Aiming Zhou - Case Studies of 567KW Rooftop Solar PV in ADB HQ and NED Solar Farm in Thailand

8/4/2019 Aiming Zhou - Case Studies of 567KW Rooftop Solar PV in ADB HQ and NED Solar Farm in Thailand

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Walk the TalkWalk the TalkCase Studies of 567KW Rooftop Solar PV in ADBCase Studies of 567KW Rooftop Solar PV in ADB ss

HQ and NEDHQ and NEDs 73MW Solar Farm in Thailands 73MW Solar Farm in Thailand

Aiming ZhouAiming Zhou

Energy SpecialistEnergy Specialist

Regional and Sustainable Development DepartmentRegional and Sustainable Development Department

Bangladesh Solar Development Forum20, September

Dhaka


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ContentContent

ADBADB s Current Clean Energy Investments Current Clean Energy Investment

Examples ofExamples ofSolar Project Financing bySolar Project Financing byADBADB

ADBADB s Rooftop Solar Project in 2011s Rooftop Solar Project in 2011

Thailand 73MW Solar Project in 2010Thailand 73MW Solar Project in 2010

ConclusionsConclusions


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ADB Low-Carbon Programs and Initiatives

Clean Energy Program

Asia Solar Energy Initiative

Quantum Leap in Wind

Energy for All

Promoting Carbon Capture and Storage

Asia Climate Change and Clean Energy VentureCapital Initiative

Carbon Market Program TSF, APCF, FCF

Sustainable Transport Initiative


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ADBADBsCompositionofCEFinancingsCompositionofCEFinancing

(Cumulative

2008(Cumulative

2008

2010,

in

US$

million)2010,

in

US$

million)

Hydro Wind Solar Others

1,554 676 206 459

54% 23% 7% 16%

Total Energy-related Investment (2008-2010): $ 9.1 BillionTotal Clean Energy Investment (2008-2010): $ 4.8 Billion.

Note: Others in the breakdown of RE projects pertains to biomass/biogas, waste to energy


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1

10

100

1000

10000

100000

1000000

2 3 4 5 6 7 8 910

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

>27

MWh

US Cents per kWh

# of MWh sold at each price point

Why Solar EnergyWhy Solar EnergyIn 2010, $100 billion (approximately 5%) of global retail electrIn 2010, $100 billion (approximately 5%) of global retail electricityicitydemand could be competitively addressed with solar powerdemand could be competitively addressed with solar power

~600 GWs ($2 Trillion of Solar)~600 GWs ($2 Trillion of Solar)

201020152020

Area of solar competitiveness

Source: Jigar Shah, 2011

Solar Electricity

Price Declining

Solar Electricity

Price Declining

Conventional

Electricity PriceRising

Conventional

Electricity PriceRising


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Approaches forApproaches for

Solar Project FinancingSolar Project Financing

Bankable SolarProjects

PPA

Utility Owned

System Lease Contractual Intermediary

User Owned Others


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2011 ADB2011 ADB s 567kW Rooftop Solars 567kW Rooftop Solar

Project at HeadquatersProject at Headquaters


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1. Greening ADB Building Operations1. Greening ADB Building Operations

Energy Efficiency (chillers, lighting etc.)Energy Efficiency (chillers, lighting etc.)

Solar Power Supply to ADB Headquarter BldgSolar Power Supply to ADB Headquarter Bldg

OthersOthers

Purposes of ADBPurposes of ADB

567 kWp Rooftop Solar Project567 kWp Rooftop Solar Project


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2.2. Technology Demonstrat ionTechnology Demonstrat ion

3. Business Model, build3. Business Model, build --operateoperate--transfer w ith PPAtransfer w ith PPA

Purposes of ADBPurposes of ADB

567 kWp Rooftop Solar Project567 kWp Rooftop Solar Project (continued)(continued)

ADB

Suntech/PropmechConsortium

PPA Power

Financing (commercial financiers) Construction (567 kWp) Operation (~ 600 MWh per year) Transfer (buyout option within 15 yearsand free at year 16)

Financing (commercial financiers) Construction (567 kWp) Operation (~ 600 MWh per year)

Transfer (buyout option within 15 yearsand free at year 16)

Portion of Facility Building rooftop isleased for 15 years at $1/sq meter, totalestimated area size is 5,166 sq meter Solar power is sold to ADB at the rate

decided by the bidding

Portion of Facility Building rooftop isleased for 15 years at $1/sq meter, totalestimated area size is 5,166 sq meter Solar power is sold to ADB at the rate

decided by the bidding

Commercial FinancierCommercial Financier

Business

Financing

Loan

Repayment


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ADB Headquarters ComplexADB Headquarters Complex


