K DEVELOPMENT CONSTRUCTION JSC
INVESTMENT PROJECT
44 MMWW PHOTOVOLTAIC POWERPLANT IN LOM
LLEEGGAALL WWAARRNNIINNGG
This presentation contains forward-looking statements,
that are based on management's belief, assumptions,
current expectations, estimates and projections about the
industry, the economy, and the Company itself. Words
like "anticipates," "believes," "confident," "estimates,"
"expects," "forecast," "likely," "plans," "projects," and
"should," and variations of such words and similar
expressions identify forward-looking statements. These
statements do not guarantee future performance and
involve certain risks, uncertainties, and assumptions that
are difficult to predict with regard to timing, expense,
likelihood and degree of occurrence. Therefore, actual
results and outcomes may materially differ from what is
expressed or forecasted. Furthermore, the Company
undertakes no obligation to update, amend, or clarify
forward-looking statements, whether as a result of new
information, future events, or otherwise.
CCOONNTTEENNTT
OOBBJJEECCTT
KK DDEEVVEELLOOPPMMEENNTT CCOONNSSTTRRUUCCTTIIOONN JJSSCC
VVAALLUUEE DDRRIIVVEERRSS
WWHHEERREE
TTOOTTAALL SSOOLLAARR RRAADDIIAATTIIOONN
TTHHEE PPRROOJJEECCTT
TTHHEE TTEECCHHNNOOLLOOGGYY
MMIILLEESSTTOONNEESS
SSOO FFAARR …… IINN DDEETTAAIILLSS
AAPPPPXX 11 :: PPAARRTTNNEERRSS
AAPPPPXX 22 :: SSOOMMEE RREELLEEVVAANNTT LLAAWWSS
CCOONNTTAACCTT
OOBBJJEECCTT
This proposal is for setting up a 4 MW capacity photovoltaic solar
power plant based on polycrystalline technology.
This environmentally friendly project will be supported by the
Bulgarian Government. The target for Bulgaria, as proposed by the
European Community, is that by 2020 16% of the gross final
consumption of energy in the country should come from Renewable
Energy Sources (RES). Furthermore the national targets are even
higher in terms of percentage of RES fed into the grid i.e. net of the
energy consumed by the producers. In this regard the Cabinet issues
annually Regulations setting PV energy prices based on the
estimations of the State Committee of Energy and Water Regulation.
These prices are the main incentive for the local solar energy
producers together with the State-guaranteed 25-years contract for
the PV energy buyout.
This document is prepared in order to illustrate the main features of
the project and introduce it to a possible potential co investor. The
aim is to report the key issues as well as to illustrate what has
already been done from the Bulgarian partner and main investor K
Development Ltd.
Once the project is completed there's an option to expand it for
further 15MW. In this regard K Development Ltd had purchased
adjacent plots of land (24ha+19,4ha) to secure further the project
growth.
KK DDEEVVEELLOOPPMMEENNTT CCOONNSSTTRRUUCCTTIIOONN JJSSCC
K Development Construction JSC develops Investment Energy
projects on the EU territory.
In 2008th
the Main Contractor K Development Ltd obtained First
Category Certificate released by the Bulgarian Construction Camber
in accordance to the Bulgarian Construction Act. This Certificate
licenses the company to execute all kinds of construction work - civil,
road, electricity, public utilities networks etc. with unlimited scope
regarding the volumes. The Certificate is based on the completed
projects during the years, the heavy machinery park of the company,
but most of all on our professional staff covering all construction areas.
The scope of K Development Ltd activities include:
•Assessment and preliminary development of investment projects
•Projects design, engineering and management.
•Construction upon turn-key completion.
•Supervision, consultancy and property management.
VVAALLUUUUEE DDRRIIVVEERRSS
WHY BULGARIA?
� Competitive taxation system. Corporate tax - 10%;
� EU membership since Jan 2007. Currency board system
(BGN is pegged to EUR at rate of 1.95583)
� Europe's lowest operational costs (average salary less than 350€)
� National Energy strategy till 2020: (16% RES from total
consumption in 2020)
� Feed in tariffs
WHY THIS PROJECT?
� Solid Investor - a leading and reputable Bulgarian Bank.
� The project is in an advanced phase, this will save time and
administrative burden.
� Already acquired an own slot into the central NEK (National
Electricity Company) collector.
� Option to develop further 15MW.
WWHHEERREE
The site lies in a favourable position, in fact there is an easy access to the road and
railways, this is a great plus during the construction phase when large amount of
equipment and materials will be transported to the site. Nearby there is also a
National Electricity Company (NEK) collector station.
