Seite 1 Thomas Mitschke, GIZ DKTI programme21.10.2015 Implemented by: Local subsidies / RDA Zlatibor...

Seite 1Thomas Mitschke, GIZ DKTI programme21.10.2015

Implemented by:

Local subsidies / RDA Zlatibor / Center for Development Leskovac

DKTI - Development of a Sustainable Bioenergy Market in Serbia

Small Scale Slurry Biogas Plants for medium-sized farms in Serbia as an additional income source

Seite 2Thomas Mitschke, GIZ DKTI programme

Content

1.) About GIZ DKTI

2.) Agrobiomass potential in Serbia

3.) Economic Framework conditions

4.) Base-Case Biogas Manure Plants

5.) Financing programmes

6.) Legal framework

21.10.2015


Facts about the GIZ DKTI programme

Implemented by :

Objective: To strengthen capacities and create an enabling environment for sustainable use of bioenergy in Serbia

Funded by: German Federal Ministry for Economic Cooperation and Development (BMZ) under the German Climate Technology Initiative

(DKTI)

Duration: March 2013 – December 2017

Political partners: Ministry of Agriculture and Environmental Protection &

Ministry of Mining and Energy

21.10.2015


Eff. firewood use in HH

Policy advice Project development

Biomass supply

KfW: Advise to investments in district heating companies.

GIZ: Support to the creation of a sustainable supply with bio-resources

Structure of the programme:

GIZ: Support to harmonization of laws and regulations to EU standards

Support to policy definition and strategy implementation

GIZ:Support to a promotion of efficient stoves and ovens / firewood drying

Advise to implement efficiency- and emission standards

GIZ:Advise to the implementation of cost efficient and innovative bioenergy projects

Technology and knowlege transfer

Cross-cutting theme: Sustainability

BioRES

GIZ:Support to the creation of regional Biomass Trade and Logistic centres.

Support local supply chains for biomass.

21.10.2015


Objective: Innovative bioenergy projects are implemented

Activities:

Identification of projects and potential investors for bioenergy heating systems in public buildings, biogas facilities, facilities for generation of industrial process heat

Consultancy for plant design and project concepts, elaboration of bankable (pre-) feasibility studies, project documentation, etc.

Support/Intermediation of financial opportunities and investment subsidies

Logistical concepts for biomass

Technical support for permit application and support to increase the efficiency of processes related to procurement procedure, permits and licensing agreements for bioenergy projects

Best-practice documentation and capacity building

Dialogue-platform for Serbian and international companies and institutional stakeholders to exchange project ideas, information and experiences

Project development

Implemented by :

21.10.2015


The concept of biogas production with agro biomass

Feed-In-Tariffs?

Heat prices?

Biomass prices?

17.10.2015


Biogas potential from manure in Serbia

Velvet Farm plant, Curug, Serbia - Foto: GIZ 2014

Type of Biomass

Theoretical potential

in PJ in Serbia

Electrical efficiency in %

Potential electrical energy in GWh/a

Potential electrical capacity in MW

Manure (cattle, pig and poultry)e

3.4 34 322.2 45

Source: DBFZ Study 2015

Solid cattle manure, Serbia - Foto: GIZ 2014

Liquid cattle manure, Serbia - Foto: GIZ 2014 Liquid pig manure, Serbia - Foto: GIZ 2014

21.10.2015


Type of Electrical Generation Feed-inTariff

Biomass power plant up to 1 MWel 13,26 €Ct./kWh

Biomass power plant 1 - 10 MWel 13,82-0,56 x Pel €Ct./kWh

Biomass power plant 10 MWel 8,22 €Ct/kWh

Biogas power plant up to 0.2 MWel 15,66 €Ct./kWh

Biogas power plant 0.2 – 1 MWel 16,498-4,188 x Pel €Ct./kWh

Biogas power plant over 1 MWel 12,31 €Ct/kWh

Plant fired by biogas from animal origin waste 12,31 €Ct./kWh

Feed-in Tariffs for Biomass and Biogas in Serbia (based on 2013)

Source: DECREE ON INCENTIVE MEASURES FOR PRIVILEGED POWER PRODUCERS Pursuant to the Article 59, paragraph 6 of the Energy Law (“RS Official Gazette”, No. 57/11, 80/11 – corrigendum, 93/12 and 124/12)

Anual increasing rate = inflation rate of EURO zone Duration of power purchase agreement (PPA)= 12 years

