 1% = DS 496.27
Total Fixed Assets (EPC + Contingency + DS) 55,086.29 $1,836
Capitalized Expenses:
Development costs (developer, modeler) 1,101.81
Other Costs including taxes, contingencies 0.00
Carbon Emission Registration & Consultancy 30.00
Initial investment in capitalized expenses 1,131.81 $38
Working Capital:
        months
  Working capital (adjustment to   meet DSCR = 1.1) 0.00
  Expenses from fuel consumption 0.00 2
  Maintenance of wind   turbine/generator (spares) 0.97 2
  Utilities (fuel, lubes,   electricity, water) 2.18 3
  Maintenance of the rest of the   plant 209.38 3
  Personnel expense 209.38 3
  Land lease, rent 1.33 1
  Taxes, Insurance, services, and   others 27.92 1
  Transport 13.96 1
  Total Working Capital 465.11 $16
Interest During Construction:
Dev’t fees (developer, loan arranger) 566.87
Front end fees (modeler, loan arranger) 566.87
Commitment fees (bank) 283.44
Interest During Construction (bank) – 12 months 4,535.00
  Total Legal &   Financing Fees and IDC 5,952.18 $198
Total Uses of Fund, ‘000 US$ 62,639.66 $2,088
Sources   of Fund:
  % to be financed by capital 18,791.90 30.00%
  % to be financed by non   refundable subsidy 0.00 0.00%
  % to be financed by debt 43,847.76 70.00%
Total Sources of Fund, ‘000 US$ 62,639.66 100.00%
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) 2.000
  No. of Units 15
  Total Gross Installed   Capacity (MW) 30.000

 

National   Renewable Energy Board
Licensed to: (Name of   Client)
Generation and Sales:
  Capacity Factor (% of rated) 25.00%
  Days per year 365
  Hours per day 24  MW
  Gross Generation (MWh/year) 65,700 30.000
  Power Plant Own Use (%) 5.000% 5.000%
3,285 1.500
  Net Generation (MWh/year) 62,415 28.500
  Transmission Line Loss assumed (%) 3.000%
1,872
  Net Sales (MWh/year) 60,543
Transmission Line:
  Line Voltage 69  kV
  Power 30,000  kW
  Length 20.000  km
  Power Factor 0.850  lag
  No. of Circuit 3
  Transmission Line Loss calculated (%) 1.365%
  Cost per km: 2,000,000  PhP
42,553  $
Capital and O&M Cost   Assumptions:
First Year Tariff (PhP/kWh) 10.3700 0.22064   US$/kWh
Cost per kW FOB USA ($/kW) 1,281
Variable O&M ($/kWh): 0.000267
  Maintenance of wind turbine/generator   (spares) 5.80   000 US$
  Utilities (fuel, lubes, electricity, water) 8.70   000 US$
Fixed O&M ($/kW/year) 0.0853
  Maintenance of the rest of the plant 837.53   000 US$
  Personnel expense 837.53   000 US$
  Land lease, rent 15.96   000 US$
  Taxes, Insurance, services, and others 335.01   000 US$
  Transport 167.51   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

 

 

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