TTOOTTAALL SSOOLLAARR RRAADDIIAATTIIOONN
The average values of Solar radiation in the town of Lom:
� Global Horizontal Radiation-1370 kWh/m2
� Global Radiation on an optimal tilt plane - 1520 kWh/m2
� Effective Radiation on an optimal tilt plane taking into account the overshadow –
1470 kWh/m2
Source: ENERGY EFFICIENCY AGENCY, Bugaria
TTHHEE PPRROOJJEECCTT
� The project is developed on a total area of 10ha in the region of Lom.
� The solar panels will generate a peak of 763 MWh in July and an
average power of 517 MWh respectively. The months with the least
produce are December and January – respectively 224 and 270 MWh.
� The expected average annual production is 5176 MWh
� There are no losses of power on the external utility cable
(proportional to its length) due to the fact the energy sold is measured
and paid on the site borders by the local power supplier CEZ.
� The 4MW project is completed and there is an option to expand it
with further 15MW. This will considerably reduce the clearances time
for the next stages. Also some cost savings will occur due to the already
executed external utility infrastructure.
� K Development Construction JSC purchased a slot inside a nearby
National Electricity Company (NEK) collector station, this will secure
the opportunity to contract the energy buy-up directly with the NEK
instead of contracting with the local supplier CEZ if the project is
expanded up to 15 MW .
Power capacity kW 4000
Manufacturer modules Yingli solar, CSUN
Model
Polycrystalline - YL 230 P-29b
CEEG 240
Manufacturer inverter SMA AG
Model inverter STP 15000 TL-10
Exp. Losses combined % 20.0
Electricity exported to grid MWh 5176
Electricity export rate
2011 €/MWh 357,45
TTHHEE TTEECCHHNNOOLLOOGGYY
� 17022 modules of 230 Wp each
� 260 inverters
� 5176 MWh annual output
MMIILLEESSTTOONNEESS
To do:
Further 15 MW Optional
Completed:
Q1 2011 Site completion. Putting into operation
Q4 2010 Site execution
Q3 2010 Commencing site landscaping and fencing
Q2 2010 Final Contract with CEZ for the energy buy-out
Q1 2010 Completing the technical design of the site
Q4 2009 Construction permit
Q4 2009 Signed Preliminary Contract with CEZ
Q3 2009 Signed preliminary contract with NEC. Obtained
clearance permission from the National Electricity
Company (NEC)
Q3 2009 Public utilities clearances
Q2 2009 Town planning design
Q2 2009 Greenfield
Q1 2009 Research and analysis
Research & analyses
1.) Climate – fogs, hails, temperature extremes, rainfalls, soils 2.) Geology, hydro-geology and geo-morphological
reports 3. ) Infrastructure analysis 4.) Economical analysis 5. ) Technological analysis 6.) Organizational analysis 7.)
Technical research
(Q1 2009)
Green field
1.) Land accumulation
2. ) Preliminary Design
3. ) Town-planning Permission
4.) Site-planning permission
(Q2 2009)
Town-planning design
Public utilities clearances
1. ) Water supply and sewerage
departments
2. ) Fire department
3.) Ecology department etc.
(Q3 2009)
Documentation for NEK, clearances
1.) Electro-technical design for connection with
NEK network 2.) Analyses : voltage level;
connection point; risk equipment; reserve power
source; power production schedule; energy balance;
main equipment info.
Preliminary Contract with the local distributor CEZ
CEZ takes the obligation to buy
from power in the volume up to
4 MW.
(Q4 2009)
Construction permit
Research & analyses
1.) Climate – fogs, hails, temperature extremes, rainfalls, soils 2.) Geology, hydro-geology and geo-morphological
reports 3. ) Infrastructure analysis 4.) Economical analysis 5. ) Technological analysis 6.) Organizational analysis 7.)
Technical research
Green field
1.) Land accumulation
2. ) Preliminary Design
3. ) Town-planning Permission
4.) Site-planning permission
(Q2 2009)
Town-planning design
Public utilities clearances
1. ) Water supply and sewerage
departments
2. ) Fire department
3.) Ecology department etc.
(Q3 2009)
Preliminary Contract with the local distributor CEZ
CEZ takes the obligation to buy
from power in the volume up to
4 MW.
(Q4 2009)
Construction permit
SSOO FFAARR …… IINN DDEETTAAIILLSS
Before commencing the technical design was performed diligent market research to establish reputable suppliers
offering good value for money. Completing the technical design of the site.
(Q1 2010)
(Q2,Q3 2010)
Site execution
(Q4 2010)
Putting into operation
72-hours trial works.
Site completion.
