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Lighting the Way- ADBs Rooftop Solar Project
Aiming Zhou
Energy Specialist
Asian Development Bank
7th Asia Clean Energy ForumManila, Phillippines
4-8 June 2012
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MWh
US Cents per kWh
# of MWh sold at each price point
Why Solar Energy
In 2010, $100 billion (approximately 5%) of global retail
electricity
demand could be competitively addressed with solar power~600 GWs
($2 Trillion of Solar)
201020152020
Area of solar competitiveness
Source: Jigar Shah, 2011
Solar ElectricityPrice Declining
ConventionalElectricity Price
Rising
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Approaches forSolar Project Financing
Bankable SolarProjects
PPA
Utility Owned
System Lease
Contractual Intermediary
User Owned Others
Fia
nncing
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1. Greening ADB Building Operations
Energy Efficiency (chillers, lighting etc.)
Solar Power Supply to ADB Headquarter Bldg
Others
Purposes of ADB567 kWp Rooftop Solar Project
2002ADB
EnvironmentPolicy
2003Environment,Health and
Safety Policy
2004Six SigmaProgram
2007
SustainabilityReport
2009
LEEDCertification
Process (Goldin 2011)
2011 beyond
Sustainabilityat ADB HQ
Photo Essay
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2.Technology Demonstration
3. Business Model, build-operate-transfer with PPA
Purposes of ADB571 kWp Rooftop Solar Project (continued)
ADB
Suntech/PropmechConsortium
PPA Power
Financing (commercial financiers) Construction (571kWp)
Operation (~ 613 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, over
6,640 square meters Solar power is sold to ADB at the
ratedecided by the bidding
Commercial Financier
Business
Financing
Loan
Repayment
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ADB Headquarters Complex
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Details of Procurement Process
1. 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
3. Project Development Construction , started in November, 2011
Trial operation and normal operation, May 2012
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Diagram of ADB Rooftop Solar System
571 kWpRooftop PV
System
ADB Substations
Meralco
34.5KV/380Y/200V
ADBHeadquaters
Compus
Inverters
613MWh/yr
Switch Busbar
18,300 MWh/yr
The solar system supplies about 3% ofthe electricity consumption
in ADBs
complex
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ADB Headquarters Complex -Before
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ADB Headquarters Complex -After
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Highlights No upfront cost to ADB
The business model uses a PPA between the Suntech/Propmech
Consortium (Project Implementer) and ADB (End User), wherebythe
project implementers bear the investment cost and O&M costsand
user purchase the electricity at bid price.
ADBs credit worthiness helps the consortium
secure non-recourse loan financingPPA will help the project
implementers to secure financing fromlocal commercial financiers.
With a 15-year PPA from ADB, thisproject becomes a bankable
project
Challenges to replicationChallenges could arise in countries
that have regulated andpartially deregulated electricity markets.
This model needspermission for third party-owned systems to sell to
end users
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Thank You !
Contact: [email protected]
More information:
www.adb.org/clean-energy
