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

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16

20

17

20

18

Price for small rooftop systems (Ger, €/kWp)

Source: Frauenhofer, 2019

- 70 %

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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

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Today, businesses around the world benefit from these advantages

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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!

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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

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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

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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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• 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

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• 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?

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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

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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

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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