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4 MW Lop Buri Solar Park in Thailand: How to Maximize Energy Yields and Return on Investment
Emmanuel GUYOT 23 June 2011, Manila

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Agenda

I.

Case Study: 2.4 MW Lop Buri Solar PV Park Reliability and Quality of key components Module, Inverter, BOS

II.

Issues in component Integration How can losses be minimized? Component and System Optimization

III.
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Solar PV Business Case ROI and /kWh vs. /Watt peak Lower Risk Guarantees

The Conergy System Technology

... Synchronized solar systems from one single source

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2.4 MWp Solar PV Park - Lop Buri, Thailand

Location: Lop Buri, Thailand Plant Area: 44,500 sqm Capacity: 2.37 MWp Output: 3500 MWh/year ~ 1,200 households C02 Emissions Saved: 1,860 tons/year First ALL CONERGY park in Asia Modules: 10,800 Conergy PowerPlus 220P Mounting Systems: Conergy SolarLinea Inverters: 135 Conergy IPG 15T Design & Engineering Services: Conergy and Annex Power 3rd Party Output Insurance Project equity IRR 15 %

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PV Projects have the advantage to be comparable to financial products as they are straight forward on a technological perspective

Reliable
| | | Technology is simple and passive Maintenance is light Module life time 25 years

Predictable
| | | Sunlight is stable through the years Energy yield are predictable and Regular Output directly linked to quality of modules / inverters O&M costs are stable

Safe
| | Returns are known well in advance Economical reality does not vary too much from simulations

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Component Integration: Typical Sources of Output Losses

Description Losses Factor to Consider

1 2 3 4 5 6 7

Temperature Losses Shading Losses PV Loss due to Irradiance Level Array soiling Loss Module array Mismatch Loss DC Wiring Losses Inverter Loss during Operation

8-12% 0 -1% 3-4% 1-2% 2-5% 1-2% 2-2.5%

Module Plant Design Modules Operations & Maintenance Modules Choosing the Right Cables, Minimizing Cable distances Inverters, Modules Cabling Sizing, Minimizing Cable distances Transformers Plant Design

8 9

AC Losses from Inverter to Grid @ peak Gain in overall solar insolation due to tilt of modules

2-3 % 2%

Only experienced solar system integrators will be able to optimize system yield across components and minimize output losses.
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Choose a system supplier who can deliver an optimal energy output/cost relationship through quality components and system optimization
Module Power Tolerance
> +2.5% +3.0% -3.0% Wafer Cells Modules Industry standard High Quality Module

Inverter

System integration

| A high performing system delivers an optimized electricity output in kWh / year = revenue per year | Decision factor is cost of the system / kWh / year

Inverter Efficiency
94-98.8% > 98%

Mounting Systems

Industry standard

High Quality Inverter

Quality: Return rates for modules

SYSTEM MANUFACTURER

2% 0.004% Industry standard High Quality Supplier

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The wrong technology choice could result in huge revenue losses for a project
|Influence of technology choice on project revenue per component CHANGE REMARK
System efficiency Module Inverter | Efficiency and reliability varies up to 3% between manufacturers

PROJECT EXAMPLE
| | 10 MWp (PC) solar farm in Manila region Estimated output: ~15 MWh/year

x
Irradiation |

Irradiation is very well predictable

| 6% efficiency loss: ~0.9 MWh/year | Loss of ~350 000 USD/year in revenues

=
System output

| Extrapolated to 25 years of project lifetime the loss amounts to | ~2.2 M USD on project NPV | ~ -1.8% on project equity IRR

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The choice of the EPC contractor is key as it is seen by the project players as the main guarantee of project returns
|Overview of risk-limiting function of EPC Provider for the project PROMOTERS | Individuals | Utilities EPC CONTRACTOR | Quality | Time INVESTORS | Family office | Funds | Utilities | Banks
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BANKS | Local | International | Development

REGULATORY AGENCY | Utilities | Regulatory Energy Commission | Municipalities

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PROJECT OPTIMIZATION / CASE STUDY OF A 10 MWP SOLAR POWER PLANT

There are several important variables that determine the equity IRR of a project
|Key Factors For Project Optimization Ranked by importance weight on EQUITY IRR 1 Equity portion required by banks 2 FIT 3 Project CAPEX 4 Power generation efficiency (Modules / Inverters) 5 Distance to Substation Meter (losses) 6 Interest rate 7 Duration of loan

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Our world is full of energy

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