PV System Beyond Adder for Private Households, Commercial Buildings and
Industries in Thailand – Realized Cases, its Economics and Prospects
June 2013
2
Content
| Annex Power company overview | From solar farms to solar rooftop systems | PV system choices for private households and small businesses| System set-up comparisons| Energy yields for solar rooftop systems | Tariff – Historical and forecasted tariffs| System sizing and cost | What are return expectations for current household owners and businessess| Needed government permits and hurdles| Final Conclusions
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Company Overview
| Annex Power spun-out of the Thai subsidiary of one of the largest renewable energy companies in the world, and has been operating independently since 2008
| The local head office is located in Bangkok, Thailand| 75 MW of projects contracted and over 50 MW of renewable energy projects constructed,
representing ~ 15% market share for EPC in the Thai solar VSPP market| More than 35% of the 100 full-time employees are experienced engineers with often multiple
engineering degrees
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Company Overview
| Annex Power is one of the leading renewableenergy company in Thailand and the SoutheastAsian region. Annex Power provides reliability,international experience and tier one equipmentto all projects. Annex Power means quality fromstart to finish.
| The Annex Power team includes experts fromevery relevant field in clean energy; engineers,technicians, biologists, financial and projectmanagers.
| Annex Power has a full time staff of 90employees, mostly engineers and technicians, alocal distribution center near Bangkok and heavyconstruction equipment to meet every projectneed.
| Together with our international and exclusivepartners, our point-of-sale outlets and our stronglocal teams, Annex Power is your one-stopcompany for renewable energy solutions inSoutheast Asia.
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Operations Overview
Solarpower
Hybrid/Wind
systems
Bioenergy
Consultancy
Projectdevelopment
On – Grid Systems Solar Power Plants Off – Grid Systems
Engineering, Procurement
and Construction
(“EPC”)Small Wind Systems Hybrid Systems
Biogas Power Plants
Wind PowerSolar Power Bio Power
Bioenergy Power Plants Solar Power Plants
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EPC Service Solutions
Plant layouts
Cost calculation
Yield analysis
Technical planning: conceptual, basic and detailed engineering
Consultancy
Commercial and technical management
Engineering Procurement Construction
PV, Wind, Biogas and Hybrid EPC Business Segment
Purchasing
Logistic services
Quality control
Consultancy
Installation
Coordination
Site supervision
Quality inspection
Commissioning
Consultancy
Technical monitoring & default analysis
Maintenance and service
Accounting
Contract controlling
Consultancy
ANNEX POWER IS AN EXPERT FROM PRE-DEVELOPMENT THROUGH CONSTRUCTION AND INTO OPERATIONS & MAINTENANCE OF RENEWABLE
PROJECTS
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O&M Service Solutions
Plant availability guaranteesFixed service ratesPreventive maintenancePlant monitoring and performance analysis24h on site plant management and controlSpare part control and stock keepingSpecial technical services
Annex Power’s local scale, technical breadth and specialization enables
them to provide premium O&M services at a lower cost than its
customers can manage independently
Technical Management Commercial Management
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Consultancy
General ConsultingDue DiligenceTechnical Consulting Environmental Issues Feasibility Studies Financial Projections Project Management Energy Audits
Annex Power enables successful development of renewable energy projects for our clients through
the following value-added consulting services:Annex Power’s Consulting services ensure that client
projects reach construction phase and are an effective entry point
from which to up-sell more substantial EPC services
Commercial and technical management
Engineering Procurement ConstructionCommercial
and technical management
ConstructionSitedevelopment Financing Engineering Procurement
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From Solar Farm to Solar Roof System
Solarta Sai Prapa PV Power Plant *
Indorama PV Power Plant ** Build by Annex Power
Carport System in the US
Commercial Rooftop System
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PV Systems for Private Households and Businesses
Pitched Roof Flat Roof
Car PortGround Mounted Custom Designs
Metal Sheet Roof
• The above systems are all project references installed by Annex Power in Thailand
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System Set-up Comparisons
PV Power Plants Small PV Systems
Installation Area Free Field Roof / Carport / Free Space
Shading Optimal shading or zero shading design Avoid shading / shading study designs
Tilt Angle Optimum design tilt and azimuth May not have the perfect tilt and azimuth
Grid Connection PEA Grid: 22kV ,115 KV 1-Phase 220V , 3-Phases 380V(No Power Transformer / MV Switchgear)
PV Modules Thin-filmCrystalline
Higher focus on Crystalline More concerns on modules efficiency
Inverter Central Inverters String Inverter with 3 phases set-up
Single Phase String Inverter 3- Phases String InverterMicro-InverterMulti-MPPT inverters may be required
Monitoring Required Optional
System Sizing and Design
Maximum power output to match PPA Unlimited load model
Restricted by maximum available area Limited energy production
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Shading Effects PV Array Voltages
PV Array Shading Effects in Parallel PV Array Shading Effects in Series
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Shading Analysis Tools
