March  2014  

Vava’u  Hybrid  Solar  Project  

•  Today  Asia  Pacific  accounts  for  17%  market  growing  to  22%  by  2020  •  Global  leader  ~2025  

Vava’u  PV  Project  

Fraser  Coast  Community  Solar  Farm  

•  500kW  of  PV  •  100kW  of  baFery  for  20  minutes  •  Ground  mounted  •  Fully  integrated  with  diesel  power  staIon  

  IntegraIon  control  systems    ProtecIon  systems  

•  Funded  by  Abu  Dhabi  Future  Energy  Company  (Masdar)  

•  Owned  by  Tonga  Energy  Road  Map  ImplementaIon  Unit  (TERM  IU)  

•  Operated  by  Tonga  Power  Limited  

Funding  and  Ownership  

•  Up  to  70%  of  noon  Ime  load  of  the  enIre  grid  supplied  by  PV  

•  Approximately  13%  of  the  grid  energy  is  now  solar  power  

High  PenetraBon  of  PV  

Snapshot:  About  Ingenero  

•  Power    company  specialising  in  Solar  Electricity  GeneraIon  

  UIlity  Scale,  Commercial  and  Industrial  RooWop  &  ResidenIal  

  Experienced  in  both  Electricity  Sales  (PPA’s)  and  turnkey  projects    Technically  strong  

•  Across  technologies  •  Around  broader  systems  aspects  of  monitoring,  electrical  engineering    

and  network  connec9vity  

•  Solar  design  •  Financial  engineering    

•  Project  management  

•  Strong  &  experienced  management  team    UIlity  experience  in  power,  data  and  telecommunicaIons  

•  The  leading  Solar  EPC  company  in  Australia  due  to  breadth  of  installaIons    and  technology  

•  Scalable  for  growth  regardless  of  territory  

Ingenero – A brand you can trust

Government  &  UBliBes   ConstrucBon  

Commercial  RooMops  

EducaBon  Airports  Retail  

Kingscote Airport

•  More  stakeholders…..greater  potenIal  for  misalignment    6  stakeholders   Myriad  of  ideas….all  slightly  wrong    Alignment    comes  with  understanding  the  real  Genset  operaIng  

environment  

•  Clarity  of  specificaIon  and  KPI’s  a  must    Especially  around  storage  performance    

  Economic  benefit  

•  Ge`ng  the  spinning  reserve  vs  PV  output  a  key    Counter  intuiIve    Sacrifice  PV  output  to  achieve  safety  and  efficiency  of  the  Gensets  

  3.9kwh  per  litre  to  3.75  kwh  per  litre    Economic  benefit  was  more  fuel  per  unit  for  energy  produced  BUT  

providing  less  overall  power  

Macro  Level  ObservaBons  

Three  major  components  that  need  to  interact  properly  if  all  the  economic  benefits  are  to  be  achieved;  

•  PV  and  the  related  intermiFency  

•  Diesel  and  it’s  ability  to  compensate  for  PV  in  Ime  

•  Storage  and  it’s  ability  to  bridge  the  gap  

•  Solar  generaIon  components  

•  Storage  design  •  Control  systems  

•  ProtecIon  systems  

•  Standards  

OperaBonal  Philosophy  

•  Irregular  shipping  schedules    Three  or  four  ports  to  enter  

•  Long  transit  Imes    60/80  days    Greatest  exposure    Project  management  key  

•  LiFle  local  availability  of  parts    Coupled  with  long  transit  Imes  a  potenIal  project  killer  

  Staging  and  warehouse  management  plan  

•  Local  idiosyncrasies      Port    Customs  

  Local  transport  

LogisBcal  Challenges  

•  Site  management    a  key  project  hire  

•  Totally  new  set  of  tasks  and  process  skills  needed  vs.  local  capabiliIes    Conscious  of  communicaIons  

  Seek  cultural  alignment  as  much  as  possible  

•  Local  training    Ongoing  commitment  for  the  life  of  the  project    

•  Use  of  local  materials  vs.  imporIng    The  baFery  house  example  

  Speed  of  local  approvals    Availability  of  local  building  skills    

•  Use  of  equipment  vs.  manpower  trade  off    The  mounIng  frame  example  

  Uncertainty  around  quality  of  local  labour  

ConstrucBon  Challenges  

•  Because  of  the  nature  of  the  funding  sources  there  is  the  potenIal  for  disconnect  with  the  local  uIlity    #  of  parIes  involved    Funding    Local  government  policy  units  

  Local  uIlity    Project  developer  or  solar  EPC  contractor    Local  interest  groups  

•  Typical  areas  of  UIlity  uncertainty  that  needs  to  be  addressed    Core  renewable  technology    Impact  on  diesel  operaIng  efficiency  

  Impact  on  network  stability  

  Local  standards  implicaIons  

•  When  the  project  is  complete  the  UIlity  must  own  the  design  and  operaIng  philosophy  on  an  ongoing  basis  

Bringing  the  local  uBlity  along  on  the  journey  

•  NaIonal  cultures  

•  Workplace  pracIces    Safety    Risk    Breaks    Clothing    LeWover  materials  

•  Language  and  respect    Hierarchical  with  Itles    ConsultaIve  approach    Verbal  respect  

•  CelebraIng  success    How  /  what  is  the  local  definiIon    The  pig  roast  example  

Work  hard  at  cultural  alignment  

•  Success  or  otherwise  will  come  down  to  the  operaIon  and  site  management  philosophy  of  the  EPC  contractor  

•  Ingenero  approach  was  to  leave  a  legacy  of  transferred  skills    Limited  but  prudent  use  of  Ingenero  staff  

•  Site  manager  •  Project  manager  •  Solar  design/architect  

  Very  careful  selecIon  of  local  contractors  •  Up-­‐skilling  the  workforce  

  Making  safety  a  top  priority    SupporIng  the  supply  process  for  local  materials    ConInual  reinforcement  thru  site  training    Vavaú  now  has  a  set  of  installaIon  skills  transferrable  to  the  next  project  

•  Up-­‐skilling  the  subcontractors  business    Very  supporIve    Much  more  skilled  workforce    Look  to  transfer  process  into  the  business  wherever  possible    Leverage  skill  sets  outside  of  just  solar    

•  QA  •  Business    process  

How  to  build  local  skillsets  that  last  

March  2014  

Vava’u  Hybrid  Solar  Project