21.10.2015


Type of Electrical Generation Feed-inTariff

Biomass power plant up to 1 MWel 13,26 €Ct./kWh

Biomass power plant 1 - 10 MWel 13,82-0,56 x Pel €Ct./kWh

Biomass power plant 10 MWel 8,22 €Ct/kWh

Biogas power plant up to 2 MWel 18,333 – 1,111 x Pel €Ct./kWh

Biogas power plant 2 - 5 MWel 16,852 – 0,370 x Pel €Ct./kWh

Biogas power plant over 5 MWel 15 €Ct/kWh

Feed-in Tariffs for Biomass and Biogas in Serbia (based on proposal for 2016)

Source: http://www.mre.gov.rs/doc/javne%20rasprave/28.09/Objedinjeno%20Uredba%20o%20podsticajnim%20merama%202015%20098%2014a.pdf

Annual increasing rate = inflation rate of EURO zone Corn Silage input = max. 40 % of overall dry matter content Duration of power purchase agreement (PPA)= 12 years

21.10.2015

http://www.mre.gov.rs/doc/javne%20rasprave/28.09/Objedinjeno%20Uredba%20o%20podsticajnim%20merama%202015%20098%2014a.pdf

http://www.mre.gov.rs/doc/javne%20rasprave/28.09/Objedinjeno%20Uredba%20o%20podsticajnim%20merama%202015%20098%2014a.pdf


Fuel prices for heating in Serbia

Current fuel prices for heating in Serbia without VAT Source: GIZ study and calculation

Prices can differ depending on location, quality and quantity

FUELS

Agro Pellets 3.9 kWh/kg 100 €/t 26 €/MWh 30.2 €/MWhBrown coal 4.5 kWh/kg 100 €/t 22 €/MWh 29.6 €/MWhElectricity 1.0 kWh/kWh 60 €/MWhel 60 €/MWh 70.6 €/MWhLight Oil 12.6 kWh/kg 1.05 €/l 98 €/MWh 115.3 €/MWhLPG 12.9 kWh/kg 1.00 €/kg 78 €/MWh 86.3 €/MWhHeavy Fuel Oil (Mazut) 11.2 kWh/kg 550 €/t 49 €/MWh 61.3 €/MWhNatural gas 10.0 kWh/m³ 0.41 €/m³ 41 €/MWh 43.2 €/MWhWood Pellets 4.7 kWh/kg 160 €/t 34 €/MWh 37.8 €/MWhWoodchips (moisture 35 %) 3.1 kWh/Kg 55 €/t 18 €/MWh 20.9 €/MWhStraw in Bales 3.9 kWh/kg 45 €/t 12 €/MWh 14.4 €/MWhFirewood (moisture 45%) 2.5 kWh/kg 60 €/t 24 €/MWh 36.9 €/MWh

80%65%

Heat Values Price per Unit (net) Calorific Price

85%90%80%95%90%

Boiler Efficiency

Heat Price

85%75%85%

85%

21.10.2015


Project proposal medium-sized farm50 kWel Biogas plant in Serbia

Initial values:Following scenario are evaluated:

1. Digestion of available liquid pig manure for electricity generation of 50 kW el2. Digestion of available liquid and solid cattle manure for electricity generation of 50

kW el

100 % of electricity generated will be sold to the grid under current feed-in-tariffs, 30 % of heat generated will be used for internal heating purposes (30 €/MWh -> comparable to current coal price)

Institute for Animal Husbandry, Serbia - Foto: GIZ 2015

21.10.2015


Project Proposal 50 kWel Biogas plant in Serbia: Manure input– required quantity and quality

Pig farm of around 4.000 animal units (fatteners) or cattle farm around 500 animal units can provide needed amount for the proposed plant size

Analysis of organic dry matter content and real quantity values necessary for each individual farm and project

Cattle Farm in Serbia, Foto: GIZ 2015

Substrates DMS oDMSt/a m³/d % FM % DMS % m³/year l/kg oDMS m³/year

Liquid cattle manure 9,445 26 7.0% 75% 55% 95,458.15 350.0 173,560Solid cattle manure 730 2 18.0% 80% 60% 25,229 400.0 42,048

total 10,175 28 120,687 215,608

Production of CH4Fresh MaterialBiogas production of substrates

Production of biogas

Substrates DMS oDMSt/a m³/d % FM % DMS % m³/year l/kg oDMS m³/year

Liquid Pork manure 31,928 87 2.0% 75% 60% 120,687 420.0 201,145total 31,928 87 120,687 201,145



orSubstrates DMS oDMS

t/a m³/d % FM % DMS % m³/year l/kg oDMS m³/yearLiquid Pork manure 9,122 25 7.0% 75% 60% 120,687 420.0 201,145