| Shading analysis is crucial in the design phase| Shading calculations are important to estimate
yields and to avoid negative long-term effects on modules
Sun Eyes Shading Analysis Tools 3-D Model for Shading Calculations by PVsyst
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String Inverters
Single Phase String Inverter 3- Phase String Inverter Micro-Inverter
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Thailand Solar Irradiation Power Study
| Published by DEDE in 2010| Monthly irradiation on 7,416
Tamboons ( Sub-districts) | +/- 3 % with Meteonorm data | Average 1795 kWh/m2/Y
Irrad
iatio
n –
kWh/
m2 /y
No. of Tamboon
Distribution of Irradiation in Thailand
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System Yield Loss for PV Rooftop Systems
Field Installation Roof Installation Design Parameters
Tilt 0% - 0 % - 5.5% 0 to 40 Degree Roof Tilt
Azimuth Optimization - 0 % - 4% -90 to 90 Degree ( South facing )
Shading Loss 0.5-2 % Depends on Area
Temperature Loss 9%-13% 12%-17% Due to less air flow and heat from roof
Inverters Efficiency Loss (During Operation)
1.5%-2.0% 2%-3% Different String Set-upsDifferent Tilt and azimuth
Transformer Loss 1.5%-2.5% 0% No Transformer
Wiring Loss 1.5% 1% Shorter Wiring
Rooftop Performance Ratios are approximately > 3% less than field installations depending on site sepcifics
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PEA Electrical Price System
Type of Usage Normal TOU (Time of Usage) Peak/Off Peak
TOU Weight average for PV
Households 3.9361* 5.2674/2.1827** 4.2617
Small Business < 30 KW
3.9361* 5.2674/2.1827** 4.2617
Medium Business >30 kW , < 1 MW
2.8095** 3.9189/2.3027** 3.3920
Large Business >1 MW
TOD / 2.7815 3.7731/2.2695*** 3.2829
Hotel / Apartment >30 kW
3.9189/2.3027** 3.3920
NGO 3.5263 3.9189/2.3027** 3.3920
Agriculture Pumping 2.7549 3.7989/2.1827 3.2720
Temporary Use 6.4369 6.4369
Price = Service Charge + kWh ( Base Price or TOU +Ft+ Adder )
* > 400 kWh , ** > 22kKV *** <22 kV , > 69KV
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Solar VSPP Electrical Sales Price (W/O) Adder
Average monthly increase over the last years; 0.66% per year
Adjust Based Price
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Ft Trends
Satang/kWh
• 3.468* % Annually increase• 1.38 Baht / kWh expected in the next 20 years
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System Size and Cost
| The costing is determined with PV roof installation
| Including BOS and installation | Study System size 1.4kWp – 43kWp | The systems cost are 104-58 Baht/Wp| The electricity cost are 78-42 Baht/KWh
Baht
System Capacity
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Small System Break Down Cost Analysis
Baht
System Size (KWp)
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Financial Models for a Tax Incentive Program
Assumptions;| New support scheme without special adder or FiT| TOU price below 22kV (Households and Small Business) | Irradiation at 1850 kWh/m2/Y | Fix Base Tariff + 3.4% increase for Ft rate| Performance Ratio 75%| IRR at 20 ,15 ,10 years| 3 different tax assumptions;
| 1- Normal cooperate tax rates (10 years depreciation, with 20% tax on profits) | 2- Normal cooperate tax rate (5 years double depreciation, 20% Tax on profits)| 3- Personal income tax rate (100% deductible on annual revenues, 30% tax on income)
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IRR – 20 Years IRR – 15 Years
Payback
Key Financial Model Results
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Key Results of the Financial Modeling
| PV rooftop systems bigger than 15kWp results in a payback within 7 years without any tax incentive scheme
| With a double depreciation tax incentive tax scheme; systems bigger than 4 kWp will result in a payback within 7 years
| With a single deducible on revenue tax incentive scheme; systems bigger than 5 kWp will result in a payback within 7 years
| A tax incentive program will increase the IRR by 5%-8%
| Off-grid systems on islands or remote areas will achieve high IRR and paybacks without any support shemes
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Required Permissions
PV System Size (kW) MEA or PEA EGAT ERC
Department of Industrial works ( Factory License
รง. 4)
Local Government
OfficeBOI
<3.7(Households)
PPA and adder approval needed -
No license needed, but ERC
need to be informed
- - -
3.7 ≤ size ≤ 1,000PPA and adder approval
needed -
No license needed, but ERC
need to be informed
License neededPermission
neededOptional
1,000 < size < 6,000PPA and adder approval
needed+ 2% levy
- License needed License neededPermission
neededOptional
6,000 ≤ size < 10,000 PPA and adder approval needed
Permission needed
+ 2% levyLicense needed License needed
Permission needed
Optional
≥ 10,000 PPA and adder approval needed
Permission needed
+ 2% levyLicense needed License needed
Permission needed
Optional
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Final Conclusions
| Technical designs and system choices are important for roof-top and off-grid systems| PV Roof systems will achieve a return of investments without any support schemes, if the
capacity of the system is big enough.| A possible TAX incentive scheme will have a direct impact on IRRs and will result in better
returns for Thai customers in the future| One main current hurdle for PV rooftop systems is the factories license requirement;
| The application process requires a lot know how, which is not available for private or small businesses
| Factories are not allowed near temples, school or in residential areas| Off-grid systems in remote areas or on islands for diesel replacements will achieve high returns
and are feasible now without any support schemes
YOUR RENEWABLE ENERGY PARTNER IN ASIA PACIFICIf you have further question, so please contact us at [email protected] or Tel: +66 (0) 2 660 6800
