Post on 31-May-2020
Facilitator:
Energy solutions – made in Germany
Project Development Programme (PDP)
Reduce your energy costs
24th Sept 2019
Practitioners’ Forum on Energy Efficiency and
Renewable Energy
Facilitator
Who is GIZ and PDP?
GIZ is a non-profit technical service provider in international
cooperation for sustainable development and education
• Active in 120 countries, 20,000 employees
• Mainly funded by German Ministries
• In Kenya since 1975
The Project Development Programme (PDP) is funded by the
German Federal Ministry for Economic Affairs and Energy
and supports energy solutions in 16 countries
• Business development
• Market development
• Project development Map of current PDP focus countries
Facilitator
Solar power is increasingly the preferred choice of power supply for
businesses around the world
Solar is not a new technology!Solar energy drastically reduces
CO2 emissions!
Learn whether solar power can also help your business to save energy costs and reduce CO2 emissions
0
100
200
300
400
500
600
Global installed solar capacity (GW)
+3000 %
Source: Statista, 2019
1001840
469
48
489
0
200
400
600
800
1000
1200
Coal Diesel Gas Solar Grid(Ger)
gCo2 per kWh produced
Source: IPCC, 2014; Umweltbundesamt, 2018
Cost reductions have made solar a
cheaper alternative!
0
1000
2000
3000
4000
5000
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
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20
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20
18
Price for small rooftop systems (Ger, €/kWp)
Source: Frauenhofer, 2019
- 70 %
Facilitator
Rooftop solar offers you several advantages over grid tied supply
Lower energy costs
Energy availability, even when main
supply fails
Reduce CO2 emissions
Stable, predictable costs (hedge
future grid price increases)
Adhere to corporate social responsibility
(CSR) standards
Graph: Solar cost advantages for exemplary client in Vietnam
Lock in your power prices for 20+ years
Facilitator
Facilitator
Today, businesses around the world benefit from these advantages
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Facilitator
What is the ideal system size for my factory?
What fits on my roof?
What should the price be?
How to tender?
What is the payback time/IRR?
How to compare offers?
Who are reliable contractors?
What are the local regulations?
Which business model suits my needs?
Businesses face many challenges when choosing the right system &
supplier
?
We provide you with answers to these questions at no costs!
Facilitator
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Regulatory considerations have a great impact on the right system design
Grid Tied System Embedded Generation
Main characteristics
• Power not consumed by factory is fed back to grid
• Factory is compensated for power fed back to grid (e.g.
Feed in Tariff or Net Metering)
• All solar power is consumed directly by factory
• No solar power is fed back to the grid
• Solar system directly connected to distribution grid
Key advantages
• Excess power is not wasted and will be compensated for • Typically no lengthy approval process with grid operator
• In many countries feeding back to grid not possible
System design
• System designed for total power consumption; limiting
factor typically space for solar installation or budget • System designed according to actual load profile
(consumption pattern, daily/weekly differences)
• Need for detailed and optimized system design
Facilitator
Facilitator
Power Purchase Agreement (PPA/Leasing)
• Investment in solar assets by 3rd party
• Contract duration: 15-25 years
• Payment components: O&M cost, Management cost,
Financing cost, 3rd party margin, (solar system)
• In “PPA/Lease to Own” contract client can buy system after a
number of years
Pays for
construction
& system
Solar energy
Construction
+(and
maintenance)
Purchase (or “Turnkey” Model)
• Factory owner pays investment upfront and owns the solar
assets
• Contract duration: until project completed +- 2 years
guarantee
• Payment components: Solar system + Engineering,
Procurement, Construction
Owns system
We advise you which contract type works best for your project goals
Pays for
delivered
energy
Solar energy
• Construction,
operation and
maintenance
• Owns system
Business model Relationships between parties Characteristics
Facilitator
Facilitator
The choice of components and contractors has a great impact on long
term system viability
Burnt through solar panel due to installation
error and bad cabling
Source: LFL Consulting Engineers
Solar installation blown away by
wind due to faulty mounting system
& no ballast
Source: renewableenergyworld.com
$- $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00
Wrong/Absent Cable connection
Broken/Burnt Connectors
Wrong installation
Fan Failure & Overheating
Soiling
Improper Installation
Damaged Cable
Loss/year for a 500 kWp system ($ US)
Also small/overlooked components can have a large impact on costs
Source: solarbankability.org
Saving on upfront investment costs may become costly over
the 25 year lifetime of a system!
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Facilitator
• Analysis of current and
future power needs
• Assessment of current
power costs
• Assessment of site
suitability
Is solar right for you?
We help you assess whether renewable energy is the right choice for you at no cost for our services
PDP service portfolio
Assessment of
energy needs
We accompany you along all steps of solar project development
Finding the best system for your business and ensuring successful project implementation
• System type
• Optimum system size
• Space requirements
What system is best for
you?
Technical
optimization
• Business case analysis
• Cash flow model
• Evaluation of investment
options
How big is your
economic advantage?
Investment models
• Provision of technical
specifications for
components
• Requirements for EPC
• Access to finance
• Finding suitable partners
How to implement?
Finding suitable
partners
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Your main input is data provision, which we handle 100% confidentially
Estimate Data collection System design Business case Supplier choice
• Detailed data
collection to learn
about your load
profile and
daily/weekly/mont
hly variation
• Using simulation
software, we find
the system that
minimizes your
power costs
• Evaluation of
Business Case
(IRR, Payback
Period)
• CAPEX
requirements
• Business models
• Preparation of
tender documents
• List of qualified
suppliers
• Access to finance
(if needed)
• Estimate whether
RE systems
makes sense for
your business
• Regulatory
considerations
Project step
Serviceoffered
Needed from you
• One year power
bills
• Data on roof,
seasonality of
demand, business
hours, etc.
• Access to site
• Load
measurements (if
available)
• Focal person
available for
questions
• Information
regarding budget
limitations,
Payback
expectations, etc.
• Investment
decision by board
of directors
Facilitator
• Independent
advisory
• Decade
experience
• Quality
networks
• Free service
We are not a company: free, neutral and transparent
advisory to find the energy system that is best for you
More than 10 years project development experience
in developing countries and emerging economies
Access to qualified component suppliers, engineering
companies and contractors that deliver projects to the full
satisfaction of their clients
Our services come at no cost for you, we do ask for your time
and commitment
Why work with us?
Facilitator
Our Reference Projects
13
Copperbelt Energy Corporation,
Zambia – 1 MWp
Viet Uc Seafood, Vietnam
– 22 kWp
Swissport Kenya Limited,
Kenya – 110 kWp
Emergent cold, Vietnam
– 308 kWp
Star Aire, Thailand – 1 MWp Travessia Lodge,
Mozambique – 10 kWp
Our advise has led to many happy renewable energy users worldwide
Facilitator
Within typically 8-12 months, we can guide you to successful project
implementation and energy cost savings
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Estimate
Site visit and data collection
System design
Business case evaluation
Board decision Go/No Go
Offers and supplier choice
Construction & commissioning
Depending on client
Depending on project
Facilitator
We look forward to our co-operation!
Maryanne Maina – Project Manager
Edwin Okinyi – Advisor – Project & Business
Development
maryanne.maina@giz.deedwin.okinyi@giz.deTel: +254 722 293 864
Westcom Point 5th Floor, Block B Mahiga Mairu Road,
P.O. Box 41607-00100 Nairobi, Kenya
Project Development Programme (PDP)
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ)
GmbH