Solar Power Initiative

Transcription

1 Solar Power Initiative by Government of the Punjab Presented by: Raza Ali Zaidi Procurement Manager Quaid-e-Azam Solar Power (Pvt.) Ltd

2 Table of Contents Current Energy Crises & Possible Ways Forward To Be (Solarized) or Not To Be Case for Solar Seizing the Opportunity 1st Coming Situational Analysis 2nd Coming Walking in the Shoes of an IPP The Company: Quaid-e-Azam Solar Power (Pvt.) Ltd. Challenges faced Our Approach Our Legacy Interest in the Market

3 Current Energy Crises & Possible Ways Forward

4 Snapshot of Current Energy Crises Sources: NEPRA State of the Industry Report, 2013 Energy Year Book, 2013

5 Discussion on Various Solutions Diesel/ Furnace Oil 4-5 years Solar + Wind Only 1 wind corridor in Pakistan Solutions Coal 5 years Pollution Hydel 7-10 years Unit: 4-5/kWh

6 To Be (Solarized) or Not To Be: That is the question

7 Cost[$/Watt] The Great Dip: Situation in the International Market [CELLRANGE], [SERIES NAME] [CELLRANGE], [SERIES NAME] [CELLRANGE], [SERIES NAME] Year Source: Chu et al. Opportunities & Challenges for Sustainable Energy Future, 2012 [CELLRANGE], [SERIES NAME] $/Watt

8 Solar Potential: Exploiting the Opportunity Pakistan in Solar Belt Standalone Micro Grids Possible Clean Source of Energy Germany kwh/m^ kwh/kwp Generation Capacity: 34 GW Pakistan kwh/m^ kwh/kwp Goal: 1 GW by

9 Demand (MW) Solar Irradiation [ W/m^2] Solar Irradiation & Demand Peak Match Characteristic Summer Day (MW) Solar Irradiation Curve Hours [hr] Source: NEPRA State of the Industry Report, 2013 Meteonorm Satellite data for Bahawalpur, PVSyst Database 0

10 Seizing the Opportunity Between Hope and Reality

11 Interest Level Seizing the Opportunity: The 1 st Coming IPP Solar World War Projected Interest Actual Response Not Exciting Enough What Just Happened? 0 18% ROE Tax Exemption Allocation of Land Water Works Access Road Security Financial Incentive Infrastructural Incentives

12 Situational Analysis Absence of Regulatory/Legal Framework (Tariff, EPA, IA & Financial Close) Grid-connectivity studies Ground Data Expertise STAGNANT MINDSET: This can t be done اے تے کدی ہو ای نئی سکدا اے تے مہنگا ای وڈا اے اے تے کدی نیٹ ورک تے لگے گا ای نئی اینا ویال اے کہ ساری رات بند پیا ریندا اے WHO TO TAKE THE LEAD?

13 The 2 nd Coming What Could be the Amrat Dhara One window solution for IPPs (easy talk) Vs. Walk in the Shoes of IPP

14 Walking in the Shoes of an IPP Challenges, Our Approach, Progress & Legacy

15 The Possibilities Completely financed by the Government or Debt Financing Model IPP Mode or through Government PMU Pilot Project size 10 MW or 100 MW For profit or Not for-profit

16 The Company: Quaid-e-Azam Solar Power (Pvt.) Ltd Public Sector, Private Limited, wholly owned by GoPb IPP mode Equity & Debt Based Financial Model Timeline: Chutkion Main Objective Oriented: 100 MW Pilot Project

17 After the 2 nd Coming, What Really Came? A Company, with NO In-house capacity Bound by PPRA World s Largest Pilot Project: 100 MW Start-up company in Public Sector in Pakistan Vs. our Timeline

18 Our Key Approach: Capacity Building Short Term Consultancies Long Term Consultancies In-house Technical Studies Feasibility Studies Development of Financial Model 17 Pre-qualification & qualification of EPC bidders Regulatory Approvals (LOI, Generation License, Tariff, LOS, EPA, IA)

19 Start-up Company in Pakistan Vs. our Timeline Dec.

20 Current Scenario Tariff Determination, EPA, IA: within a month (comparison with Wind) Grid Connection Date: March, 2015 Duration: 10 months Vs. 2 years

21 The Footprints Replicability of the Solar PV Project Availability of Ground Data and Expertise Upfront Tariff: ~$0.137 Vs. $0.163 Replicable Financial Model for IPPs Solar EPA, IA Availability of Grid-code & Grid-connectivity studies OVERCAME THE INERTIA

22 Interest in the Market Scenario after the 2 nd Coming

23 Interest Level The Interest Level of IPPs after the 2 nd Coming IPP Solar World War ~2500 MW LOI Not Exciting Enough 0 18% ROE Tax Exemption Allocation of Land Water Works Access Road Security Financial Incentive Infrastructural Incentives

24 The Way Forward Expertise available in the market Optimization via sell down Further reduction in the tariff after sell down ROE over and above the guaranteed value

25 THANK YOU!