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Walk the TalkWalk the TalkCase Studies of 567KW Rooftop Solar PV in ADBCase Studies of 567KW Rooftop Solar PV in ADB ss
HQ and NEDHQ and NEDs 73MW Solar Farm in Thailands 73MW Solar Farm in Thailand
Aiming ZhouAiming Zhou
Energy SpecialistEnergy Specialist
Regional and Sustainable Development DepartmentRegional and Sustainable Development Department
Bangladesh Solar Development Forum20, September
Dhaka
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ContentContent
ADBADB s Current Clean Energy Investments Current Clean Energy Investment
Examples ofExamples ofSolar Project Financing bySolar Project Financing byADBADB
ADBADB s Rooftop Solar Project in 2011s Rooftop Solar Project in 2011
Thailand 73MW Solar Project in 2010Thailand 73MW Solar Project in 2010
ConclusionsConclusions
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ADB Low-Carbon Programs and Initiatives
Clean Energy Program
Asia Solar Energy Initiative
Quantum Leap in Wind
Energy for All
Promoting Carbon Capture and Storage
Asia Climate Change and Clean Energy VentureCapital Initiative
Carbon Market Program TSF, APCF, FCF
Sustainable Transport Initiative
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ADBADBsCompositionofCEFinancingsCompositionofCEFinancing
(Cumulative
2008(Cumulative
2008
2010,
in
US$
million)2010,
in
US$
million)
Hydro Wind Solar Others
1,554 676 206 459
54% 23% 7% 16%
Total Energy-related Investment (2008-2010): $ 9.1 BillionTotal Clean Energy Investment (2008-2010): $ 4.8 Billion.
Note: Others in the breakdown of RE projects pertains to biomass/biogas, waste to energy
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1
10
100
1000
10000
100000
1000000
2 3 4 5 6 7 8 910
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
>27
MWh
US Cents per kWh
# of MWh sold at each price point
Why Solar EnergyWhy Solar EnergyIn 2010, $100 billion (approximately 5%) of global retail electrIn 2010, $100 billion (approximately 5%) of global retail electricityicitydemand could be competitively addressed with solar powerdemand could be competitively addressed with solar power
~600 GWs ($2 Trillion of Solar)~600 GWs ($2 Trillion of Solar)
201020152020
Area of solar competitiveness
Source: Jigar Shah, 2011
Solar Electricity
Price Declining
Solar Electricity
Price Declining
Conventional
Electricity PriceRising
Conventional
Electricity PriceRising
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Approaches forApproaches for
Solar Project FinancingSolar Project Financing
Bankable SolarProjects
PPA
Utility Owned
System Lease Contractual Intermediary
User Owned Others
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2011 ADB2011 ADB s 567kW Rooftop Solars 567kW Rooftop Solar
Project at HeadquatersProject at Headquaters
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1. Greening ADB Building Operations1. Greening ADB Building Operations
Energy Efficiency (chillers, lighting etc.)Energy Efficiency (chillers, lighting etc.)
Solar Power Supply to ADB Headquarter BldgSolar Power Supply to ADB Headquarter Bldg
OthersOthers
Purposes of ADBPurposes of ADB
567 kWp Rooftop Solar Project567 kWp Rooftop Solar Project
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2.2. Technology Demonstrat ionTechnology Demonstrat ion
3. Business Model, build3. Business Model, build --operateoperate--transfer w ith PPAtransfer w ith PPA
Purposes of ADBPurposes of ADB
567 kWp Rooftop Solar Project567 kWp Rooftop Solar Project (continued)(continued)
ADB
Suntech/PropmechConsortium
PPA Power
Financing (commercial financiers) Construction (567 kWp) Operation (~ 600 MWh per year) Transfer (buyout option within 15 yearsand free at year 16)
Financing (commercial financiers) Construction (567 kWp) Operation (~ 600 MWh per year)
Transfer (buyout option within 15 yearsand free at year 16)
Portion of Facility Building rooftop isleased for 15 years at $1/sq meter, totalestimated area size is 5,166 sq meter Solar power is sold to ADB at the rate
decided by the bidding
Portion of Facility Building rooftop isleased for 15 years at $1/sq meter, totalestimated area size is 5,166 sq meter Solar power is sold to ADB at the rate
decided by the bidding
Commercial FinancierCommercial Financier
Business
Financing
Loan
Repayment
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ADB Headquarters ComplexADB Headquarters Complex
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Details of Procurement ProcessDetails of Procurement Process1. Pre Bidding
Screening and clearance of legal, technical and commercial aspects
for the project within Manila Jurisdiction Internal process for project development and approval by ADB
Management
2. Bidding Process
The Bidding Process: Conception pre- qualification criteria Draft technical and legal specification document Invitation to bid to qualified bidders (July, 2010) Selection of contractor / PPA signed
