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MBA Renewables, Investment and Financing ModuleGroup Work, Investor Presentation
Group 4
Carsten JungRiikka Lauhkonen-Seitz
Mario MarasOvaise Mohammed MurtuzaAdriana Stefanac
17 September 2013
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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
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Introduction1 Introduction
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IntroductionCountry and Sector Context
Republic of Kenya Vision 2030 key driver ENERGY
Fast growing electricity demand due to economic growth
Current capacity of 1,636 MWinsufficient to meet demand
Diversification of energy mix necessary as hydro power isvulnerable to climate change and fossil fuels have to beimported
High electricity costs
Up to 23,000 MW required until 2031
Government Strategy Wind as one of the priority resources to promote equitable access toquality energy services at least cost while protecting the environment
Potential of renewable energy in creating income and employment, contributing to low-cost,reliable energy supply and decreasing dependence on imported and expensive fossil fuels
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Introduction2 Project Description and Status
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Project DescriptionGeneral Project Information
Project name Kipeto Wind Energy Project
Location Kipeto, Kenya
Type of turbine GE 1.6-100
Turbine capacity 1.62 MW
Number of turbines 63
Total installed capacity 102.06 MW
Net Output 476,613 MWh/year
Net capacity factor 53%
Feed-in-Tariff 0.12 USD/kWh
Commercial operation date August 2014
Expected operational projectlifetime
20 years
CO2emission reductions ~295,000tCO2/year
Total Investment 297,870,744 USD
Project area (70km2, 1850m 2035m AMSL),position of wind turbines, map of Kenya
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Project Status
Project Parties Agreements
Project company Kipeto Energy Ltd Registered as SPVProject owner(s)
Craftskills Wind Energy International Ltd
General Electric
Joint Development Agreement signed
Turbine supplier General Electric Turbine supply contract signed
EPC Contractor General Electric EPC contract signed
Technical Service Provider General Electric 20 year O&M contract signed
Landowner Local community members 20 year land lease agreementLong-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 Ministry of Energy and Petroleum
Energy Regulatory Commission
Kenya Civil Aviation Authority
Kajiado County
UNFCCC
National Environment Management
Authority (NEMA)
FiT approval obtained
Generation license obtained
Operating permit obtained
Construction permit obtained
CDM registered
EIA license obtained
Bank Qatar National Bank Loan agreement signed
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Introduction3 Technology
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TechnologyKey technology details of turbine, other facilities at project site
Other facilities
! 34 km underground cabletrench system
! Substation incl. step uptransformers
(remote control via SCADA)
! 20 km 220kV transmissionline
! Main and back-up meteringsystem
(remote access via GSM)
! 324 m2x 2 m concrete bases
! Substation control building
! 32 km access roads
GE 1.6-100
Manufacturer GE Energy
Rotor diameter 100 m
Area swept 7,854 m2
Number of blades 3Length of blades 48.7 m
Hub height 80 m
Cut-in wind speed 3.5 m/s
Cut-off wind speed 25 m/s
Rotor speed range 9.75 to 16.18 rpm
Nominal output 1,620 kW
Operational data 50 Hz
Lifetime 20 years
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Technical Parameter
Turbine technology GE Energy 1.6-100 GE Energy 1.6-100Number of turbines 63 63
Turbine capacity 1.62 MW 1.62Nominal plant capacity 102.06 MW 102.06 MWNominal electricityproduction 894,046 MWh/year 894,046 MWh/year
Electricity generation and Capacity FactorProbability P50 P90
Gross capacity factor 61% 51%Gross electricityproduction 545,368MWh/year 452,655 MWh/yearTopographic factor 101.90% 101.90%
Array efficiency 96.00% 96.00%Electrical efficiency 96.00% 96.00%
Availability 96.10% 96.10%Substation availability 99.00% 99.00%Icing and blade
degradation 99.00% 99.00%Power curve 99.00% 99.00%Hysteresis 99.80% 99.80%Grid curtailment 100.00% 100.00%Net electricityproduction 476,613MWh/year 395,589MWh/yearNet capacity factor 53% 44%
TechnologyElectricity Generation and Capacity Factor
Project area
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Introduction4 Cost and RevenueAssumptions
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Cost and Revenue AssumptionsMost important cost and revenue drivers
Tariff - FiT (2010) 120 USD / MWhAnnual escalation: 12% ofthe tariff
PPA duration 20 years
Annual escalation rate 2% US Fed inflation target
Annual generation 476.613 MWh Based on P50
Expected carbon creditrevenue 5.28 USD/CER CDM + Gold Standard
Total investment cost 297,870,744 USD
Investment / MW 2,918,584 USD
O&M costs (first year) 6,599,885 USD Annually escalated
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Cost and Revenue AssumptionsProfit and losses Taxes and depreciation
100% investment deduction allowance in the first year of operation
Losses to be carried forward
30% Corporate tax rate
20 year depreciation on hard costs, 5 year depreciation on soft costs
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Introduction5 Proposed FinancingStructure and Returns
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Proposed Financing StructureYour opportunity to SHARE(s) Growth
Selling price $ $70,362,678
Selling price $
Exclusive ofCERs
$67,020,917
Taschner GreenClimate
InvestmentsEquity IRR
> 21.27 %
Debt financing assumptions:
Interest rate: 8% annually
Term: 13 inclusive of 1 year grace period
USD based loan
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Proposed Financing StructureCash flows
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Proposed Financing StructureProject returns and debt service cover ratio
Project IRR (before tax) 16.36 %
Project IRR (before tax) incl.carbon credits
16.93 %
Project IRR (after tax) 14.37 %
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