+TRINCOMALEE

WIND POWER

PROJECT

13.11.2015

Daichi Okamoto (2B5046)   (Group Leader)Samangika Abheysinghe (2B4002)Bannick, Swagat Shyam (2B4011)Senwayo, Lucia Veronica Denis (2B4047)Amila D. K. Nawaratne  (2B4034)

GROUP - D

+

Project Objective■Sri Lankan government has set goal to meet at

least 20% of the country’s total electricity requirement through renewable energy sources by 2020.

■TPP plans to generate and contribute 35 MW of electricity in to the Central Grid through wind energy at viable price for the Government

■Have been proposed by SSLDA and consortium for a credible Wind Power Project to be initiated in Trincamole, Sri Lanka

■Finance team and Energy Team has done a due Diligence

■Here are our Findings for your kind consideration

Proposal Context

+Location >>>> Trincomalee - Sri Lanka

+

2. SPONSORSHIP & MANAGEMENT

+History and Business of Sponsors

1. SSLDA Power Company■ 25 year experiences as a financial and technical assistance in

medium and large scale energy projects■ Enhance awareness on environmental and social issues2.Ceylon Electricity Board (CEB)

■ Established on the 1st November 1969 under the Act of Parliament No. 17 of 1969 in Sri Lanka

■ Empowered to generate electrical energy, transmit the same and distribute it to reach all categories of consumers and to collect the revenue.

■ Has conducted 167 non conventional renewable energy projects

+History and Business of Sponsors3.Mitsubishi Heavy Industries Ltd.(MHI)

• Highly renowned for high quality wind turbine generators.

• Manufactured and delivered more than 2,250 units all over the world.

+

3. MARKET AND SALES

+Wind Power Demand■ The rising demand for energy has doubled in Sri Lanka due to the

booming economy. ■ Emergency of energy intensive industries, such as agriculture and tourism,

cropping up.■ The potential for growth in the industry is expected to reach at least 300

megawatts of wind power being added to the national system within the next three years.

■ Limitation of fossil fuel

■ sources of energy : 45% hydropower, 48% thermal sources and 7% New-renewable sources of energy. However:■ Considerable amount of wind power potential installed capacity is available■ There is possibility to develop further around 100MW wind power generations

in Sri Lanka.

■ As alternative energy became vital to meet the demands in Future.

■ The government has set a goal to meet at least 20% of the country’s total electricity requirement through renewable energy sources by 2020.

■ Friendly Environment

+Power Generation And Sales

+Power Generation And Demand

+Electricity Production Cost■ Cost of wind power generation is competitive with the other sources

of renewable in Sri Lanka.

■The estimated cost of energy for wind energy is 7.70 Rs./kWh and the average cost of energy in Sri Lanka is 13.40Rs./kWh.

SOURCE : Https://Www.Google.Com.Br/#Q=nayaraya+wind+power+in+sri+lanka

+How Cost Competitive Is Onshore Wind Power?

■ The range of generation costs for onshore wind is the cheapest renewable technology.

■ Easy-to-develop onshore site with high winds speeds in a country where manufacturing and labor costs are low.

■ Offshore location with low wind speeds is more than five times as expensive.

■ For every MW/h of electricity generated, onshore wind costs roughly $113 per MW/h, compared to gas and coal which can cost up to around $176 per MW/h, respectively. Nuclear power, offshore wind and solar energy are at roughly $134 per MW/h.

+How cost competitive is Onshore wind power?

The generating costs is low in Onshore wind power Onshore installations and turbine costs has been falling, while

offshore has been increasing

SOURCE : http://www.windpowermonthly.com/article/1330525/onshore-wind-competitive-ever

+4. TECHNICAL FEASIBILITY, MANPOWER,

RAW MATERIAL AND ENVIRONMENT

+ BRIEF DESCRIPTION OF THE MANUFACTURING PROCESS.

+ COMMENTS ON SPECIAL TECHNICAL COMPLEXITIES AND NEED FOR KNOW-HOW

AND SPECIAL SKILLS.

COMPLEXITIES & SKILLS

FINANCE MECHANICAL ENGINEERING

ENVIRONMENT ENGINEERING

ELECTRICAL ENGINEERING

+ POSSIBLE SUPPLIERS OF EQUIPMENT.

