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8/6/2019 Aiming Zhou - Walk the Talk
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Walk the TalkBusiness Model of
ADBs 567 kWp Rooftop Project
Aiming Zhou
Energy Specialist
The 6thAsia Clean Energy Forum20-24, June 2011
Manila, Philippines
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Content
Approaches for Solar Project Financing
Purposes of ADBs Rooftop Solar Project Corporate
Technology Business Model
Details of Procurement Process
Pre-Bidding
Bidding
Implementation
System Specification/Performance
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Approaches forSolar Project Financing
Bankable SolarProjects
PPA
Utility Owned
System Lease
Contractual Intermediary
User Owned Others
Fia
nncing
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SunEdison Solar Business Model
SunEdison pays for unused roof spacefor the option to locate PV system there
SunEdison studies, design, finance and
build the solar power plant; it operates,monitors and maintains the solar facility
SunEdison sells solar electricity to thebuilding owners at competitive tariffthrough PPAs that maximize the use oftax credits and other incentives
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1. Greening ADB Building Operations
Energy Efficiency (chillers, lighting etc.)
Solar Power Supply to ADB Headquarter Bldg
Others
Purposes of ADB567 kWp Rooftop Solar Project
2002ADB
EnvironmentPolicy
2003Environment,Health and
Safety Policy
2004Six SigmaProgram
2007
SustainabilityReport
2009LEED
CertificationProcess
2011 beyond
Sustainabilityat ADB HQ
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1
10
100
1000
10000
100000
1000000
2 3 4 5 6 7 8 910
11
12
13
14
15
16
17
18
19
20
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>27
MWh
US Cents per kWh
# of MWh sold at each price point
Why Solar Energy
In 2010, $100 billion (approximately 5%) of global retail electricity
demand could be competitively addressed with solar power~600 GWs ($2 Trillion of Solar)
201020152020
Area of solar competitiveness
ElectricityPrice Rising
Source: Jigar Shah, 2011
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ADB Headquarters Complex
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ADB Headqauters Average Daily Load Profile
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Solar Energy Potential in Manila
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2. Technology Demonstration
3. Business Model, build-operate-transfer with PPA
Purposes of ADB567 kWp Rooftop Solar Project (continued)
ADB
Suntech/PropmechConsortium
PPA Power
Financing (commercial financiers) Construction (567 kWp)
Operation (~ 600 MWh per year) Transfer (buyout option within 15 yearsand free at year 16)
Portion of Facility Building rooftop isleased for 15 years at $1/sq meter, total
estimated area size is 5,166 sq meter Solar power is sold to ADB at the ratedecided by the bidding
Commercial Financier
Business
Financing
Loan
Repayment
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Details of Procurement Process
1. Pre Bidding Screening and clearance of legal, technical and commercial aspects
for the project within Manila Jurisdiction Internal process for project development and approval by ADB
Management
2. Bidding Process The Bidding Process: Conception pre- qualification criteria Draft technical and legal specification document Invitation to bid to qualified bidders (July, 2010) Selection of contractor / PPA signed
3. Project Development Construction (5-6 months) Trial operation and normal operation (December, 2011)
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Bidding Procedures Single-Stage: Two-Envelope
Deadline
ADBApproval
Preparation Evaluation I Evaluation II
TechnicalProposal
FinancialProposal
FinancialFinancial
TechnicalProposal
FinancialProposal
Technical
STOP
ADB
Approval
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Diagram of ADB Rooftop Solar System
567 kWpRooftop PV
System
ADB Substations
Meralco
34.5KV/380Y/200V
ADBHeadquaters
Compus
Inverters
600MWh/yr
Switch Busbar
18,300 MWh/yr
The solar system supplies about 3%of the electricity consumption in
ADBs complex
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ADB Rooftop Solar Project Visual Impact
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Highlights No upfront cost to ADB
The business model uses a PPA between the Suntech/Propmech
Consortium (Project Implementer) and ADB (End User), wherebythe project implementers bear the investment cost and O&M costsand user purchase the electricity at bid price.
ADBs credit worthiness helps the consortium
secure non-recourse loan financingPPA will help the project implementers to secure financing fromlocal commercial financiers. With a 15-year PPA from ADB, thisproject becomes a bankable project
Challenges to replicationChallenges could arise in countries that have regulated andpartially deregulated electricity markets. This model needspermission for third party-owned systems to sell to end users
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Thank You !
Contact: [email protected]
More information:
www.adb.org/clean-energy