(Q1 2011)
Commencing of landscaping and fencing.
Final Contract with CEZ for the energy buy-out;
SSOO FFAARR …… IINN DDEETTAAIILLSS
AAPPPPEENNDDIIXX 11
Partners
Solar and Internal Electrical Installations Designer : Greentech
Solution Engineering Sofia
Legal Adviser : Arnaudov & Associates, Sofia
Referent Bank : Bulgarian Development Bank, Sofia
Auditors: Audit - Stoyanova Ltd, Sofia
Designer of Architecture, Constructions, Water Supply, Sewerage, Safety : Rangelov Consult Ltd
External Electrical (utility) Connection: Elmontproject Ltd, Montana
Tender Procedures and Contracting: K Development Ltd, Sofia
Independent Construction Supervisor: Interconsult Ltd, Montana
AAPPPPEENNDDIIXX 22::
SSOOMMEE RREELLEEVVAANNTT LLAAWWSS
In accordance to the Bulgarian Renewable and Alternative Energy
Sources and Biofuels Act (Act Prom. SG. 49/19.06.2007, additional SG.
98/14.11.2008, effective as from 14.11.2008):
� The RES energy is subject of mandatory buy-up by the National
Electricity Company (directly, in case of 5MW or more or trough the local
electricity distributor in case of less than 5MW installations);
� The sale of energy is based on contracts with a duration of 25 years. For
all new power plants producing electricity from RES with the exception of
water power plants over 10 MW The energy sale period starts with the
beginning of the electricity production, but not later than 31 December
2015.
The Power generation from RES is encouraged with regard of the
following issues:
� In order to determine the equal effort of initial investment costs the
feed-in tariffs take into account the characteristics of the various RES and
the various technologies for electricity generation;
The State committee sets up preferential prices for purchasing energy
generated through the use of RES (feed-in tariffs).
� The State takes the obligation to provide to the producers of electric
power generated from RES at least equivalent effect of preferential
treatment (in respect of their income per unit of electric power) in case of
change of the current incentive mechanism.
� The State guarantees a mandatory joining of utilities generating
electricity from RES and biofuels into the national grid;
AAPPPPEENNDDIIXX 22:: CCOONNTTIINNUUEE
Investments Stimulation Law
According to the Investments Stimulation Law, the State reduces
administrative burdens for the RES energy producers and takes the
obligation to provide the joining infrastructure for Projects at least
meeting the minimal amounts of investment required for the particular
region.
BBuullggaarriiaann RReenneewwaabbllee aanndd AAlltteerrnnaattiivvee EEnneerrggyy SSoouurrcceess aanndd BBiiooffuueellss AAcctt
Each year and not later than 31 March, the State Energy and Water
Regulatory Committee (SEWRC) determines the preferential prices
(feed-in tariffs) for buy-up of electricity generated from RES, except
for the electricity generated by hydroelectric power plants with
installed capacity exceeding 10 MW.
The preferential price of electricity generated from RES is
determine as follow:
A) 80% of the average sale price for end suppliers for the preceding
calendar year plus
B) An addition determined by the SEWRC depending on the type of
the primary energy source and the financial burden of the investment.
The addition for the next calendar year has to be not less than 95
percent of the addition for the current year.
80% of average
sale price for end
suppliers during
previous year
Subsidy
Not less than
95% of
previous year
Preferential
price
(feed-in tariff)
Preferential prices on
which the producers
sell the electricity to
public power utility
companies
Subsid.
Price
2010
Mwh
Euro
80%
from the
average
sell price
Additional
incentive
according to
Art.21, Par.2
from the Law
Preferential
prices for the
year 2011
A B A+B
6
Photovoltaic module
power plants
over 5 kWp
372,37 38,78 318,67 357,75
AAPPPPEENNDDIIXX 22:: CCOONNTTIINNUUEE
RReessoolluuttiioonn ooff tthhee SSttaattee CCoommmmiitttteeee ffoorr EEnneerrggyy aanndd WWaatteerr RReegguullaattiioonn
((SSCCEEWWRR)) №№ СС--44//3311..0033..22001111
The Power generation from RES is encouraged with regard of:
• the characteristics of the various RES and the various technologies for
electricity generation;
• providing equal preferential treatment to the producers of electric power
(in respect of their income per unit of electricity produced) in case of change
in the mechanisms promoting the energy generated from RES
• mandatory inclusion of utilities generating electricity from RES and
biofuels into the national grid;
• setting up preferential prices for purchasing energy generated through the
use of RES
• reducing administrative burdens for the producers of energy from RES
and on construction of relevant facilities.
www.kdevelopment.biz; [email protected]
Top Related