total 9,122 25 120,687 201,145



or

Different farm structures:design, feeding, age and animal type

21.10.2015


Output 50 kWel Biogas plant

Production of CH4 120,687 m³/aCaloric Value CH4 9.968 kWh/m³Losses 5.0%Energy Potential 1,142,857 kWh/aEnergy Potential Capacity 143 kWEnergetic UseEnergy potential 1,142,857 kWh/a 0 kWh/aCaloric Capacity 143 kW 0 kWElectrical Capacity 50 kW 0 kWElectrical Effi ciency 35% 0%Thermal Eficiency 40% 0%Thermal Capacity 57 kW 0 kWOverall capacity 143 kW 0 kWFull operation time 8000 hours/a 0 hours/aElectricity Generation 400,000 kWh/a 0 kWh/aHeat Generation 457,143 kWh/a 0 kWh/aEnergetic Demand 1,142,857 kWh/a 1,142,857 kWh/a

Calorific Value Natural Gas 8.5 kWh/m³Sustitution of Natural Gas 134,454 m³ / year

CHP Steam Production (24/7)

Energy Use

2 options for energetic use

30-40 % of generated heat shall be used for biogas process (own consumption)

Source: Own Calculations GIZ, 2015

Foto: Fachverband Biogas 2015

21.10.2015


Average Investment Costs- Individual design

Specific Investment Costs Biogas Plant 75 kWel ca. 9.000 €/kWel.

only CHP and Flare ca. 1.700 €/kW el.








only CHP and Flare ca. 900 €/kW el.

Specific Investment Costs Biogas Plant 1.000 kWel ca. 3.500 €/kWel.

only CHP and Flare ca. 800 €/kW el.

Project size between 5.000 and 12.000 €/kW (average 8.000 €/kW) according to FvB 2015:

Reduction of investment costs possible through use of existing equipment like manure tanks

Standardized technology from already existing German market for small scale manure biogas plant available

Source: FNR, 2014

21.10.2015


Estimated Investment Costs (CAPEX)


Check real investment costs with turnkey-offer when detailed data (plans, substrates) is available

Contains 1 heated digester with gas storage roof and additional open storage tank

8.331 €/kW overall investment

Investment CostsDescription Quantity Cost per Unit Total Cost Life-Time Depreciation

1 Ground preparation 1.00 10,000.00 10,000.00€ 15.00 666.67€ 2 Foundations and canals 1.00 10,000.00 10,000.00€ 15.00 666.67€

3Installation of Digesters incl Heatingsystem, Protection and Insulation 1.00 70,000.00 70,000.00€ 15.00 4,666.67€

4 Buildings and Infrastructure 1.00 10,000.00 10,000.00€ 15.00 666.67€ 5 Storage Tank open 1.00 50,000.00 50,000.00€ 15.00 3,333.33€

6 Installation of equipment 1.00 50,000.00 50,000.00€ 15.00 3,333.33€ 200,000.00€

Planning and Engineering1 Project Concept and Permission 1.00 10,000.00 10,000.00€ 15.00 666.67€ 2 Design and Feasibility Studie 1.00 10,000.00 10,000.00€ 15.00 666.67€ 3 Site supervision 1.00 10,000.00 10,000.00€ 15.00 666.67€ 4 30,000.00€

Equipment and Components1 Pumping systems 1 7,500.00 7,500.00€ 15.00 500.00€ 2 Tube system Substrate 1 10,000.00 10,000.00€ 15.00 666.67€ 3 Agitation systems 4 5,000.00 20,000.00€ 15.00 1,333.33€ 4 Gas membrane 1 15,000.00 15,000.00€ 15.00 1,000.00€ 5 Biogas flare 1 5,000.00 5,000.00€ 15.00 333.33€ 6 Gas treatment 1 10,000.00 10,000.00€ 15.00 666.67€ 7 Gas pipelines 1 5,000.00 5,000.00€ 15.00 333.33€ 8 Measuring and Control 1 5,000.00 5,000.00€ 15.00 333.33€ 9 CHP and Transformer Station 1 60,000.00 60,000.00€ 15.00 4,000.00€ 10 Electrical Integration 1 20,000.00 20,000.00€ 15.00 1,333.33€

157,500.00€ Other

1 Miscelleanous 5% 387,500.00€ 19,375.00€ 15.00 1,291.67€ 2 Insurance and Bank Guarantees 2.5% 387,500.00€ 9,687.50€ 15.00 645.83€ 5 29,062.50€

