PECO-PEDC Electric Power Purchase Agreement EXPOSITORY PRESENTATION 9 September 2010
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Transcript of PECO-PEDC Electric Power Purchase Agreement EXPOSITORY PRESENTATION 9 September 2010
PECO-PEDC PECO-PEDC Electric Power Purchase Electric Power Purchase
AgreementAgreement
EXPOSITORY PRESENTATIONEXPOSITORY PRESENTATION9 September 20109 September 2010
Panay Region Power Situation (newspaper clippings)
EPC PROJECT: 2 x 82MW CFB POWER PLANT EXPANSION PROJECT
Brgy. Ingore, La Paz, Iloilo City
GROUND BREAKING : September 2008DATE STARTED : February 2009DATE OF COMPLETION : December 30, 2010PROJECT COST : PhP19,908,518,700.00BOILER MANUFACTURER : FORMOSA HEAVY INDUSTRIES, INC.
(Under License from Foster-Wheeler)TURBINE MANUFACTURER : KAWASAKI HEAVY INDUSTRIESGENERATOR MANUFACTURER: TOSHIBA ELECTRIC
3
4
2 X 82MW CFB POWER PLANT EXPANSION PROJECTBrgy. Ingore, La Paz, Iloilo City
TARGET COMPLETION DATES:
UNIT 1 COLD TEST - August 2010INITIAL IGNITION - September 4, 2010SYNCHRONIZATION - September 30, 2010
UNIT 2COLD TEST - November 2010INITIAL IGNITION - Mid of November 2010SYNCHRONIZATION - December 30, 2010
Visayas Power SituationPower Demographics – CNP 2010
Source: Source: Planning & Development Division, TRANSCO, September 2007Planning & Development Division, TRANSCO, September 2007
2010 SUPPLY-DEMAND SCENARIO
Luzon
Leyte Geothermal
Cap. 400
BoholCapacity 15Demand 42Reserve 44
Line Capacity212 MW
Line Capacity80 MW
Cebu
Baseload 442
Peak 190
TOTAL DEMAND 632
Less
Inland (307)
Import (270)
SHORTAGE (55)
Plus RESERVE (100)
TOTAL SHORTAGE (155)
Line Capacity360 MW
Negros
Baseload 178
Peak 76
TOTAL DEMAND 254
Less
Inland (185)
Import -
SHORTAGE (69)
Plus RESERVE (60)
TOTAL SHORTAGE (129)
Panay
Baseload 209
Peak 90
TOTAL DEMAND 299
Less
Inland (202)
Import (90)
SHORTAGE (7)
Plus RESERVE (70)
TOTAL SHORTAGE (77)
Consolidated CNP Grid Supply-Demand Consolidated CNP Grid Supply-Demand 2009-20202009-2020(As of end October 2009)(As of end October 2009)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Embedded Capacity 644 644 644 644 644 644 644 644 644 644 644 644Import from Leyte 368 368 368 368 368 368 368 368 368 368 368 368Total Available Capacity (SUPPLY) 1012 1012 1012 1012 1012 1012 1012 1012 1012 1012 1012 1012
Peak Demand 1033 1085 1139 1196 1256 1318 1384 1454 1526 1603 1683 1767Reserve (23.4%) 242 254 266 280 294 309 324 340 357 375 394 413Total Needed Capacity (DEMAND) 1275 1338 1405 1476 1549 1627 1708 1794 1883 1978 2076 2180
Surplus / (Deficit) (263) (326) (393) (464) (537) (615) (696) (782) (871) (966) (1064) (1168)Unfilled Demand (21) (73) (127) (184) (244) (306) (372) (442) (514) (591) (671) (755)Unfilled Reserve (242) (254) (266) (280) (294) (309) (324) (340) (357) (375) (394) (413)
Total Added Capacity from New Plants 0 219 565 565 565 565 565 565 565 565 565 565
Total Available Capacity with New Plants 1012 1231 1577 1577 1577 1577 1577 1577 1577 1577 1577 1577
SURPLUS/DEFICIT (Adjusted Computation)
(263) (107) 172 101 28 (50) (131) (217) (306) (401) (499) (603)
Unfilled Demand (21) 0 0 0 0 0 0 0 0 (26) (106) (190)Available / (Unfilled) Reserve (242) (107) 172 101 28 (50) (131) (217) (306) (375) (394) (413)
Note:Note: Additional Additional 219MW219MW will come in by Year 2010 {146MW from CEDC Units 1 & 2 and 73MW from PEDC Unit-1}will come in by Year 2010 {146MW from CEDC Units 1 & 2 and 73MW from PEDC Unit-1} Another Another 565MW565MW will come in by Year 2011 {219MW from 2010, plus 200MW from KEPCO, 73MW from CEDC Unit-3, and 73MW from PEDC Unit-2} will come in by Year 2011 {219MW from 2010, plus 200MW from KEPCO, 73MW from CEDC Unit-3, and 73MW from PEDC Unit-2}
Generating Company
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020PANAY GRID (Bunker Fired peaking plants)
