Large PV power plants stakes in South Africa · 2019. 9. 2. · Balanced geographies – FY 2010 sales Year-end 2010 employees Diversified end markets – FY 2010 sales 1 North America

Large PV power plants stakes in South Africa

Schneider Electric

Philippe Dif – Arnaud ALLIX

The 19th, September 2011

Schneider Electric 2- Division - Name – Date

Agenda

● Schneider Electric Introduction

● Large PV power plants stakes in S.A.

●Obtain Low LCOE●Financing & Risk mitigation●Local content

● Conclusion


Agenda




● Conclusion


Schneider Electric – the global specialist in Energy Management

billion € sales in 2010

% of sales in new economies

people in 100+ countries

of sales devoted to R&D Residential 9%

Utilities & Infrastructure 20%

Industrial & machines 24%

Data centres 17%

Non-residential buildings 30%

Balanced geographies – FY 2010 salesYear-end 2010 employees

Diversified end markets – FY 2010 sales1

North America

24% Asia Pacific

24%Rest of World18%

WesternEurope

34%

1 Proforma with Areva D integrated on 12-month basis

26,000

41,700

31,900

19,200

Listed on the Paris Stock Market – CAC40


… with Local Presence in Southern Africa

+ 1,200 people

in more than16 Offices

and 5 Projects and Service Execution Centres

1 Global Manufacturing Facility – Conlog (Durban)

Head Office – MidrandWarehouse: Bartlett (Isando)Regional Offices: R-Bay, DBN, PE, CPT, BLM, Nelsp, George


Strongly involved in PV Market with different business Models on different market segments

FarmsOff-grid Residential Buildings

250 kW to 1 MW > 1 MWp > 1 MWp36 to 250 kWc0 to 36 kW

Private Customers

Local communitiesSmall buildingsAgricultureIndustries

IndustriesRetailLogistic centres

InvestorsUtilities

TelecomsRural electrification

(With batteries)

LocalcommunitiesSmall buildingsAgriculture

Products retailing Electrical Turnkey Solution

1 2 3 EPC businessModel


Field with irradiation level& PV Modules

Grid & Energy usage

A unique positioning in PV Market…

Global specialist in Energy Management

Making energy:•Safe•Efficient•Productive•Reliable•Green

A Global Solution &associated Local Services



Grid & Energy usage

A unique positioning in PV Market…

Global specialist in Energy Management

Making energy:•Safe•Efficient•Productive•Reliable•Green

A Global Solution &associated Local Services


Make the most of your Energy


Agenda




● Conclusion


LCOE content and parameters for PV

OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability

IrradiationPerformance

CAPEX

debtInterests

rate

EquityROI

(Levelized Cost Of Electricity)



OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability


CAPEX

debtInterests

rate

EquityROI

CAPEX

Irradiation

● Main impacts come from Irradiation level and Capex



OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability


CAPEX

debtInterests

rate

EquityROI

CAPEX

Irradiation

● Main impacts come from Irradiation level and Capex● Capex impact is reinforced by debt and equity remunerations

debtInterests

rate

EquityROI



OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability


CAPEX

debtInterests

rate

EquityROI

CAPEX

● The way the Capex and Opex is done will impact the Debt Interest Rate

debtInterests

rate

EquityROI



OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability


CAPEX

debtInterests

rate

EquityROI

Availability

Performance

● More Capex can improve the PR● More Capex can Decrease Opex (by using more reliable components)● More Opex can improve Availability and Reliability



OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability


CAPEX

debtInterests

rate

EquityROI

● LCOE is not affected by fuel price fluctuation during the lifetime of the power plant (Gas, Petrol, Coal, Uranium,…)

OPEX


How is a power plant built ?