416,562.50€ 27,770.83€

Civil Works

21.10.2015


Additional economic presumptions

Feed-in Tariff: 0,1566 €/kWhel for 400.000 kWh per year (50 kW, 8.000 full load hours per year)Sales heat price: 0,03 €/kWh Heat, 30 % of generated heat is used/sold externallyFinancing: 30 % equity, 5 % per year interest rate on commercial loan for 10 yearsGrant: 15 % of investment (e.g. websefff, UNDP/GEF)Manure costs: 0 €/t, 1st year after commissioning: 80% of production 80% sales and 80% of variable costsMaintenance costs: 1.5 % per year of investment for biogas plant plus 0,015 Euro/kWhel for CHPElectricity consumption: 6 % of overall generation for 0,05 Euro/kWhelOperation staff: 365 days x 1 h/d x 10 EUR/h = 3.650 EUR/yearAdmin and Overhead: 1 % of income, telecommunication: 25 €/monthInsurance: 0,25 % of overall InvestmentFees: 1,000 Euro/yearMiscellaneous: 2 % of incomeProduction cost increasing rate: 2 %Increasing of feed-in tariff referred to inflation rate Eurozone: 2 % per yearNPV and IRR-Evaluation basing on employed equity with

Return-On Equity (RoE)-expectation of 5%Solid manure from cattle farm in Serbia, Foto: GIZ 2014

21.10.2015


Cash Flow Biogas Manure Plant I (0 – 10 years)


Concept0 1 2 3 4 5 6 7 8 9 10

Total (15 years)

Heat Use 3,291.43 4,196.57 4,280.50 4,366.11 4,453.44 4,542.50 4,633.35 4,726.02 4,820.54 4,916.95 70,327.20

Electricity Feed-In 50,112.00 63,892.80 65,170.66 66,474.07 67,803.55 69,159.62 70,542.81 71,953.67 73,392.74 74,860.60 1,070,731.64

Reduction of CO²-Emission 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL INCOMES 53,403.43 68,089.37 69,451.16 70,840.18 72,256.99 73,702.13 75,176.17 76,679.69 78,213.29 79,777.55 1,141,058.84

Raw Material 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Maintenance Biogas plant 4,278.75 5,455.41 5,564.51 5,675.80 5,789.32 5,905.11 6,023.21 6,143.67 6,266.55 6,391.88 91,423.07

Electricity Consumption 960.00 1,224.00 1,248.48 1,273.45 1,298.92 1,324.90 1,351.39 1,378.42 1,405.99 1,434.11 20,512.10

Operation Staff 2,920.00 3,723.00 3,797.46 3,873.41 3,950.88 4,029.89 4,110.49 4,192.70 4,276.56 4,362.09 62,390.97Telekommunication 300.00 306.00 312.12 318.36 324.73 331.22 337.85 344.61 351.50 358.53 5,188.03

Biological Support 2,500.00 2,550.00 2,601.00 2,653.02 2,706.08 2,760.20 2,815.41 2,871.71 2,929.15 2,987.73 43,233.54

Fees and dues 1,000.00 1,020.00 1,040.40 1,061.21 1,082.43 1,104.08 1,126.16 1,148.69 1,171.66 1,195.09 17,293.42

Administration and Overhead 534.03 680.89 694.51 708.40 722.57 737.02 751.76 766.80 782.13 797.78 11,410.59

Insurance 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 15,621.09

Miscelleanous 1,068.07 1,361.79 1,389.02 1,416.80 1,445.14 1,474.04 1,503.52 1,533.59 1,564.27 1,595.55 22,821.18

Maintenance CHP 4,800.00 6,120.00 6,242.40 6,367.25 6,494.59 6,624.48 6,756.97 6,892.11 7,029.96 7,170.56 102,560.50

TOTAL Operation Costs 19,402.26 23,482.49 23,931.32 24,389.11 24,856.07 25,332.36 25,818.18 26,313.72 26,819.16 27,334.72 392,454.49

EBITDA 34,001.17 44,606.88 45,519.84 46,451.07 47,400.92 48,369.76 49,357.99 50,365.98 51,394.12 52,442.83 748,604.35

Interest costs 11,455.47 10,544.71 9,588.41 8,584.29 7,529.97 6,422.93 5,260.54 4,040.04 2,758.50 1,412.89 67,597.75

EBTDA 22,545.70 34,062.17 35,931.44 37,866.78 39,870.95 41,946.83 44,097.44 46,325.94 48,635.62 51,029.94 681,006.60

Taxes 0 0 0 0 0 0 0 0 0 0 0.00

NET SURPLUS 22,545.70 34,062.17 35,931.44 37,866.78 39,870.95 41,946.83 44,097.44 46,325.94 48,635.62 51,029.94 681,006.60

