Economic And Social Commission For Western Asia
Mr. Abdel Ra’uof Sheikh SamihGeneral Manager
Hebron Electric Power Company
UNDA RENEWABLE ENERGY
ESCWA PIPELINE PROJECTS
/ United Nations Economic Commission for Europe
UNDA PROJECT CLOSING WORKSHOP:
“Renewable Energy UNDA project conclusions and way forward”
13-14 December 2017, Beirut - Lebanon
UNDA PROJECT ON “PROMOTING RENEWABLE ENERGY INVESTMENTS
FOR CLIMATE CHANGE MITIGATION AND SUSTAINABLE DEVELOPMENT”
Hebron Municipality/ Hebron Electric Utility - Palestine
• RE6: 1 MW Solar Energy project - distributed
• RE7: 1 MW Solar Energy project – Ground Mounted
• RE8: MSW Gas Generation: 1000KW (Solid waste plant)
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
ESCWA provided technical assistance for 3 RE Projects
developed by Hebron Electric Utility for Hebron
Municipality – Palestine : RE -P6 , RE- P7 and RE- P8
• RE-P6: 1 MW Solar Energy project - distributed
• RE-P7: 1 MW Solar Energy project – Ground
Mounted
• RE-P8: MSW Gas Generation: 1000KW (Solid waste
plant)
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-P6 PALESTINE✓1 MW Solar Energy project in Hebron, West Bank,
Palestine involving installation of roof top PV on Industrial, Commercial and Residential buildings.
✓The project is initiated by Hebron Electric Power Company. The aim is to reduce the bills paid to the electricity supplier to Hebron and supply part of the electricity from RE sources.
✓The main beneficiary will be the Municipality of Hebron
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
PV Solar roof top project: covers open roof tops of:
• Residential buildings and houses in Hebron Citymainly those who are near Israeli settlements.
➢ Total number of houses benefiting from the project:100 houses of 3 kW each
➢ Total number of industrial customers benefitting fromthe project: 20 sites of 20 kW each
➢ Total number of commercial building benefitting fromthe project: 15 of 20 kW each
• All these projects to be connected to the gridindividually via Net Metering on the LV system
Total power =1 MWp
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
Assumptions
Discount Rate 8%
Exchange rate ($/LC) 0.28
Installed capacity 1 MWpAnnual production 1500 MWh
Annual degradation 0.5%Net production 1500 MWhDepreciation period 15 yearOPEX in % of investment 3% % of investment
$ LCProject cost 1,500,000 5,357,143 Tariff $/MWh 110.00 392.86 LCOE $/MWh 126.42 451.51
Finance scenarios5% equity 95% grant 5% equity 45% loan 50% grant
Loan interest 1.25% 1.25%Loan tenor - Year 15 15 Grace Period -Year 1 IRR on total investment 137% 4%Cum disc cash @ year 20 in $ 891,169 450,318 min DSCR 0 1.83
RE-
P6
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-
P6
Income statement
USD 5% equity 95% grant 5% equity 45% loan 50% grant
Net electricity generation (MWh) 28,617 28,617
Electricity consumed for own uses 28,617 28,617
Tariff 1
Revenue (Bill saving) 2,833,069 2,833,069
Tariff 1
Expenditure 2,400,000 2,400,000
Operating expenses 900,000 900,000
Depreciation 1,500,000 1,500,000
Operating income 433,069 433,069
Financial expenses 63,281
Total expenditure 2,400,000 2,463,281
Net income before taxes 433,069 369,787
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
ESCWAProject Name RE6
Financing Interest rate
Loan duration
reimbursement period
per yearGrace period
Net incomebefore taxes
IRR project (based on total investment)Equity Soft Loan Grant
5% 95% 0% 6% - 7 to 9% 15 Years 4 per year 5 Years 943,840 21%
Amend 1 5% 0% 95%1.25% - 7 to
9% 15 Years 4 per year 1 Year -239,040 3%
Amend 2 5% 45% 50%1.25% - 7 to
9% 15 Years 4 per year 1 Year -465,045 -2%
5% 25% 70%
HEPCO
Financing Interest rate
Loan duration
reimbursement period
per yearGrace period
Net incomebefore taxes
IRR project (based on total investment)Equity Soft Loan Grant
5% 95% 0% 6% - 7 to 9% 15 Years 4 per year 5 Years -1,728,752 ?
Amend 1 5% 0% 95%1.25% - 7 to
9% 15 Years 4 per year 1 Year 433,069 137%
Amend 2 5% 45% 50%1.25% - 7 to
9% 15 Years 4 per year 1 Year 369,787 4%
5% 25% 70%
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-P7 PALESTINE✓1 MW Solar Energy project in Hebron, West Bank, Palestine:
Installation of ground mounted PV South of Hebron near waste
water treatment plant.
✓The project is initiated by Hebron Electric Power Company. The
aim is to reduce the bills paid to the electricity supplier to Hebron
and supply part of the electricity from RE sources.
