Global Solar EPC Summit India, 2011

20-21st June 2011, Crowne Plaza, New Delhi

Renewable Markets India

Indias Green Business Centre www.renewablemarketsindia.com

Akoda India*: Optimal EPC and Financing Contracts

June 2011

We, the players in the solar industry, should always remain Optimistic when facing all the difficulties and challenges of the industry...

Agenda
Akoda India - Introduction Optimal EPC and financing Contracts Summary Best position for large-scale projects

Akoda India - Introduction

1. 2. 3. Akoda India* started its operation in India in July 2010. The company is active in the PV market sector in India. Akoda India is part of FK Group. Akoda India* is focused on the following activities:
We develop, construct, and invest in Largescale solar projects in India. We are working with local partners (i.e. Indian companies) who have strong connections and extensive experience in India. Our partners have a proven financial strength.
* We are currently in the process of incorporating the company in India

4.

The office of Akoda India is located in New Delhi.

The office address is: 309, Golf Apartments, Maharishi Ramana Marg, Opp. Khan Market, New Delhi

Who is FK Group?
F.K. Group manufactures and supplies generators to countries in Latin America, Africa, Eastern Europe, Western Europe, and the Far East. F.K. Group is a major contractor for the design and construction of power stations, and supplying all electrical equipment, control and high tension panels for power stations, in Latin America, Africa, and East Europe. F.K. Group has build power stations in Israel and abroad with a total capacity of over 650MW. F.K. Group is an owner of power stations in Israel and abroad of over 525MW

FK Group Operating units

o Diesel Generators supply & installation o Control panels o Synchronization panels o soft changechange-over No No-break rotating & static UPS

o Power Stations: Design & Installation o Natural Gas & Heavy Fuel Power Stations

o Power Stations in Latin America

o Solar Energy

o Solar Energy - India o Diesel Generators supply & installation, Poland

FK Group Global Presence

The Global presence of FK Group:
ISRAEL: Head-quarter, Power Station, sell of generators, Solar Projects JAMAICA: Power Station: 5 MW GABON: Power Station: 70 MW BRAZIL: Power Stations: 401 MW ESTONIA: Sales of generators ROMANIA: Energy Center CUBA: Power Stations: 36 MW ANGOLA: Power Stations: 1.7 MW NAMIBIA: Solar Projects under development 25 MW POLAND: A subsidiary of FK Group: Horus Energia - Sales and installations of generators CROATIA: Solar Projects under development 20 MW KAZAKHSTAN: Power station under development 100MW RUSSIA: Sales of generators SOUTH KOREA: Sales of generators

EQUATORIAL GUINEA: Energy Center

Akoda India: Targets for 2011 2013

Akoda India is focused on developing and installing large-scale PV farms in India. The total capacity the company is planning to install, per year, is:

2011 2012 2013

25MWp 200MWp 200MWp

Expansion plan: During 2011 Akoda India will operate as EPC. In 2012 and 2013 Akoda India will operate also as a Project Developer and will invest in its own projects, along with Indian partners.

Akoda Indias Strategic Partners for the Indian Market

To better exploit the opportunities in the Indian PV Market, Akoda India has established strategic co-operations:
1. Cooperation with 2 leading European EPCs. The cooperation will be for large-scale projects 2. Co-operations with strong local partners who has experience in the Energy and the Real-Estate sectors in India. The local partners assist Akoda India in the following: project development (tenders processes, permits, PPAs), relationships with local authorities, banks, and with local sub-contractors.

Agenda
Akoda India - Introduction Optimal EPC and financing Contracts Summary Best position for large-scale projects

Investment in Solar Projects

We want the investment in Solar Projects to become:

How???

Return on Solar Projects

Return on Equity ROE:
reflects the quality of the project financing. Best parameter to assess projects profitability Best comparative parameters.

Levelized cost of Energy

Not relevant for our discussion!

What affect the Return?

Binding contracts:
The quality of the EPC contract The quality of the O&M contract The contract with the site/roof owner PPA agreement Insurances

The quality of the Projects financing is derived from the Contracts bankability

Optimal Planning
The basic parameters:
The site (topography, roads,..) Weather conditions (irradiation, temperature, wind) Connection to Grid Terms & Conditions of PPA

The goal:
Maximal return Measurable performances

Issues to consider The site

Panels Disposition vs. cost of land and infrastructure Optimal panels disposition vs. cost of sub-structure Shadowing maximizing projects size vs. reducing shadowing Inverters planning centralized or decentralized (string inverters vs. central inverters)

Issues to consider Weather conditions

Issues to consider Weather conditions

Not under our control, but can be predicted We have to build a system of relative measurements (PR, comparative performances) We have to define a reference point for comparison.

Issues to consider Connection to the Grid

Reduce transmission costs vs. cost of transmission infrastructure Improvement of connection point to the grid vs. cost (and time) of infrastructure & permits

 if we want to increase return by 1%

Reduce interest rate by 0.35% Loan for 18 years instead of 17

We can(not) do also this

Reduce maintenance costs by 13% Reduce 60% in Insurance fees Hope that the sun will shine more (only 1.25%) Or, hope that the panels will have a 1.25% more capacity than written Or, no buffer for unexpected

We dont take insurance and maintenance risks. We dont rely on hopes

Maximizing return
ROE right measurement Smart planning maximizes return The return model must be valid and measurable.

Quality of the Projects financing derived from quality and bankability of contracts.

EPC vs. Financing Agreements

To ensure maximum return on projects and minimal risks: or,

We dont want to find ourselves:

Short Historic background

The real story.

Agenda
Akoda India - Introduction Optimal EPC and financing Contracts Summary Best position for large-scale projects

Akoda India* Best Positioned for Large-Scale Projects in India

Worldwide experience in PV project Partnership with leading European EPC and PV developers in Europe, Africa, USA and India. Vast experience in managing the entire business processes in the energy sectors. Strong financial capabilities. Operational, maintenance and infrastructure experience. In-Depth technology and market knowledge In-house experts for licensing, application, engineering and techno-economic analysis Strong financial capabilities. Long experience in securing funds for PV projects.

* We are currently in the process of incorporating the company in India

Contact Us

Thank you!

Contact Us
Contact Person: Hana-Muriel Setteboun, Ph.D., Phone: +972-54-811-8800 hanas@akoda-power.com

Office address in India: 309, Golf Apartments, Maharishi Ramana Mars, Opp. Khan Market, New Delhi 110003, Tel: +91-11-24625680, Fax: + 91-11-24625679