Investment Costs -416,562.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Debt Financing 229,109.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Repayment 18,215.24 19,126.01 20,082.31 21,086.42 22,140.74 23,247.78 24,410.17 25,630.68 26,912.21 28,257.82 229,109.38

Grant 62,484.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00

CASH FLOW -124,968.75 4,330.46 14,936.17 15,849.13 16,780.36 17,730.21 18,699.05 19,687.28 20,695.26 21,723.41 22,772.12 326,928.48

OVERVIEW CASH-FLOW in Euro

21.10.2015


Cash Flow Biogas Manure Plant II (11-15 years)


Calculated on equity, 5 % equity interest rate IRR on overall project cash flow 10-11 % for 15 years

Financial improvement possible through:

Increasing of manure input

Decreasing of investment costs

Increasing of feed-in-tariffs

Indicators 10 years 15 years

NPV (5%) 3,835.16€ 144,652.45€ IRR 5.57% 14.87%

Concept0 1 11 12 13 14 15

Total (15 years)

Heat Use 3,291.43 5,015.29 5,115.60 5,217.91 5,322.27 5,428.71 70,327.20

Electricity Feed-In 50,112.00 76,357.81 77,884.97 79,442.67 81,031.52 82,652.15 1,070,731.64

Reduction of CO²-Emission 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL INCOMES 53,403.43 81,373.10 83,000.56 84,660.58 86,353.79 88,080.86 1,141,058.84

Raw Material 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Maintenance Biogas plant 4,278.75 6,519.72 6,650.11 6,783.11 6,918.77 7,057.15 91,423.07

Electricity Consumption 960.00 1,462.79 1,492.05 1,521.89 1,552.33 1,583.37 20,512.10

Operation Staff 2,920.00 4,449.33 4,538.32 4,629.08 4,721.66 4,816.10 62,390.97Telekommunication 300.00 365.70 373.01 380.47 388.08 395.84 5,188.03

Biological Support 2,500.00 3,047.49 3,108.44 3,170.60 3,234.02 3,298.70 43,233.54

Fees and dues 1,000.00 1,218.99 1,243.37 1,268.24 1,293.61 1,319.48 17,293.42

Administration and Overhead 534.03 813.73 830.01 846.61 863.54 880.81 11,410.59

Insurance 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 15,621.09

Miscelleanous 1,068.07 1,627.46 1,660.01 1,693.21 1,727.08 1,761.62 22,821.18

Maintenance CHP 4,800.00 7,313.97 7,460.25 7,609.45 7,761.64 7,916.87 102,560.50

TOTAL Operation Costs 19,402.26 27,860.58 28,396.97 28,944.08 29,502.13 30,071.35 392,454.49

EBITDA 34,001.17 53,512.52 54,603.60 55,716.50 56,851.66 58,009.52 748,604.35

Interest costs 11,455.47 0.00 0.00 0.00 0.00 0.00 67,597.75

EBTDA 22,545.70 53,512.52 54,603.60 55,716.50 56,851.66 58,009.52 681,006.60

Taxes 0 0 0 0 0 0 0.00

NET SURPLUS 22,545.70 53,512.52 54,603.60 55,716.50 56,851.66 58,009.52 681,006.60

Investment Costs -416,562.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00Debt Financing 229,109.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Repayment 18,215.24 0.00 0.00 0.00 0.00 0.00 229,109.38

Grant 62,484.38 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00

CASH FLOW -124,968.75 4,330.46 53,512.52 54,603.60 55,716.50 56,851.66 58,009.52 326,928.48


21.10.2015


Cash Flow Biogas Manure Plant III (11-15 years) FiT = 18Ct/kWh


Calculated on equity, 5 % equity interest rate IRR on overall project cash flow 18-19 % for 15 years

Indicators 10 years 15 years

NPV (5%) 74,718.89€ 244,638.95€ IRR 15.04% 21.30%

Concept0 1 11 12 13 14 15

Total (15 years)

Heat Use 3,291.43 5,015.29 5,115.60 5,217.91 5,322.27 5,428.71 70,327.20

Electricity Feed-In 57,600.00 87,767.60 89,522.95 91,313.41 93,139.68 95,002.47 1,230,726.02

Reduction of CO²-Emission 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL INCOMES 60,891.43 92,782.89 94,638.55 96,531.32 98,461.94 100,431.18 1,301,053.22

Raw Material 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Maintenance Biogas plant 4,278.75 6,519.72 6,650.11 6,783.11 6,918.77 7,057.15 91,423.07

Electricity Consumption 960.00 1,462.79 1,492.05 1,521.89 1,552.33 1,583.37 20,512.10