Civil work :

the land is leveled if needed,

screws or piles are positioned to support structures




Structures :

In aluminum or steel

Easily assembled in a factory or on the spot






Modules :

Crystalline or thin film

Fastened on structures by clamps





Array boxes :

to connect strings and stands together

Cables are put in trenches




Kiosks for Power conversion

Includes Inverters, transformersMV protectionCooling equipment

Standard Power : 1MW




Large power plants are made of 1MW parts put in place together


Grid connection sub-station

Includes transformersCircuit breakersenergy meters



Large power plants are just " Copy-and-Paste “ of smaller ones

Olmedilla, Spain 60 MWp

● The basic pattern is often 1MW, on about 20 000m², ● built with robust and standardized equipment

●Main difference comes from sub-station power and voltage



OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability


CAPEX

debtInterests

rate

EquityROI

(Levelized Cost Of Electricity)


Utility Scaled Capex et Opex optimization

●Centralized Architecture●Based on large inverters with high input voltage allowing the best cost

●Find the right field to minimize Civil and connection Works

●A standardized global design● To limit engineering works

●Equipment Industrialization●Based on reliable products● Totally standardized

●Efficient Monitoring ● To leverage O&M team capabilities

●Skilled O&M team● locally


Generation Output optimization

●Choose the right place with the best environmental conditions (Irradiation, temperature, wind, dust, etc…)

●Use reliable component with the right expected life time and a controlled ageing

●Do maintenance with a skilled team knowing the electrical equipment performing the electrical conversion

●Efficient Monitoring ●To leverage O&M team capabilities and increase generation


Power conversion Grid connection

●High volumes and in depth industrialization leads to price optimization ●Schneider Electric is leader a in:

●Electronic power conversion (PV inverters, UPS, transformers● and on LV and MV components & switchgears as well as SCADA Systems

Schneider Electric optimizes Capex through its own Industrialized Offer


Schneider Electric Products and Equipment

45 % - Modules

55 % - Civil work / Structures / Electricals

13 % - Engineering,Commissioning &Execution Management

10 % - Cables & Electrical installation

27 % - Schneider Electricequipment

35 % - Screws, structures& panel mounting

15 % - Civil works

● 22 % of the global cost of a power plant● 40 % of the BOS (without modules)● 80 % of the electrical turnkey solution

● Schneider Electric products & solutions represent a strong share of a PV Power Plant cost structure


SCADA-Monitoring system architectureCompares and checks energy production through 4 levelsMeasurement is organized at these 4 levels

1. Irradiance level

Measures: IrradianceCell temperature

Calculates: Energy of light entering into the module s

2. Array Box level

Measures: String Voltage and CurrentCalculates: Energy produced by the modules

3. Inverter level

Measures: Inverter output power Auxiliary consumption

Calculates: Energy produced by the inverters

4. Power Plant level

Measures: Plant output power Auxiliary consumption

Calculates: Energy produced by the Power plant

Sub-station


Operations & Maintenances Services

●Schneider Electric has local service teams to supply efficient Operations & Maintenance services●Each time a first power plant is built in a country, the local team is

trained to ensure its maintenance, and spare parts storage is put in place

●Operations & maintenance are supported by a very efficient monitoring system and SCADA


Agenda




● Conclusion


PV is the most capital intensive way to produce electricity●Financing has to be optimized to limit the LCOE Level

CAPEX30%

OPEX 10%EQUITY

REMUNERATION25%

TAXES10%

DEBT COST25%

Levelized energy cost for plants entering service in 2011 (2011 DoE Report)

0

50

100

150

200

250

Gas Coal Nuclear Solar

Levelized Capital cost

Fixed 0&M

Variable O&M

LCOE split(South African conditions)


Reduce perceived risks allow to optimize financing

CAPEX - 30%

OPEX - 10%

EQUITY REMUNERATION

- 25%

TAXES - 10%

DEBT COST - 25%

● Interests rates have to be decreased has much as possible●Equity remuneration has to be reasonable

Inflation rate: 5.5%Debt ratio: 70%Interests rate: 10%ROI: 14%Taxes rate: 28%Op. duration: 20 yInitial Prod.: 1600 Kwh/KWp


The Financier point of view

●Financier’s first bird-eye view: ● Long term financing

●Non recourse financing to a SPV to develop & operate a PV plant●Only Pledging of future cash flows

●Amount of financing typically exceeds :

●Investor’s equity in the project (20% - 30%)●The value of the project’s component parts which could be resale

●Project revenues are the only source of financier’s repayment● Identify the factors that may impact project income

●Decide if the level of risk is acceptable●Determine the risk reward trade off (cost of financing)



OPEX

GEBERATIONOUTPUT

Taxes

Ageing

LCOE

Availability


CAPEX

debtInterests

rate

EquityROI

CAPEX

● The way the Capex and Opex is done will impact the Debt Interest Rate

debtInterests

rate

EquityROI


Characteristics of a bankable solar PV project (when regulations, PPA, permits, land rights, grid access, irradiation levels are already assessed)

