Project Teaser

Romanian 10 MWp PV Farm

Published October 2014 Copyright © 2012-2014

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Project Description

The Project co-founders (2) are proposing to develop a solar-powered generating facility with a capacity of approximately 10 MWp. In addition to the PV panels, the Project will involve construction of 4 permanent radiation pyrometers, a system of gravel access roads, a buried electrical collection system, an operation and maintenance building, and a collection substation/point of interconnection switchyard.

The Project will be developed on a plot (non-agricultural land) totaling 64 hectares in North-Oltenia region which will be leased for minimum 20 years to the new SPV to be founded, from the Local Council. The Project development and construction is currently anticipated to commence in autumn 2014 and to finish in winter 2016.

Once built, the PV modules and associated components operate in almost completely automated fashion. The Project will, however, employ administrative personnel. No anticipated PV material was chosen for the Project. Each PV module has a computer to control critical functions, monitor solar and meteorological conditions, and report data.

Solar Performance

Monthly Global Irradiation Data:

The project location is 300km west to Bucharest city at 639m above sea level. For this location the Incident Global Irradiation is calculated with optimal inclination angle of 34° and annual irradiation deficit due to shadowing of 0,3%.

Hh: Irradiation on horizontal plane (Wh/m2/day)

Hopt: Irradiation on optimally inclined plane (Wh/m2/day)

H(90): Irradiation on plane at angle: 90° ( Wh/m2/day)

Iopt: Optimal inclination (Degree)

T24h: 24 hour average of temperature (°C)

NDD: Number of heating degree-days (-)

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Performance of Grid-connected PV:

The project location is 300km west to Bucharest city at 639m above sea level. For this location the Solar Electricity Generation estimation by PVGIS is calculated for a nominal PV system power of 10 MW (crystalline silicon), estimated losses due to temperature of 9%, estimated losses due to angular reflectance effects of 2,9%, other material losses of 14% and combined PV system losses of 24%.

Business Opportunity

In terms of RES of gross electricity consumption, Romania is on target. The potential of Romania in solar energy is considered the highest in SEE. The Banat, Oltenia and Dobrogea provinces were considered the most appropriate areas for PV farm developments. Even if the sun irradiation is free, solar energy producers receive incentives from the state, because the investments are very high. Through its progressive legislation, the government is creating one of Europe’s friendliest environments for RE developers and is encouraging future investments in the solar sector and not only. So, since 2004 green energy producers receive 3 TGC for each MWh of energy delivered into the system. In July 2010, the Romanian Parliament amended the law 139/2010 giving more incentives to RE producers. Finally, in July 2011, the EC had approved the law 139/2010. For instance, those in the solar sector (where 18% of green energy investments will go), get 6 TGC’s for 1 MWh but it’s not the case anymore as to ANRE insistence, the Romanian Parliament amended the law again (EGO 57/2013) in December 2013. Main changes regard the reduction of GC for solar from 6 to 3 took place in January 1, 2014 .

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The Project Scenario

• The Project is to manufacture and build a 10 MWp PV farm in a highly desirable location in Romania with proven solar irradiation conditions (1.300 kWh/kWp in North-Oltenia region).

• The amount of the deal is estimated to be in the region of €14 Million advanced over a 14-months period to cover manufacturing and management costs and could be paid off in period of less than 11-yrs based on revenues.

� €11.000.000 – Total cost of PV materials (1 – 1,1 Million €/MWp) � €300.000 – PV materials transportation & installing � €40.000 – Land development and leasing 1st year � €1.000.000 – ATR (50.000 – 100.000 €/MWp) � €140.000 – CA (1% of total investment) � €435.000 – Project development and expenses � €1.085.000 – Contingency

• Operational activity is at the mid of the 2nd year with current estimates showing yearly revenues (including incentives) of approx. €1,97 Million .

• AEP = 11,13 GWh, ROI = 10,2%, NPV = €5,69 Million, IRR = 15,5% .

• From that point on this would be a very profitable venture for all concerned.

• Opportunities to blue print this process and do more deals throughout Romania as demand continues to increase for alternative energy.

Action Plan

• Site Location – The proposed PV farm will be built on a leased plot of 64 hectares from the Local Council (co-founders have a Mandate). The proposed PV farm would be located 300 km west to Bucharest city (Capital of Romania). No agriculture is made in this zone. The plot location is hilly, nearby County road with a 14% loaded crossing 220kV HT national grid line.

• Company Formation – We as a Managing team are willing to incorporate the appropriate corporate structure that will best benefit both the project proponents and the investor. Considerations will include the need for a Romanian based entity that satisfies the requirements of the governing body.

• Administrative Process – The administrative process takes 6 months for a PV farm.

• Collateral – The group has neither liquidity nor collateral to offer.