Operation Staff 2,920.00 4,449.33 4,538.32 4,629.08 4,721.66 4,816.10 62,390.97Telekommunication 300.00 365.70 373.01 380.47 388.08 395.84 5,188.03

Biological Support 2,500.00 3,047.49 3,108.44 3,170.60 3,234.02 3,298.70 43,233.54

Fees and dues 1,000.00 1,218.99 1,243.37 1,268.24 1,293.61 1,319.48 17,293.42

Administration and Overhead 608.91 927.83 946.39 965.31 984.62 1,004.31 13,010.53

Insurance 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 15,621.09

Miscelleanous 1,217.83 1,855.66 1,892.77 1,930.63 1,969.24 2,008.62 26,021.06

Maintenance CHP 4,800.00 7,313.97 7,460.25 7,609.45 7,761.64 7,916.87 102,560.50

TOTAL Operation Costs 19,626.90 28,202.88 28,746.11 29,300.20 29,865.38 30,441.86 397,254.32

EBITDA 41,264.53 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 903,798.90

Interest costs 11,455.47 0.00 0.00 0.00 0.00 0.00 67,597.75

EBTDA 29,809.06 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 836,201.15

Taxes 0 0 0 0 0 0 0.00

NET SURPLUS 29,809.06 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 836,201.15

Investment Costs -416,562.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Debt Financing 229,109.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Repayment 18,215.24 0.00 0.00 0.00 0.00 0.00 229,109.38

Grant 62,484.38 0.00 0.00 0.00 0.00 0.00 0.00 0.000.00

CASH FLOW -124,968.75 11,593.82 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 482,123.03


≈ +15 % increasing FiT≈ +45 % increasing profitability!!

21.10.2015


Sensitivity analysis of project


21.10.2015


Technical and financial aspects to consider

Modification of existing manure tanks for conversion into a biogas digester possible by installing heat insulation, agitation system, gas storage, heating pipes and concrete protection?

Permission and concession procurement

Low dry matter content may require especific biogas technology or additional solid organic substrates

Availability of slurry and manure all over the year?

Additional external heat demand for further income growth

Grant requirement/availability? Future FiT?

Good Manure….

21.10.2015


Reasons for implementation

Additional cash-flow of over 326.000 € per project without taxation in 15 years possible (around 21.700 € per year)

18 Ct/kWh FiT: 482.000 € in 15 years, 32.000 € per year

Emission reduction of methane from manure storage

Environmental treatment of manure waste

Renewable energy sources, energy independency

Conditioning of fertilizer, nutrients stay in effluents additional market?

Upscale and multiplication possible

positive visibility

Economic improvement potential with new feed-in-tariffs

Investment cost reduction through adopted technology?

Mirotin Energo Biogas plant, Vrbas, Serbia - Foto: GIZ 2014

21.10.2015


Deutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ) GmbH

Development of a Sustainable Bioenergy Market in Serbia

Bože Jankovića 3911000 BelgradeSerbia

T +381 11 3912 507E [email protected]

Thank you for your attention!Thomas Mitschke, GIZ-DKTI Component Leader Project Development

Please visit us on: www.bioenergy-serbia.rs

21.10.2015

http://www.bioenergy-serbia.rs/

Seite 25

Financial structure: EBRD -WeBSEFF

Thomas Mitschke, GIZ DKTI programme

Loans and grants for businesses

WeBSEFF is available to provide financing of up to EUR 2 m (2.5 m for public stakeholders) to private businesses looking to invest in: (amongst others)

Modern technologies that cut energy consumption or CO2 emissions by at

Reduce costs and make enterprises more competitive Provide opportunities to replace old equipment and modernize

production www.webseff.com

Conditions:

Loan through third bank Equity: 20 - 40 % of investment Grant 5 -10 % of investment (10-15 % for public stakeholders) Interest rate 6-8 % per year

21.10.2015

http://www.webseff.com/


Financial structure: KfW-MEGLIP Program

Only for Serbian Municipalities and municipal public utilities

Max. loan amount: EUR 1.25 m

Loan through third bank

No equity requirement

Interest rate 5-8 % per year

Grant 15-20 % of overall loan amount after implementation www.meglip.org

21.10.2015

http://www.meglip.org/


Financial structure: KfW-IPEX Program

Target group and classifying: projects with German Technology

Financing: supplier and buyer credits (with ECA cover), corporate finance (including in connection with matching KfW funding), project finance, acquisition finance, guarantees and credits

