Legislative support of RES in the Russian Federation. Russian Association of Wind Power Industry, RAWI

Transcription

1 Legislative support of RES in the Russian Federation Russian Association of Wind Power Industry, RAWI

2 RES support legislation principles The plan of capacity commissioning ( quotas for tender for LTCA long-term capacity agreement) To get LTCA the tender is held every year Each tender is held "for years ahead Power is not contested in the tender, go to the next contest Period MW Legislation principles: Defined plan for capacity by 0 and degree of localization of equipment Defined the procedure of stimulation of development of renewable energy projects through a Long Term Capacity Agreement, LTCA Defined the procedure of return of investments and the profitability of wind farm investment projects Approved localization plan RES type / year Wind farm 5% 0% 55% 65% Total 600

3 The order of development of renewable energy projects Participation in tender for LTCA long-term capacity agreement, the conclusion of commercial representation agreement with JSC Center of financial calculations, signing of LTCA The construction of wind farm in accordance with requirements of localization Wind farm commissioning and qualification Return on investment with a yield of % on invested capital As support for the development of renewable energy projects tender for conclusion of long term capacity agreement. Participants of the tender should perform its obligations under the Wind farm commissioning with the specified characteristics and within the set period. LTCA is concluded for 5 years and only for the projects defined by the tender. The tender criterion is the price of CAPEX. Limit values of CAPEX established by the legislation of Russian Federation: CAPEX, RUR / kw PLUS corrections corresponding currency basket, for instance Max CAPEX in 05 was 000 plus VAT, in plus VAT The participants declared a minimum price CAPEX within the planned capacity commissioning volumes, become the winners and receive the right to get LTCA.

4 The order of the admission to participation in tender for Long Term Capacity Agreement The membership in nonprofit partnership "market Council" The conclusion of the contract on joining to trading system The status of the wholesale market of energy and power Participation in tender for Long Term Capacity Agreement The conditional group of supply points registration 5 Guarantee 5% CAPEX From energy company or a bank

5 Requirements of localization and existed manufacturers % COOLING SYSTEM 5 plants to produce 5 % / 5% GENERATOR plants to produce NACELLE % 5 plants to produce SYSTEM CONTROL BLADE ANGLE DRIVE plants to produce % 8% BLADES plants to produce 6% % HUB plants to produce During the construction of wind farms required equipment localization. From 06-5%; 07-0%; 08-55%; 09 and further 65 % of all works, services and equipment components must be made on the territory of the Russian Federation. In the case of nonfulfillment of requirements to the price of the PSA will be applied to the decreasing coefficient of 0.5. Manufacturers for each component existed in Russian Industry % SHAFT 8% plants to produce INVERTOR plants to produce % TOWER 7 plants to produce SYSTEM CONTROL PHASE ANGLE NACELLE plants to produce 5

6 Wind farm qualification Criteria for the recognition of the generating facilities qualified:* Generating facility operates solely on the basis of renewable energy sources Generating facility commissioned Generating facility connected to the electric grids and equipped with measuring instruments Generating facility is included in the plan and program of perspective development of electric power of the subject of Russian Federation, on the territory of which is located After construction and commissioning of each object must pass the qualification procedure in nonprofit partnership "market Council" *Criteria for the recognition of the generating facilities installed by a qualified Rules qualification generating facilities operating on the basis of use of renewable sources of energy (decree of the Government of the Russian Federation of June, 008 6) 6

7 Long Term Capacity Agreement price calculations (simplified) Input Calculation Output CAPEX announced for competition CAPEX return Requirement revenue - (subtract) Total capacity Return on invested CAPEX Power factor Operating costs return Revenue from electricity sales Forecast price indexes Property tax return = After payback period profit ratio Power supply agreement price Profit tax index, Currency Basket ratio 5 Requirement revenue 7

8 Power supply agreement price calculations (5 years period) example (simplified) Input Calculation Output RUR per MW CAPEX announced for competition RUR CAPEX return RUR Requirement revenue 00 MW Total capacity RUR Return on invested CAPEX - (subtract) 5% Power factor RUR Operating costs return RUR Revenue from electricity sales. Consumer price index forecast. Electricity price forecast. The yield of state obligations forecast RUR Property tax return 0,9 After payback period profit ratio = RUR Power supply agreement price,5 Profit tax index RUR Requirement revenue The average annual Power supply agreement price RUR 8

9 Investment performance of RES projects (simplified) Invest period payback period of capital Total cash flow 0, bln.** Cash Flow 0,0 bln.* 7,0 bln. 6, bln. 6, bln.,0 bln. Year Payback period 7 years IRR % * RUR or EUR per MW ** Operating cash flow 9

10 Example of calculation of a wind park The assumptions in the calculation Capacity 00 МВт Capacity factor 0% CAPEX RUB./ MW Start of power supply Date of participation at Market Council tender after 05 year Rate of return on investment capital % CAPEX announced at the tender in Market Council RUB./ MW The share of borrowed funds 00% Terms of repayment of borrowed funds - the rate of 0%, for 0 years, the payments - annuity Cash flow for distribution -5 years 0,70 bln.rub. 6-0 years (,5) bln.rub. -5 years 6, bln.rub. 5-0 years 0,9 bln.rub. Total6,50 bln.rub Years Cash flow,88,88,86,8,8,57,5,,9,6 Repayment 0,6 0,7 0,8 0,90,00,0,,,8,6 Repay-t of int-est on the loan 0,98,0 0,9 0,8 0,75 0,6 0,5 0,0 0,6 0,0 Cash balance 0,8 0, 0, 0,0 0,07-0,7-0,9-0, -0,5-0,8 Years Cash flow,,,,0,9 0,7 0,7 0,8 0,9 0,9 Repayment 0, Repay-t of int-est on the loan 0, Cash balance,8,,,0,9 0,7 0,7 0,8 0,9 0,9 0

11 THANK YOU FOR YOUR ATTENTION! Russian Association of Wind power Industry, RAWI 60, Polustrovsky ave.,st.petersburg 9597, Russia Tel +7 (99) Mob bryzgunov@rawi.ru