PB 103 (Estancia) 24 18 0 0 0 0 0 0 0 0 0 0 PB 102 (Obrero) 24 18 0 0 0 0 0 0 0 0 0 0 PB 101 21 18 0 0 0 0 0 0 0 0 0 0 PPC1 & PPC2 83 83 83 83 83 83 83 83 83 83 83 83 PDPP1 25 18 18 18 18 18 18 18 18 18 18 18 PDPP3 (Pinamucan Plant) 10 52 52 52 52 52 52 52 52 52 52 52 Ennervantage 9 4 9 9 9 9 9 9 9 9 9 9 TransOil Power Dev't. Corp. 3 3 3 3 3 3 3 3 3 3 3 3 PPC Nabas/New Washington 14 14 14 14 14 14 14 14 14 14 14 14 Total Panay Embedded Capacity 213 228 179 179 179 179 179 179 179 179 179 179 Negros-Panay (Imported power) 80 60 45 45 41 41 41 38 38 38 38 38
Panay Available Supply 293 288 224 224 220 220 220 217 217 217 217 217
Panay Maximum/Peak Demand 226 234 246 258 271 285 299 314 330 346 364 382Negros requirement (export from Panay) 0 0 73 73 73 73 73 73 73 73 73 73Required Reserve (23.4%) 53 55 58 60 63 67 70 73 77 81 85 89
Total Needed Capacity 279 289 376 391 407 424 442 460 479 500 521 544
Gross Reserve/(Deficit ) 14 (1) (152) (167) (187) (204) (222) (243) (262) (283) (304) (327)Filled/Unfilled Demand
67 54 -22 -34 -51 -65 -79 -97 -113 -129 -147 -165Panay Grid (Coal-fired baseload Plant)
Panay Energy Development Corp. 72 144 144 144 144 144 144 144 144 144 144
Total Available Capacity with New Plants 293 360 368 368 364 364 364 361 361 361 361 361
SURPLUS/DEFICIT (Adjusted Computation) 14 71 (8) (23) (43) (60) (78) (99) (118) (139) (160) (183)
Note :1. NPC Power Barges assumed to be privatized when TSC of EC end on December 20102. Except for PEDC all plants in Panay are expensive diesel fired power plants which should be dispatched for peaking requirments only.3. Negros Power Supply Aggregation Group requires 90MW of intermediary and peaking requirments from Panay.
MW
PANAY SUPPLY DEMAND SITUATION
The Panay Expansion Project, to be undertaken by the Project Company, Panay Energy Development Corporation, offers a partial solution to the power crisis in the Island of Panay.
Project Rationale
PECO-PEDC EPPATariff Computation – General Parameters
WACC 14.50%Forex Php/ USD 46.00 Contract Years years 25
Gross Capacity kW 164,000 Auxiliary Load 10.37%
kW 17,000
Net Capacity = Gross Capacity - Auxiliary LoadkW 147,000
Capacity Factor 80%
Days per year 365 Hours per day 24 Hour per year 8,760
Generation per year = Net Capacity x Capacity Factor x Hours per yrkWh 1,030,176,000
PECO-PEDC EPPATariff Computation
Electricity Fees =
(Capital Recovery + Peso O&M Charge + Dollar O&M Charge) + Fuel Cost
PECO-PEDC EPPACapital Recovery Fee
Using the concept of the Time Value of Money (Annuities)
tn
tn i
PMTPVA
1 1
1
Where:PVAn = Present value
PMT = value of the annuityn = periodi = interest rate
PECO-PEDC EPPACapital Recovery Fee
Total Project Cost PhP 19,908,518,700.00Less:
Value Added Tax 1,473,177,600Duties 122,764,800Transmission Line and Facilities
428,415,552
Net Amount to be Recovered 17,884,160,748
PECO-PEDC EPPACapital Recovery Fee
WhereTotal Project Cost Php 17,884,160,748 Contract Period years 25ERC Approved Cost of Capital 14.50%
Computing the Capital Recovery Fee
PV = Total Project Cost (17,884,160,748) FV 0n = Contract period in years 25 i = Cost of Capital 14.50%PMT = Annuity payment Php p.a. 2,684,124,580
Generation per yearPhp per kWh 2.6055
PECO-PEDC EPPAPeso O&M Fee
Php-Based Cost (Php)
Total Peso-based Costs Php 438,383,118
÷ Generation per year
At 100% Load Factor 0.4255
PECO-PEDC EPPADollar O&M Fee
USD-Based Costs
Total USD-Based Costs USD 8,549,587
÷ Generation per yearAt 100% Load Factor 0.0083
x Forex0.3820
PECO-PEDC EPPAFuel Cost Computation
Fuel Cost = Current Fuel Cost + Transport Cost x Consumption Rate x Forex 1000
Current Fuel Cost = Base Coal Price x Current Newcastle Index Base Newcastle Index
Base Coal Price = US$ 53.22/MTCurrent New Castle Index = Preceding Quarter’s Average Coal Price as per the
Global Coal New Castle Physical TradingBase Newcastle Index = US$ 63.44/MT
Consumption Rate = Actual Consumption Rate or 0.7kg/kWh escalated at 1.5% per year, whichever is lower
PEDC RATE COMPUTATIONPECO Tariff at Different Load Factors
TARIFF SUMMARY
Php-based costs Php per kWh100% Load
Factor75% Load
FactorCapital Recovery 2.6055 2.6055 3.4740 O&M 0.4254 0.4254 0.5671
USD-based costs USD per kWh0.0082 0.4018 0.5341
Total Base Tariff 3.4327 4.5752
Fuel 1.7597 1.7597
Total Cost 5.1924 6.3349
Php Equivalent
End of Presentation
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