Amount of Credit: Depending on the level of funding concrete business, no fundamental restrictions, Large volumes of up to EUR 100 million export contract value on the "European Recovery Program" (ERP), Small volumes from 0.5 - 5 million EUR, max. EUR 10 million, via the "Small Ticket exports“

Interest rates: ERP rates: Interest education upon minimum interest rules of the OECD Consensus, at the conclusion valid CIRR (Commercial Interest Reference Rate) of the relevant currency; Small Ticket exports: fixed or variable, the amount is based on specific export risk

Duration: depending on the specific business, 2 - 5 years; for project financing and more complex financing also significantly longer

https://www.kfw-ipex-bank.de

21.10.2015

https://www.kfw-ipex-bank.de/

https://www.kfw-ipex-bank.de/

Seite 28

Climate partnerships with the private sector KfW DEG I

Who can participate?German and European companies, also in cooperation with local companies, which have an annual turnover of at least 1 million euros, have a staff of at least ten people and have been in operation for at least three financial years

What is supported? promote the introduction of climate-friendly technology, adapt proven technology for greenhouse gas reduction to the specific

conditions in the target countries or demonstrate the application of innovative technology and have a structure-building effect in connection with the use of

climate-friendly energy.

21.10.2015

Seite 29

Climate partnerships with the private sector KfW DEG II

What is supported?

Interested companies are invited to submit project proposals to DEG at any time. In the event of a positive decision, the company and DEG jointly develop a comprehensive project concept. An amount of up to 200,000 euros per project can be provided through the programme. The company has to contribute at least 50 per cent of the overall project cost. You can find further information in the overview under:

https://www.deginvest.de/International-financing/DEG/Unser-Angebot/Förderprogramme/Klimapartnerschaften/

21.10.2015

https://www.deginvest.de/International-financing/DEG/Unser-Angebot/F%C3%B6rderprogramme/Klimapartnerschaften/









Other:

UNDP/GEF Fund: Public call for Biomass CHO up to 2.5 m EUR, 15 % Grant

Guarantee Fund of Vojvodina http://www.garfondapv.org.rs/

Provincial Secretariat for Energy and Mineral Resources Vojvodina: Public Calls for different grants, mosty for public calls (http://www.fkuapv.org )

Deutsche Bundesstiftung Umwelt (www.dbu.de)

International Climate Initiative (www.iki.de )

Private-Equity-Funds

GIZ- developpp-Programm www.developpp.de

ESCO, BOT, etc.

…more

21.10.2015

http://www.garfondapv.org.rs/

http://www.garfondapv.org.rs/

http://www.fkuapv.org/

http://www.fkuapv.org/

http://www.dbu.de/

http://www.iki.de/

http://www.developpp.de/


Implemented by:

Potentials and first Experiences of Energy-Supply-Contracting by implementing a fuel-switch to biomass for the heating of public

buildings in Serbia

Local subsidies / RDA Zlatibor / Center for Development Leskovac

21.10.2015


Fuel prices for heating in Serbia

Current fuel prices for heating in Serbia without VAT Source: GIZ study and calculation

Prices can differ depending on location, quality and quantity

FUELS

Agro Pellets 3.9 kWh/kg 100 €/t 26 €/MWh 30.2 €/MWhBrown coal 4.5 kWh/kg 100 €/t 22 €/MWh 29.6 €/MWhElectricity 1.0 kWh/kWh 60 €/MWhel 60 €/MWh 70.6 €/MWhLight Oil 12.6 kWh/kg 1.05 €/l 98 €/MWh 115.3 €/MWhLPG 12.9 kWh/kg 1.00 €/kg 78 €/MWh 86.3 €/MWhHeavy Fuel Oil (Mazut) 11.2 kWh/kg 550 €/t 49 €/MWh 61.3 €/MWhNatural gas 10.0 kWh/m³ 0.41 €/m³ 41 €/MWh 43.2 €/MWhWood Pellets 4.7 kWh/kg 160 €/t 34 €/MWh 37.8 €/MWhWoodchips (moisture 35 %) 3.1 kWh/Kg 55 €/t 18 €/MWh 20.9 €/MWhStraw in Bales 3.9 kWh/kg 45 €/t 12 €/MWh 14.4 €/MWhFirewood (moisture 45%) 2.5 kWh/kg 60 €/t 24 €/MWh 36.9 €/MWh

80%65%

Heat Values Price per Unit (net) Calorific Price

85%90%80%95%90%

Boiler Efficiency

Heat Price

85%75%85%

85%

21.10.2015


Fuels used for heating in public buildings in Serbia(without district heating)

21.10.2015


Project example with simple numbers: public school building in Serbia

Current heating system and its costs:

