Beruflich Dokumente
Kultur Dokumente
17PageSeptember
2013
1
Agenda
1. Introduction
2. Project Description and Status
3. Technology
4. Cost and Revenue Assumptions
5. Proposed Financing Structure and Returns
6. Risk Assessment
7. Project Attractiveness
Page 2
1 Introduction
Introduction
Page 3
Introduction
Country and Sector Context
Republic of Kenya
Vision 2030
Project Description
General Project Information
Project name
Location
Type of turbine
Turbine capacity
Number of turbines
Total installed capacity
Net Output
Net capacity factor
Feed-in-Tariff
Commercial operation date
Expected operational project
lifetime
CO2 emission reductions
Total Investment
Page 6
Project Status
Project Parties
Agreements
Project company
Registered as SPV
Project owner(s)
Turbine supplier
General Electric
EPC Contractor
General Electric
General Electric
Landowner
Long-term off-taker
KPLC Kenya Power and Lighting Company 20 year PPA (take-or-pay) signed
Grid operator
KPLC Kenya Power and Lighting Company Grid connection agreement in place
Relevant Authorities
Bank
Page 7
3 Technology
Introduction
Page 8
Technology
GE 1.6-100
Manufacturer
Rotor diameter
Area swept
Number of blades
Length of blades
Hub height
GE Energy
100 m
7,854 m2
3
48.7 m
80 m
3.5 m/s
25 m/s
Nominal output
Operational data
Lifetime
Page 9
1,620 kW
50 Hz
20 years
Other facilities
34 km underground cable
trench system
Substation incl. step up
transformers
(remote control via SCADA)
20 km 220kV transmission
line
Main and back-up metering
system
(remote access via GSM)
324 m2 x 2 m concrete bases
Substation control building
32 km access roads
Technology
GE Energy 1.6-100
63
1.62 MW
102.06 MW
GE Energy 1.6-100
63
1.62
102.06 MW
894,046 MWh/year
894,046 MWh/year
Project area
297,870,744 USD
Investment / MW
2,918,584 USD
Page 12
CAPEX
2%
0%
2%
2%
OPEX
Total
EPC
Cost
5%
Land lease
3%
13%
12%
Total
annual
service
and
maintenance
IDC
12%
Retrot
and
decommissioning
reserve
Financing
fee
3%
ConBngency
AdministraBon
1%
Page 13
59%
Community
trust
fund
Debt reserve
5 Proposed Financing
Introduction
Structure and Returns
Page 15
18%
Debt
12%
CraOskills
70%
Selling price $
$70,362,678
Selling price $
Exclusive of
CERs
$67,020,917
Taschner Green
Climate
Investments
Equity IRR
> 21.27 %
Page 17
25.00%
20.00%
16.93 %
15.00%
10.00%
14.37 %
IRR
5.00%
0.00%
14.88 %
Equity
IRR
Equity
IRR
P-IRR
before
P-IRR
before
P-IRR
aOer
P-IRR
aOer
excl.
CDM
tax
excl.
tax
tax
excl.
tax
CDM
CDM
21.27 %
21.40 %
Page 18
1.84
1.49
21.27 %
21.40 %
Page 19
6 Risk Assessment
Introduction
Page 20
Market risk
Risk level: low
Increasing demand markets secured
PPA signed long-term offtaker secured
- A World Bank credit guarantee (MIGA) issued in case of default of
Kenya Power
Regulatory risk
Risk level: low
Supportive local legislation, e.g. Energy Act 2006
Feed-in-Tariffs Policy on Wind, Biomass and Small-Hydro
Resource Generated Electricity, 2008, 2010, 2012
Kenya Vision 2030
Page 21
Political risk
Risk level: medium
Kenya WTO member
Ease of doing business: Report
by World Bank and IFC, Kenya
ranked 109 out of 182 countries
- Lack of infrastructure
- Lack of human capacity
- Corruption
- Government inefficiencies
- Security constraints
Resource risk
Risk level: low-to-medium
Wind measured with 3 meteorological masts always some risk
Experienced project development company Galetech Energy
Services consulted for wind measurement and turbine layout (Irish
based internationally focused renewable energy consultancy, other
reference projects in Africa)
wind measured for 2 years and 20 year historic correlation applied for
yield assessment
Technological risk
Risk level: low
Application of known, state-of-the-art turbine technology
Experienced turbine manufacturer (GE)
Turbine type selection based on onsite wind analysis
Page 23
Active stakeholder
consultation
Creation of employment
opportunities, capacity
building
Income to landowners
from land lease contracts
Local community trust
fund to receive a share of
revenues
Page 25
Other
Insurance
agreements in
place
Fixed
interest rate
(swap)
Land
contracts tied
to the project
even if
ownership
changes
7 Project Attractiveness
Introduction
Page 26
Project Attractiveness
Absolute Project Attractiveness Finance