●Qualified experienced & financially sound project partners

●Project investors

●Equipment manufacturers (Modules and electrical equ ipment)●Performance warranties & relevant track record●Adoption of manufacturing standards would provide a benchmark and allow financiers to make appropriate brand risk assessment (supplier bankability index)●Low risk suppliers will decreased cost of capital

●EPC and O&M contractors●Proven experience & relevant track record●Financial strength to provide adequate project completion performance and availability warranties ●Appropriate certification●Capable to design, procure and built in a very short time


EPC companies participation or help in financing

Objectives:● Leverage their expertise to facilitate project financing for their

customers and reduce global financing costs● Provide concrete solutions , on a case-by-case basis

2 Levers:● Equity

● Constitution of direct financing capability (in co-investment)

● Ability to leverage networks of first-class investors

● Debt● Validation of EPC Offers from major banks

● Animation of a network of bank partners close to group activity able to provide debt structuration services to our customers


Performance warranties are generally needed

●Performance Ratio (PR) measures the efficiency level of the Power plant● It is calculated during the power plant test

●But also, each year during operations

●Availability Level (AL) measures the operations rate● It is calculated only during operations

Power Plant in Operations

Power plant delivery

Operations & Maintenance ContractEPC Contract

Power Plant building Test

Availability LevelPR

Generally EPC companies offers all needed guarantees


Agenda




● Conclusion


Local Content, and jobs creations are important criteria to achieve PV projects ●Even if modules are not built locally, local added value can be significant , about 50%

● It’ s also an efficient way to decrease costs and gain time during construction ● Mandatory during operations and maintenance phase

● Natural, easy to be done, if historical local presence of the EPC

Note :; the reference is a 50-MW PV power plant installation in MENA. MY = Man.Year. FTE: Full Time Equivalent


Agenda




● Conclusion


PV business needs confidence & experience● Stable and reliable regulatory regime● Qualified power purchase agreement (PPA duration > financing duration)● Tested technology● No uncertainties

● Finalized licences & permits● Clear land rights● Grid access (connexion costs and feasibility)● All inclusive insurance (liability/damage/loss of income)

● Independent solar potential evaluation● Qualified, experienced & financially solid project partners

● Equipment manufacturers & EPC● Performance warranties

● EPC & O&M contractors● Proven experience/relevant track record● Financial strength to provide adequate project completion and performance

warranties


References: Over 400MWp in operation in Europe4MWp - Vinon

24MWp - Les Mées

22MWp - Gabardan

9MWp - Ste Clar

17MWp - Reunion15MWp - Roma

43MWp - Puglia

SunPowe rEPC Contract/O&M Services

AES SolarEPC ContractO&M Services

SolarezoElectrical solutionO&M Services

EDF-EN / ExosunElectrical SolutionO&M Services

Solaire DirectElectrical EPC ContractO&M Services

Solaire DirectElectrical EPC ContractO&M Services

Green Yellow (Roof top)

Electrical EPCO&M Services

23MWp - Lanuvio

TernaElectrical Solution


… as well as in Asia Pacific

Gunkul PowergenEPC contractO&M Services

3.3MWp-Petchabun Thailand

Yunan PowerEngineering assistancePackage - O&M Services

4MWp - ShiLin (Yunan) PRC


34 MWp PV Roof Installation on 18 shops

Customer: Green-Yellow (Casino Group) -FranceLocation: South of France, Reunion, MayotteServices & Solutions: Electrical Turnkey projectOperation and Maintenance contract for a 20 years period


43MWP Cellino San Marco Solar Farm -Puglia Italy

Customer: AES Sole ItaliaPower: 43MWp - 100 ha on 3 sitesContract: EPC Number of solar panels: 600 00012 000 structures - 400 array boxes -36 inverter substations - 3x 20kV grid substations Execution: 9 monthsMax number of workers on site: 500Operation and Maintenance contract for a 5 years period

Documents

Large PV power plants stakes in South Africa · 2019. 9. 2. · Balanced geographies – FY 2010 sales Year-end 2010 employees Diversified end markets – FY 2010 sales 1 North America