2 overdesigned, 20-years-old light fuel boilers á 400 kW

Current consumption: 75 t/a light fuel á 1.000 €/t = 75.000 €/a

Solution with a woodchip boiler concept:

1x 500 kW wood chip system for around 150.000 – 200.000 € Investment cost, current system as a back-up

Future fuel costs: 275 t/a á 65 €/t = 17.875 €/a

Source: GIZ, 2014

21.10.2015


Specific Investment costs for Biomass boilers

Source: Leitfaden Feste Biobrennstoffe 2014, FNR

€/kW

Upper value: Lower capacity Agro biomass fuel Steam boiler

Lower value: Higher capacity Pellets Hot Water Boiler

Heat Capacity in kW

Specific Investment Costs for fully automated biomass boilers

21.10.2015


BIOMASS-ESCO (Supply-Contracting)

Interface of supply/responsibility

ESCO-Company:

Designs, finances, builds, operates biomass plants until delivery border of heat/warm water

Responsibility for boiler efficiency Biomass purchasing, logistic and quality

supervision Maintenance Heat measuring (defined delivery point) Provides back up system

Client:

Pays heat energy consumption plus fixed monthly/yearly price for finance and operation

Responsible for internal heating system/consumption

Calorific meter (kWh/MWh)

Heat exchanger: Separated heating circles important!!

Buffertank to cover low demands

Storage, feeding system, boiler house and boiler

Source: Fug-Verlag, © Hargassner

21.10.2015


Advantages and disadvantages of the ESCO-ModellAdvantages: Budget for investment can be used for other public needs Public debts can be reduced or won`t increase Outsourcing of responsibility and risk for boiler efficiency, possible damages Implementation and operation of heating plant by experienced partner New technology requires additional capacities and knowledge – no need in case of ESCO No additional internal capacities for fuel logistics and quality control needed After PPP-procurement no additional administration for tendering (fuel, equipment, spare

parts) needed Concentration on core tasks Local income regarding biomass supply and operation will increase, since also a foreign

investor would purchase on local market

Disadvantages: Sharing savings with a private partner 10 years fixed contract with partner – less flexibility

21.10.2015


Crucial Documents for PPP-Procurement

Project proposal to be approved by assembly (prefeasibility level)

Feasibility Study with Business Plan and Value-for-Money-Analysis

Contract model and specifications

Bidding and selection criteria

Duration revision by PPP-Comission 3 - 6 weeks

21.10.2015


Contract criteria

Heat capacity (min./max.) and back up system

Heat delivery guarantee and penalty

Payment aspects

Duration, extraordinary cancellation

Delivery border (P&ID) and responsability interface

Property issues and access, ownership of special purpose vehicle

Var. price per consumption in € or RSD/MWh (price index?)

Fix price in € per month/year for capital costs (fix) and operation costs (index for salary/spare parts)

Guarantees (both sides)

Final agreements

21.10.2015


Price Setting

Variable Working Price: WP = ____ € /MWh * F/F0

F = Fuel index (market price or costs) in accounting period

F0 =Fuel index (market price or costs) in start of contract

Fix Price: FP = ___ € * (x + y * O/O0)

x = share of capital costs in %

y = share for operation costs in %

O= Operation costs index (salaries, mech. parts etc.) in accounting period

O0 =Operation costs index (salaries, mech. parts etc.) in start of contract

21.10.2015

Seite 41

Financial structure for ESCO: Example EBRD -weBSEFF

Thomas Mitschke, GIZ DKTI programme

Loans and grants for businesses

WeBSEFF is available to provide financing of up to EUR 2 m to private businesses looking to invest in: (amongst others) Modern technologies that cut energy consumption or CO2 emissions by at

Reduce costs and make enterprises more competitive

Provide opportunities to replace old equipment and modernize production

Conditions: Loan through third bank

Equity: 20 - 40 % of investment

Grant 5 -10 of investment

Interest rate 6-8 % per year

21.10.2015


Deutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ) GmbH

Development of a Sustainable Bioenergy Market in Serbia

Bože Jankovića 3911000 BelgradeSerbia

T +381 11 3912 507E [email protected]

Thank you for your attention!Thomas Mitschke, GIZ-DKTI Component Leader Project Development

Please visit us on: www.bioenergy-serbia.rs

21.10.2015

http://www.bioenergy-serbia.rs/

Seite 1 Thomas Mitschke, GIZ DKTI programme21.10.2015 Implemented by: Local subsidies / RDA Zlatibor...

Documents

Transcript of Seite 1 Thomas Mitschke, GIZ DKTI programme21.10.2015 Implemented by: Local subsidies / RDA Zlatibor...