Joint venture for a PV project in Honduras. January 2015

Transcription

1 Joint venture for a PV project in Honduras January 2015

2 1. The project: The goal is to carry out several PV and wind projects in Honduras. The first PV project is a 48 Mw (up to 55 Mwp installed) facility in the initial stage, with a total project volume up to 130 Mw. The first power plant, Fray Lazaro, will be installed in the Choluteca area, a geographical location with very high solar irradiation. An international EPC company with experience in this activity and in the local market is required to guarantee the timing and quality of the work. The power station and the grid connection point are only 4 km away from the project area and the transport grid will be installed along the national road. A favorable 20 year off take agreement based on the certification of the national energy commission (PPA) was signed on 16th January 2014 with the local utility ENEE, applying a medium sale price of 0.18 USD/Kw of those part connected before august 2015, and 0.15 USD/Kw for all the rest volume of the project. 25% of the investment will be financed via already existing local partners and financial instruments, while the rest will be offered to investment funds or partners. 2

3 2. The partners: SPV company with project rights 25% SYRE, SA 75% Investor Swiss company which coordinates the J/V agreement EPC Company & Components Investment company which shares the equity and financial instruments 3

4 3. Structural activities: ENSSUR has all the administrative authorizations as well as the natural resources and environmental license (SERNA), the national operating contract and municipal solvency. The current SPV owners are also offering all the necessary local support during the construction period up to the grid connection and will stand surety for the necessary guarantee of $ to the PPA agreement. SYRE is a strong local company with a good reputation and experience in important energy projects in the country which has been in the international import and export business working with European and American companies for more than 40 years. The company is interested in a long-term participation in the project. FEC Services is a Swiss consulting company with proven experience in promoting, building and optimizing the performance of PV plants. 4

5 4. Developments steps: The project will be developed on an ideal 150 Ha area and the necessary land has already been rented by the SPV company under a 25 year agreement. The preparation of the land has been realized and the plant could be connected to the grid during the 3 nd quarter of The developer has to meet the PPA conditions and connect part of the plant on time in order to guarantee the higher subsidized sales price for the next 20 years. This southern region has more than kwh/m 2 of annual solar radiation and the expected production will be kwh/kwp (102 Gwh/year). The prepared grid connection facilities are sufficient for the first 50 Mw and the transformer station could be expanded and adapted to accommodate future growth. A preliminary lay-out of the PV-plant with high performance components has been prepared and is actually being optimized under control of FEC Ltd. by the EPC experts and engineers. 5

6 5. Project location: Choluteca Region in Honduras 6

7 6. Radiation map: 7

8 7. Cost and rentability calculation Example: Honduras 55,424 Mwp PLANT PREMISES Installed capacity Specific annual yield Annual degradation of modules ,00 kwp kwh/kwp 0,30% p.a. OPERATION PREMISES Total annual costs (initial value) $ Cost adjustments to inflation (O&M) 1,00% FINANCE PREMISES Feed in Tariff 0,149 $/kwp Total of investment $ Turn key price $/kwh Equity (in %) 30% Equity $ Loan $ Interest rate of loan 7,00 % Term of loan 15 years OUTPUT RATIOS Total gross return 14,58% Total net return (incl. operating costs) 13,26% Net profitability interests / Equility 37,67% Earning before tax (EBT) / Equility 26,25% Net present value (NPV) $ Internal rate of return (IRR) 16,80% EBITDA / Equily 49,45% EBITDA / Total Investment 14,84% 8

9 7. Cost and rentability calculation Details Feed in Tariff and Land rights (lease) COMPENSATION Until 2025 Incentive tariff PPA Market price compensation 0,149 TOTAL COMPENSATION 0,14879 DUTIES TO COMMUNE Donation to the commune Calculated to 20 years (contract duration) Paid PPA Lease 1 year (*sing in fee) $ Lease (as of 2 years) $ kwh/year - expected production Expected yearly net income market $ price Administration costs 1,00 % Administration costs VAT support Incl. SHORT CALCULATION OVERVIEW INCOME kwh/year - expected production Compensation 0,149 Yearly expected production COSTS Insurance 3% Administration costs 1% O&M 4% Rent $/year Annual costs $ NET INCOME (MINUS COSTS) Yield 13,26% Total investments (1.850 $/kwp)

10 7. Cost and rentability calculation CALCULATION OF PROFITABILITY Installed capacity (kwp) Kwp. FINANCING Insurance (3%) Turn key price ($/kwp) price offer Adminis. costs (1%) Purchase of land 0,000 O&M (4%) Total of investment $ Lease 1º year Feed in tariff (FIT) 0,149 $/year Lease following years Tariff adjustment inflation 1% Annual depreciation 20 - lineal Costs adjustments inflation 1% Interest rate of loan 7% Specific annual yield (Ind. expert.) Differential 0% Expected piant yield kwh Abstinence time 2 years Expected gross revenues $ Loan in % investment 70% Life cycle of panel 20 years Total of loan $ Power loss of modules 0,30 PV SYST Equity $ Plant yield warranted 95% Funding provision 1% Gross revenue $/year 10

11 8. Images: Substation Agua Caliente Existing substation View of the land and national road 11

12 9. Our concept: 12

13 10. Contact: Marc Royen CEO Tel Erlenpark, Ruppenstrasse, nº 20 CH-9212 Arnegg / Gossau marcroyen@fecservices.ch Part of: Future Energy Consulting Ltd. 13