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Details of Procurement ProcessDetails of Procurement Process1. Pre Bidding

Screening and clearance of legal, technical and commercial aspects

for the project within Manila Jurisdiction Internal process for project development and approval by ADB

Management

2. Bidding Process

The Bidding Process: Conception pre- qualification criteria Draft technical and legal specification document Invitation to bid to qualified bidders (July, 2010) Selection of contractor / PPA signed

2. Bidding Process

The Bidding Process: Conception pre- qualification criteria Draft technical and legal specification document Invitation to bid to qualified bidders (July, 2010) Selection of contractor / PPA signed

3. Project Development Construction (5-6 months) Trial operation and normal operation (December, 2011 February ,2012)


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Diagram of ADB Rooftop Solar SystemDiagram of ADB Rooftop Solar System

567 kWpRooftop PV

System

ADB SubstationsADB Substations

Meralco34.5KV/380Y/200V

ADB

HeadquatersCompus

InvertersInverters

600MWh/yr

SwitchSwitch BusbarBusbar

18,300 MWh/ yr

The solar system supplies about 3%

of the electricity consumption inADBs complex


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ADB Rooftop Solar Project Visual ImpactADB Rooftop Solar Project Visual Impact


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HighlightsHighlights

No upfront cost to ADBNo upfront cost to ADBThe business model uses a PPA between the Suntech/PropmechThe business model uses a PPA between the Suntech/Propmech

Consortium (Project Implementer) and ADB (End User), wherebyConsortium (Project Implementer) and ADB (End User), whereby

the project implementers bear the investment cost and O&M coststhe project implementers bear the investment cost and O&M costs

and user purchase the electricity at bid price.and user purchase the electricity at bid price.

ADBADB s credit worthiness helps the consortiums credit worthiness helps the consortium

secure nonsecure non--recourse loan financingrecourse loan financing

PPA will help the project implementers to secure financing fromPPA will help the project implementers to secure financing fromlocal commercial financiers. With a 15local commercial financiers. With a 15--year PPA from ADB, thisyear PPA from ADB, this

project becomes a bankable projectproject becomes a bankable project

Challenges to replicationChallenges to replication

Challenges could arise in countries that have regulated andChallenges could arise in countries that have regulated and

partially deregulated electricity markets. This model needspartially deregulated electricity markets. This model needs

permission for third partypermission for third party--owned systems to sell to end usersowned systems to sell to end users


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2010 ADB Funded Project in2010 ADB Funded Project in

Thailand:NED Solar Power ProjectThailand:NED Solar Power Project


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Project FeaturesProject Features 73 megawatt (gross) in Lopburi Province, Central73 megawatt (gross) in Lopburi Province, Central

Thailand.Thailand.

ThinThin--filmfilm

ThailandThailands first large, utilitys first large, utility--scale solar generating facility.scale solar generating facility.

55--year automatically renewable PPA between withyear automatically renewable PPA between withElectricity Generating Authority of Thailand (EGAT)Electricity Generating Authority of Thailand (EGAT)under the Small Power Producers Program.under the Small Power Producers Program.

MultiMulti--Sponsors: CLP Group, Mitsubishi, and theSponsors: CLP Group, Mitsubishi, and the

Electricity Generating Public Company.Electricity Generating Public Company.


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Contractual StructureContractual Structure

17


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HighlightsHighlights ADB loanADB loan

Thai BahtThai Baht--denominated loan for $63 million equivalent (25% of projectdenominated loan for $63 million equivalent (25% of project

cost)cost)

18 years tenor, back18 years tenor, back--ended equity injection, nonended equity injection, non--recourse projectrecourse projectfinancingfinancing

Attractive fixed rate in Thai Baht covering all disbursements aAttractive fixed rate in Thai Baht covering all disbursements andnd

lockedlocked--in over the entire 18 years tenorin over the entire 18 years tenor

ADB grantADB grant

$2 million grant from ADB$2 million grant from ADBs Clean Energy Financing Partnership Facilitys Clean Energy Financing Partnership Facility

to cover any contingency costs arising from the use of highly coto cover any contingency costs arising from the use of highly complex,mplex,

innovative thin film PV technology on a large scale.innovative thin film PV technology on a large scale.


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ADBCleanEnergyFinancingtoward $2BillionADBCleanEnergyFinancingtoward $2Billion

by

2013by2013

Source: ADB Database

Go Solar


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Thank You !Thank You !

Contact:[email protected]:[email protected]

Moreinformation:Moreinformation:www.adb.org/cleanwww.adb.org/cleanenergyenergy

Documents

Aiming Zhou - Case Studies of 567KW Rooftop Solar PV in ADB HQ and NED Solar Farm in Thailand