Returns: 21.40% with Carbon Credits and 21.27 % without
Risk: Medium to low
Project qualified for CDM credits -> Rising prices net benefit to
investor
Rapid increasing demand for energy in Kenya and PPA signed
between Kipeto Energy and KPLC
Local wind energy friendly legislation in place
Kenya Vision 2030 encouraging energy security and
environmentally friendly energy
Opportunity for an excellent entry point into an untapped market
(Africa)
Page 27
Project Attractiveness
Absolute Project
Attractiveness Environment
CO2 emmission reductions
through replacement of fossil fuels
Reduction of dependence on fossil
fuel imports
Reduction of dependence on
hydropower (hydroelectric dams):
Due to severe drought seasons
electricity blackouts are common
Page 28
Absolute Project
Attractiveness Social
Creation of local employment
opportunities
Capacity building, technology
know-how transfer
Income to landowners from land
lease contracts
Local community trust fund will
receive a share of project revenues
Renewable energy production will
help decrease electricity cost and
thus boost manufacturing sector
Project Attractiveness
Page 29
Project Attractiveness
Relative Project Attractiveness
Investments in the finance market such as stocks can provide a
relative high rate of return except that they are high risk (purchased
BB stocks for $55.00 in 2009 and down to $10.00 a share)
Money in the bank will provide a safe investment option but low
rate of return (3-5% maximum)
This investment is a low risk investment with a relative high
rate of return and significant positive impacts on sustainable
development in Kenya
References
Taschner, A. (2012). Risk and risk management in project finance. MBA Renewables Learning Material. Institute for Distance
Learning of the Beuth University of Applied Sciences Berlin.
Tiedemann, A. (2012). Project Financing for Wind Energy. MBA Renewables Learning Material. Institute for Distance Learning of
the Beuth University of Applied Sciences Berlin.
UNFCCC/CCNUCC (2012). Kipeto Wind Energy Project. Project Design Document Form for CDM Project Activities (F-CDM-PDD).
Retrieved on 29 August 2013 from http://cdm.unfccc.int/Projects/DB/JCI1355475722.72/view
Ministry of Energy (2010). Feed-in-Tarrifs Policy on Wind, Biomass, Small-Hydro, Geothermal, Biogas and Solar Resource
Generated Electricity. Retrieved on 29 August 2013 from
http://kerea.org/wp-content/uploads/2012/12/Feed-in-Tariff-Policy-2010.pdf
Ministry of Energy (2004). Sessional Paper No. 4 on Energy. Retrieved on 29 August 2013 from
http://www.renewableenergy.go.ke/downloads/policy-docs/sessional_paper_4_on_energy_2004.pdf
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References
Greentechmedia (2013). A Record Year for World Wind Power in 2012. Retrieved on 9 September from
http://www.greentechmedia.com/articles/read/A-Record-Year-for-World-Wind-Power-in-2012
STRATCO (2013). Determining Wind Speed. Stratco (Australia) Pty Limited. Retrieved on 29 August from http://stratco.com.au/
pdf/Brochures/other/Wind_Speed_Design_Guide.pdf
IEEE PES Wind Plant Collector System Design Working Group (2009). Wind Power Plant Substation and Collector System
Redundancy, Reliability and Economics. University of Tennessee. Retrieved on 29 August from
http://power.eecs.utk.edu/pubs/Fangxing_li_ieeepes2009_5.pdf
Kenya Power (2012). Annual Report and Financial Statements. Retrieved on 29 August from
http://www.kenyapower.co.ke/tender_docs/ANNUAL%20REPORT%20AND%20FINANCIAL%20STATEMENTS
%202011-12%20EMAIL.pdf
Republic of Kenya, Ministry of Energy (2011). Updated Least Cost Power Development Plan. Retrieved on 29 August 2013 from
http://www.renewableenergy.go.ke/downloads/studies/LCPDP-2011-2030-Study.pdf
http://www.bssa.org.uk/faq.php?id=26. Retrieved on 07 September 2013.
http://www.windenergie-im-binnenland.de/powercurve.html. Retrieved on 07 September 2013.
http://www.wind-energy-market.com/en/wind-turbines/big-plants/details/details/bp/ge-16-100/. Retrieved on 07 September 2013.
http://www.sectorspdr.com/shared/pdf/spdr-periodic-table-web.pdf. Retrieved on 11 September 2013.
http://www.ge-energy.com/wind. Retrieved on 29 August 2013.
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