2. Bidding Process
The Bidding Process: Conception pre- qualification criteria Draft technical and legal specification document Invitation to bid to qualified bidders (July, 2010) Selection of contractor / PPA signed
3. Project Development Construction (5-6 months) Trial operation and normal operation (December, 2011 February ,2012)
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Diagram of ADB Rooftop Solar SystemDiagram of ADB Rooftop Solar System
567 kWpRooftop PV
System
ADB SubstationsADB Substations
Meralco34.5KV/380Y/200V
ADB
HeadquatersCompus
InvertersInverters
600MWh/yr
SwitchSwitch BusbarBusbar
18,300 MWh/ yr
The solar system supplies about 3%
of the electricity consumption inADBs complex
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ADB Rooftop Solar Project Visual ImpactADB Rooftop Solar Project Visual Impact
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HighlightsHighlights
No upfront cost to ADBNo upfront cost to ADBThe business model uses a PPA between the Suntech/PropmechThe business model uses a PPA between the Suntech/Propmech
Consortium (Project Implementer) and ADB (End User), wherebyConsortium (Project Implementer) and ADB (End User), whereby
the project implementers bear the investment cost and O&M coststhe project implementers bear the investment cost and O&M costs
and user purchase the electricity at bid price.and user purchase the electricity at bid price.
ADBADB s credit worthiness helps the consortiums credit worthiness helps the consortium
secure nonsecure non--recourse loan financingrecourse loan financing
PPA will help the project implementers to secure financing fromPPA will help the project implementers to secure financing fromlocal commercial financiers. With a 15local commercial financiers. With a 15--year PPA from ADB, thisyear PPA from ADB, this
project becomes a bankable projectproject becomes a bankable project
Challenges to replicationChallenges to replication
Challenges could arise in countries that have regulated andChallenges could arise in countries that have regulated and
partially deregulated electricity markets. This model needspartially deregulated electricity markets. This model needs
permission for third partypermission for third party--owned systems to sell to end usersowned systems to sell to end users
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2010 ADB Funded Project in2010 ADB Funded Project in
Thailand:NED Solar Power ProjectThailand:NED Solar Power Project
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Project FeaturesProject Features 73 megawatt (gross) in Lopburi Province, Central73 megawatt (gross) in Lopburi Province, Central
Thailand.Thailand.
ThinThin--filmfilm
ThailandThailands first large, utilitys first large, utility--scale solar generating facility.scale solar generating facility.
55--year automatically renewable PPA between withyear automatically renewable PPA between withElectricity Generating Authority of Thailand (EGAT)Electricity Generating Authority of Thailand (EGAT)under the Small Power Producers Program.under the Small Power Producers Program.
MultiMulti--Sponsors: CLP Group, Mitsubishi, and theSponsors: CLP Group, Mitsubishi, and the
Electricity Generating Public Company.Electricity Generating Public Company.
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Contractual StructureContractual Structure
17
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HighlightsHighlights ADB loanADB loan
Thai BahtThai Baht--denominated loan for $63 million equivalent (25% of projectdenominated loan for $63 million equivalent (25% of project
cost)cost)
18 years tenor, back18 years tenor, back--ended equity injection, nonended equity injection, non--recourse projectrecourse projectfinancingfinancing
Attractive fixed rate in Thai Baht covering all disbursements aAttractive fixed rate in Thai Baht covering all disbursements andnd
lockedlocked--in over the entire 18 years tenorin over the entire 18 years tenor
ADB grantADB grant
$2 million grant from ADB$2 million grant from ADBs Clean Energy Financing Partnership Facilitys Clean Energy Financing Partnership Facility
to cover any contingency costs arising from the use of highly coto cover any contingency costs arising from the use of highly complex,mplex,
innovative thin film PV technology on a large scale.innovative thin film PV technology on a large scale.
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ADBCleanEnergyFinancingtoward $2BillionADBCleanEnergyFinancingtoward $2Billion
by
2013by2013
Source: ADB Database
Go Solar
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Thank You !Thank You !
Contact:[email protected]:[email protected]
Moreinformation:Moreinformation:www.adb.org/cleanwww.adb.org/cleanenergyenergy