✓The main beneficiary will be the Municipality of Hebron
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-
P7
Name PV Solar Power, 1MW ground mounted
Country Palestine
Organisation Hebron Electric Power Company
Assumptions
Exchange rate ($/LC) 0.28
Discount rate 8%
Installed capacity 1 MWp
Annual production 1500 MWh
Annual degradation 0.5%
Net production 1500 MWh
Depreciation period 15 year
OPEX in % of investment 3% % of investment
$ LC
Project cost 1,500,000 5,357,143
Tariff $/MWh 110.00 392.86
LCOE $/MWh 126.42 451.51
Finance scenarios
5% equity 95% grant 5% equity 25% loan 70% grant
Loan interest 1.25%
Loan tenor 15
Grace period 1
IRR on total investment 137% 3%
Cum disc cash @ year 20 in$ 891,169 646,251
min DSCR 3.29
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-
P7Income statement
in USD5% equity 95% grant 5% equity 25% loan 70% grant
Net electricity generation (MWh) 28,617 28,617
Electricity consumed for own uses 28,617 28,617
Tariff 1
Revenue (Bill saving) 2,833,069 2,833,069
Tariff 1
Expenditure 2,400,000 2,400,000
Operating expenses 900,000 900,000
Depreciation 1,500,000 1,500,000
Operating income 433,069 433,069
Financial expenses 35,156
Total expenditure 2,400,000 2,435,156
Net income before taxes 433,069 397,912
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
ESCWAProject Name
RE7
Financing Interest rate Loan duration
reimbursement periodper year
Grace periodNet incomebefore taxes
IRR project (based on total
investment)Equity Soft Loan Grant
5% 95% 0% 3% - 7 to 9% 15 Years 4 per year 5 Years 1,017,963 24%
Amend 1 5% 0% 95%1.25% - 7 to
9% 15 Years 4 per year 1 Year -239,040 3%
Amend 2 5% 45% 50%1.25% - 7 to
9% 15 Years 4 per year 1 Year -364,598 0%
5% 25% 70%
HEPCO
Financing Interest rate Loan duration
reimbursement periodper year
Grace periodNet incomebefore taxes
IRR project (based on total
investment)Equity Soft Loan Grant
5% 95% 0% 3% - 7 to 9% 15 Years 4 per year 5 Years -1,254,940 ?
Amend 1 5% 0% 95%1.25% - 7 to
9% 15 Years 4 per year 1 Year 433,069 137%
Amend 2 5% 45% 50%1.25% - 7 to
9% 15 Years 4 per year 1 Year 397,912 3%
5% 25% 70%
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-P8 PALESTINE✓1 MW MSW Gas Generation project South of Hebron, Yatta Landfill
in Hebron, West Bank, Palestine
✓ involving installation of gas collection system for the gas produced
from the landfill and gas engines to generate power.
✓ The project is initiated by Hebron Electric Power Company. The aim
is to reduce the bills paid to the electricity supplier to Hebron and
supply part of the electricity from RE sources.
✓The main beneficiary will be the Municipality of Hebron.
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-
P8
Name MSW Gas Generation of 1000 kWCountry PalestineOrganisation Hebron Electric Power CompanyAssumptionsExchange rate ($/LC) 0.28Discount rate 8%Installed capacity 1 MWAnnual production 3000 MWhAnnual degradation 0Net production 3000 MWhDepreciation period 15 yearOPEX in % of investment 3% % of investment
$ LCProject cost 2,250,000 8,035,714
Tariff $/MWh 110.00 392.86 LCOE $/MWh 91.56 327.01 Finance scenarios
16% equity 84% grant 16% equity 84% loan Loan interest 2.00%Loan tenor 15 Grace period 1 IRR on total investment 10% 2%IRR on equity 75% 55%Cum disc cash @ year 20 in $ 2,226,264 1,054,637 min DSCR - 1.16
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
RE-
P8Income statement
in USD 16% equity 84% grant 16% equity 84% loan
Net electricity generation (MWh) 60,000 60,000
Electricity consumed for own uses 60,000 60,000 Tariff 1
Revenue (Bill saving) 6,600,000 6,600,000 Tariff 1
Expenditure 3,600,000 3,600,000
Operating expenses 1,350,000 1,350,000 Depreciation 2,250,000 2,250,000 Operating income 3,000,000 3,000,000
Financial expenses 359,100
Total expenditure 3,600,000 3,959,100
Net income before taxes 3,000,000 2,640,900
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UN Development Account Project
UNDA PROJECT CLOSING WORKSHOP : “Renewable Energy
UNDA project conclusions and way forward”, 13-14 December 2017
ESCWA
Project Name
RE8
Financing
Interest rateLoan
duration
reimbursement period
per yearGrace period
Net incomebefore taxes
IRR project (based on total investment)Equity Soft Loan Grant
5% 95% 0% 3% - 7 to 9% 15 Years 4 per year 5 Years 2,218,135 55%
Amend 1 16% 0% 84%1.25% - 7 to
9% 15 Years 4 per year 1 Year 8,035,714 10%
Amend 2 16% 84% 0% 2% - 7 to 9% 15 Years 4 per year 1 Year 6,753,214 2%
HEPCO
Financing Interest rate
Loan duration
reimbursement period
per yearGrace period
Net incomebefore taxes
IRR project (based on total investment)Equity Soft Loan Grant
5% 95% 0% 3% - 7 to 9% 15 Years 4 per year 5 Years -1,501,576 ?
Amend 1 16% 0% 84%1.25% - 7 to
9% 15 Years 4 per year 1 Year 3,000,000 10%
Amend 2 16% 84% 0% 2% - 7 to 9% 15 Years 4 per year 1 Year 2,640,900 2%
Economic And Social Commission For Western Asia
THANK YOU FOR YOUR ATTENTION
Link to UN DA project: https://www.unescwa.org/node/94046
/ United Nations Economic Commission for Europe