rwanda 8.5 mw project -the first utility-scale solar plant ... africa... · rwanda 8.5 mw project...
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Rwanda 8.5 MW project - the
first utility-scale solar plant in
East Africa12 months from PPA to
Interconnection -
the quickest power project ever in
Africa?
Joint presentation by:
Lead investor EPC, O&M Developer
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Introduction to GWG
Gigawatt Global, a multi-national renewable energy company, is a leading frontier solar developer which developed the first utility-scale solar field in East Africa.
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A solar IPP with an integrated business model
Equipment
manufacturing
Scatec Solar
Project
developmentFinancing Construction Operations
Ownership
(IPP)
• Long-term
ownership
• Investment
JV with
• Performance
• Maintenance
and repair
• Project
management
• Construction
monitoring
• Equity and
debt
structuring
• Own
development
• Local
partners
• Funding of
developers
Attractive for developers: •Take 100% equity requirements together with Norfund •Bring all required debt financing•Do full EPC, O&M and asset management
INTRODUCTION TO SCATEC SOLAR
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A strong position in emerging markets
CC 66
BB
AA11
22
77
5588
Established 2001
Main offices
Norway Oslo
South Africa Cape Town
United States San Francisco
Market Cap ~ 400 MUSD
Operational Power Plants
Czech Republic 20 MW
Kalkbult, RSA 75 MW
Linde, RSA 40 MW
Dreunberg, RSA 75 MW
ASYV, Rwanda 9 MW
Plants under construction
Jordan 43 MW
Red Hills, Utah 100 MW
Honduras 60 MW
11
33 44
22
33
44
55
66
77
88
AA
CC
BB
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INTRODUCTION TO SCATEC SOLAR
• 430 MW in operation / under construction
• 310 MW in emerging markets
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copyright: Scatec Solar Solutions GmbH
www.scatecsolar.com • [email protected]
The opportunity – SSA is finally starting to add MWs
5
Generation
capacity in SSA
Power
investment by
source
Source: Research by Anton Eberhard
Most Chinese
projects are
large hydro
Thermal +
renewable
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Solar power is a potential game changer for Africa
“I’d put my money on the sun and solar energy.
What a source of power! I hope we don’t have to
wait until oil and coal run out before we tackle
that.”
Thomas Edison, 1931
Why solar power?
•Solar is cost competitive: Cheaper than new-build coal in
South Africa
•Simpler and faster to build than any other source – 9
months for 75 MW Kalkbut
•Scalable and flexible technology – rooftop to large-
scale, grid to off-grid
•Clean and sustainable
Why solar power?
•Solar is cost competitive: Cheaper than new-build coal in
South Africa
•Simpler and faster to build than any other source – 9
months for 75 MW Kalkbut
•Scalable and flexible technology – rooftop to large-
scale, grid to off-grid
•Clean and sustainable
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Rwanda overview
Significant reforms in the 2000s to enable private investment
•52 / 185 in World Bank “Doing Business” report
•Corruption Index (Transparency International): 49/183
•Net FDI inflows from 8 to 110 MUSD in 2000 to 2013 (~ 15x)
•Real GDP growth 8% 2001 - 2013
•Poverty rate from 59% in 2001 to 45% in 2011
Energy facts when development was initiated
•Population of 11+ million
•Installed capacity: 110 MW
•15% of population with grid access
•40% of capacity is diesel
•Targeted capacity by June 2018: 563 MW
•Existing IPP framework + 1 prior energy deal negotiated
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Project overview
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• Location: 60 km outside Kigali,
on Agahozo-Shalom Youth
Village land
• Capacity: 8.5 MWp, increased
grid capacity by 6%
• Annual generation: 15.5 GWh
• Technology:
• Polycrystalline modules
(BYD from China)
• Single-axis trackers
(Ideematec from
Germany)
• SMA inverters from
Germany
• PPA details: 25 years
• Total project cost: 23.7 MUSD
• Location: 60 km outside Kigali,
on Agahozo-Shalom Youth
Village land
• Capacity: 8.5 MWp, increased
grid capacity by 6%
• Annual generation: 15.5 GWh
• Technology:
• Polycrystalline modules
(BYD from China)
• Single-axis trackers
(Ideematec from
Germany)
• SMA inverters from
Germany
• PPA details: 25 years
• Total project cost: 23.7 MUSD
Developer Lead investor
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• Aug 2013: Start of DD Process
with potential lenders
• Aug 2013: EPC tender
• Oct 2013: Active engagement
with Norfund / Scatec
• Nov 2013: Scatec EPC offer; in-
principle agreement between
parties
• Nov 2013: Mandating of FMO
and EAIF as lenders
• Dec / Jan 2014: Final agreement
between GWG, Scatec and
Norfund
• 14 Feb 2014: Financial close
• Mar 2012: Partnership w / ASYV
• Apr 2012: EOI
• Jun 2012: First engineering visit
• Nov 2012: MOU with GoR
• Dec 2012: EIA, initial design and
Grid Study completed
• Jan 2013: Feasibility and EIA
studies approved
• Feb - July 2013: PPA
negotiations with EWSA
• July 2013: PPA signed
<<<<<<<<<<<<<
12 months from PPA to Interconnection
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Project development Financing Construction Operations
• Dec 2013 – Feb 2014: Negotiations with
sub-suppliers
• Feb 2014: Site mobilization
• Mar 2014: Site preparation completed
• Apr – May 2014: Project slow down
• Jun – Jul 2014: Installation of trackers,
modules and electrical work
• 26 Jul 2014: Interconnection
• Aug 2014: Testing and Commissioning
• Sep 2014: Formal Operation Date
July 2013 – PPA Feb 2014 – Financial Close July 2014 – Interconnection
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Summary of success factors
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• Strong local partner
• GoR a strong customer: Tight timeline, but committed to avoiding
delays and strong negotiators
• Strong legal representation– Norton Rose Fulbright
• Existing IPP framework
• Permits in good order – IFC performance standards
• From PPA to Financial Close, parallel negations but prioritization of
speed
• Debt providers (FMO/EAIF) had already worked together
• Strong equity consortium (Scatec / Norfund) which had worked
together and with track-record in Africa
• Integrated offering of Equity + EPC + O&M
• Taxes: Critical to get it right
• Grants for pre-development (OPIC / Power Africa and EEP)
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Recommendations for future large-scale grid connected solar deployment
• Standard and bankable contractual documents
• Experienced local and international advisers
• Strong dialogue with lenders
• Direct negotiations - critical to define criteria and evaluate “value for money”
• Feed-In-Tariffs – hard to get the tariff right
• Tender programs – more complex but most relevant to achieve scale
• Leverage international efforts like IFC «Scaling Solar» and Uganda «GET FIT»
• Long-term plan with clear targets
• Continuity in program vs one-off projects
• Land constraints need to be overcome
• Clear understanding of the grid required (e.g. grid issues South Africa)
• Grant funding in early stage development
Develop bankable
framework
Develop bankable
framework
Carefully
consider
procurement
approach
Carefully
consider
procurement
approach
Create scale and
predictability
Create scale and
predictability
Other Other
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Contacts
Andrzej Golebiowski
Vice President Business Development
Country Manager South Africa
Mobile: + 27 79 606 0225 (ZA) / + 47 45 21 49 04 (NO)
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Chaim Motzen
Managing Director and Co-Founder
Mobile: + 972 52 352 90 87