+ PROJECTED OPERATING COSTS BY MAJOR CATEGORIES OF EXPENDITURES

GENERAL LIABILITYPROPERTYBUSINESS INCOME (LOSS OF PROFIT)EQUIPMENT PROTECTION (FROM BREAKDOWN)MANUFACTURER'S WARRANTY (USUALLY 2 YEARS WITH THE POTENTIAL TO EXTEND OUT TO 5)

+IMPORT RESTRICTIONS, IF ANY, ON REQUIRED RAW MATERIALS.With the expectation of promoting electricity generation based on non conventional renewable energy, the Government of Sri Lanka introduced an Energy Policy to achieve a 10% target of power generation through non conventional renewable energy by year 2015.There are four important aspects of Regulations that has to be taken care of :-• Getting Import Licenses and approval from Department of Import & Export

Control• Approval from Ministry of Environment• Approval from Ministry of Urban Development• Approval from Central Environment Authority & Electricity BoardPROPOSED PLANT SIZE IN COMPARISON WITH (COMPETITORS’

PLANTS)Project Name Operator Output

Ambewela Aitken Spence Ace Wind Power P L 3

Vallimunai Beta Power 12

Pollupalai Joule Power 12

Mampuri Senok Wind Energy 10+10.5+10.5

Madurankuliya Daily Life Renewable Energy 12

Nirmalapura Nirmalapura Wind Power 10.5

Uppudaluwa PowerGen Lanka 10.5

+ POTENTIAL ENVIRONMENTAL ISSUES AND HOW THESE ISSUES ARE TO BE ADDRESSED

In Trincamolee Sri Lanka, there are multiple factors to be considered :-• Land Usage Pattern• Endangering the domestic and wild animals in the bio

diversity habitat• Being an marine habitat, lot of aerial activities by

birds and other flying creatures might be disrupted• Public Health & Community

• Sound and visual impact are the two main public health and community concerns associated with operating wind turbines.

• Life Cycle Global Warming Emissions• There are emissions associated with other stages

of a wind turbine’s life-cycle, including materials production, materials transportation, on-site construction and assembly, operation and maintenance, and decommissioning and dismantlement.

+

5.FINANCE

+

PROJECT

COST TABLE

+Trincomalee Wind Power ProjectFinancing & Scheme

Trincomalee Wind Power Project

($50mill)

IFC – International Finance

Corporation

CEB (Ceylon Electricity Board)

SSLDA Power

Company

Project finance

$10 millLoan

$7.5mill Equity

$12.5millEquity

assist the financial plan and environmental issues

Assist technical issues

Electricity

Commercial Bank of Ceylon

$16 millLoan

Others$4 millEquity

+

+

6.GOVERNMENT SUPPORT AND REGULATIONS

+Government Support and Regulations

Government Economic

Development ProgramDevelop 5 Strategic

Hub

Energy

Knowledge

commercialAviation

Naval & Maritime

Government Objective To make Sri Lanka an energy self-sufficient nation by 2030

country secured with energy by minimizing the use of fossil fuels, and moving towards renewable energy

Investment OpportunityDeveloping & Promoting Of Non Conventional Energy Sources With

Improved Technology

+Supportive Government Policies

Economic liberalization

No restrictions on repatriation

of earnings, fees, capital

Safety of foreign

investment is guaranteed by the constitution

Index of Economic Freedom -ranked 90

Doing Business Ranking 99

No.01 in South Asia

Transparent investment laws

Total foreign ownership is

permitted

double taxation avoidance

agreements 38 countries

Bilateral investment protection

agreements with 28 countries

A safeguard against expropriation and non-commercial risks

Founder member of the Multilateral Investment

Guarantee Agency (MIGA)

An investment guarantee agency of the World Bank

+Expectant Contribution of Project to Economic Development

Increase FDI

Ensure sustainable energy supply to the economy

Generate direct and indirect employment to economy

Facilitate other strategic development areas (Hub)

Productivity improvement and Growth of the country economy

+

WE APPRECIATE YOUR TIME AND EFFORT

OUR RECOMMENDATION

PROJECT IS GREEN FOR APPROVAL AND SANCTION BECAUSE OF :-

• ENERGY INDUSTRY• ALLIGNED WITH GOVERNMENT OBJECTIVES• NON RISK EQUITY & SPONSORS• DESIRED BREAK EVEN & FINANCIALLY FEASIBLE• GOVERNMENT AND PUBLIC SECTOR BACKED• ENVIRONMENTALLY SUSTAINABLE• ROI IN LINE WITH OUR TERMS