Safe project conditions for renewable energy – a challenge for a clean future
description
Transcript of Safe project conditions for renewable energy – a challenge for a clean future
![Page 1: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/1.jpg)
Safe project conditions for renewable energy – a challenge for a clean future
Peter Klessascheck, Head of Project Management
Vilnius, 24 November 2010
![Page 2: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/2.jpg)
2German engineered wind turbines
Index
o PowerWind GmbH
o Risks in project financing
o Impact on Lithuanian Renewable Energy Law
![Page 3: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/3.jpg)
3German engineered wind turbines
PowerWind GmbH at a glance
o Founded in 2007
o Headquarters: Hamburg (Germany)
o Production facility: Bremerhaven (Germany)
o Products:
o PowerWind 56 (900 kW)
o PowerWind 90/100 (2500 kW)
o 141 employees
o Fully owned by Warburg Pincus, an international growth investor
Source: BFB
![Page 4: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/4.jpg)
4German engineered wind turbines
33 WECs installed, 8 under construction, 32 more sold as of 22nd November
USA
Poland AzerbaijanGermany
Italy RomaniaBulgaria
![Page 5: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/5.jpg)
5German engineered wind turbines
Risks in project financing
![Page 6: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/6.jpg)
6German engineered wind turbines
Wind energy converters are usually owned by a Special Purpose Vehicle. This SPV has to pay all investment costs.
Investment costs
![Page 7: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/7.jpg)
7German engineered wind turbines
Typical investment costs for a wind energy project
WECo Blade markings/aviation lights
(according to building permit)
o Shadow flicker modules(according to building permit)
o Transport(costs depending on distance and accessibility of site)
o Crane(costs depending on distance to site and local availability)
o Transformer/switchgear(depending on project characteristics)
Infrastructureo Roads and crane areas
o Soil investigations
o Foundations
o Grid connection! extreme high costs in Lithuania due to tender system, presently there is no other regulation
o Compensation payments for impacts on environment
![Page 8: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/8.jpg)
8German engineered wind turbines
Dividend distribution and loan paid back to share holders
Investment costs
Investors
Equity moneyIncome from energy sold
One part of the SPV’s capital is invested by share holders. This loan is paid back later by the SPV’s profits.The SPV’s only financial income is generated by the WEC.
![Page 9: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/9.jpg)
9German engineered wind turbines
The main part of the SPV’s capital is financed by a bank. The credit is paid back later by the SPV’s income.
Debts and amortization
Dividend distribution and loan paid back to share holders
Financing Bank
Investment costs
Financing of investment costs, financed capital
Investors
Equity moneyIncome from energy sold
![Page 10: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/10.jpg)
10German engineered wind turbines
In a rating procedure, the financing bank evaluates the probability that the financed capital can‘t be paid back by the SPV as agreed in the credit contract.
In general, the bank analyses the main risks caused by commercial, technical and legal impacts.
![Page 11: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/11.jpg)
11German engineered wind turbines
Typical topics analyzed in the rating procedure
o Reports, studies (e.g. wind at site) and expertise
o The technology used WECs with type certificates are preferred
o Permits for installation and operation of the WEC according to the planned conditions
o Legal aspects in contract and permits
o Reliability of the equity investors
o Estimation of future energy consumption and related prices
o Business plan Due to the unstable Lithuanian Law on Renewable Energy, the price per kWh and the law’s period of validity is uncertain
![Page 12: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/12.jpg)
12German engineered wind turbines
Debts and amortization
Financing Bank
Investment costs
Financing of investment costs, financed capital
Investors
Equity moneyIncome from energy sold
Beside the debts and amortization the SPV has to pay the monthly operation costs.
Operating costs Dividend distribution and loan paid back to share holders
![Page 13: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/13.jpg)
13German engineered wind turbines
Typical operating costs for a WEC
Land lease payments
4-8% of annual revenues
Land lease payments
4-8% of annual revenues
Technical & commercial
management
1,5-2,5% of annual revenues
Technical & commercial
management
1,5-2,5% of annual revenues
Service
13% of annual revenues
(Full service contract = 1.1 Cent/kWh)
Service
13% of annual revenues
(Full service contract = 1.1 Cent/kWh)
ReservesReserves RepairsRepairs InsurancesInsurances
![Page 14: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/14.jpg)
14German engineered wind turbines
The only income a SPV can generate comes from sales of the energy produced.
This source is essential for paying off the financed capital, the operation costs and finally a dividend to the investors!
Wirtschaftlichkeitsanalyse
Energy producedFinancial capital
+Operating costs
+Dividend
Without a reliable Lithuanian Law on Renewable Energy, neither banks nor investors will invest in the clean technology to the benefit for all of us.
![Page 15: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/15.jpg)
15German engineered wind turbines
Impact on Lithuanian Renewable Energy Law
Germany Lithuania Consequence
for Lithuanian projects
Present rate of equity
15-20% 40% Fewer potential investors
Small projects
Access to grid Guaranteed by Renewable Energy Law Tender system
High risk and high demand on working capital already
in planning phase Avoid tender system
Period of guaranteed feed-
in tariff
Guaranteed up to20 years
(depending on potential of production site)
No regulation any more (but 5 years are in-sufficient in order to receive bank financing)
High risk for bank no financing or very high
interest rates Price should be fixed
for at least 13 years
![Page 16: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/16.jpg)
16German engineered wind turbines
Thank you for your attention
PowerWind GmbH
Kehrwieder 820457 Hamburg - Germany
www.powerwind.de
T + 49 (0)40 741067 - 0F + 49 (0)40 741067 - 599
Insert Photo
![Page 17: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/17.jpg)
Back up
![Page 18: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/18.jpg)
18German engineered wind turbines
Wirtschaftliche Bedeutung: Arbeitsplätze Stand: 9/2005
![Page 19: Safe project conditions for renewable energy – a challenge for a clean future](https://reader033.fdocuments.in/reader033/viewer/2022050805/5681587e550346895dc5e0d2/html5/thumbnails/19.jpg)
19German engineered wind turbines
With its full range of features, the PowerWind 56 perfectly matches the technical challenges of the site in Azerbaijan
o Highest energy yield in wind class II
o Full-scale converter ensures that the system is suitable even for weaker grids
o Three active cooling systems enable the turbine to be installed and operated also in regions with extreme climatic conditions
o Compact design allows inexpensive transportation and installation even in locations with weak infrastructure