Fringe-of-Grid PV Projects - Normanton Solar Farm

Transcription

1 Fringe-of-Grid PV Projects - Normanton Solar Farm All-Energy Conference 2016 October 5, 2016 Josh Currah Project Manager, Energy Business

2 Safe Harbor Statement This presentation has been prepared by Canadian Solar Inc. (the Company ) solely to facilitate the understanding of the Company s business model and growth strategy. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisers or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation contains forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of These forward looking statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to its future performance, consolidated results of operations and financial condition. These statements can be identified by the use of words such as expects, plans, will, estimates, projects, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from expectations implied by these forward-looking statements as a result of various factors and assumptions. Although we believe our expectations expressed in such forward looking statements are reasonable, we cannot assure you that they will be realized, and therefore we refer you to a more detailed discussion of the risks and uncertainties contained in the Company s annual report on Form 20-F as well as other documents filed with the Securities & Exchange Commission. In addition, these forward looking statements are made as of the current date, and the Company does not undertake to update forward-looking statements to reflect future events or circumstances, unless otherwise required by law. 2

3 About Us - Canadian Solar 2 nd largest solar company globally by revenue and profits in Highest bankability approval rating of all solar companies in Longreach Solar Farm Size: 17 MW DC COD: Dec 2017 Normanton Solar Farm Size: 5 MW DC COD: Dec GW manufacturing capacity in Global project pipeline >13 GW. In Australia; 4.8 MW O&M care (DG), 5 MW in construction and 110 MW late-stage PV projects. 8,900 employees globally; with a growing team in Australia (currently 16 staff). Oakey Solar Farm Size: 30 (+60) MW DC COD: Q IKEA Rhodes Size: 0.5 MW DC COD: Nov 2016 Sydney DHL Size: 0.5 MW DC COD: Sept

4 About Us Scouller Energy Expertise in: Site Assessment: acquisition and development Technology: Renewable Energy technology assessment and acquisition Power network connection feasibility, negotiation and development Power Purchase Agreement (PPA) negotiation Scouller Energy s distributed renewable energy power station model aims to improve the quality of energy supply for regional communities and to reduce high transmission losses. 4

5 Normanton Solar Farm, QLD Remote QLD location within Shire of Carpenteria. 5 MW fringe-of-grid solar farm connected to 22kV feeder to Ergon s substation. Peak load profile of the Shire is ideal for PV. Financial support from ARENA & Knowledge Sharing requirement. Developer: Scouller Energy. EPC: Canadian Solar Australia. PPA Provider: Ergon Energy. NTP = Jan 2016 / COD = Dec

6 Normanton Solar Farm, QLD Technical Specifications: 16,000 Canadian Solar MaxPower Panels (310W). Mounted on 5600 ground screw piers. 22kV local switchgear to Ergon Substation (2km). 5 x 900kW central inverters. Over 6500 metric ton of CO2 offset. 6

7 Fringe-of-Grid Rationale ~1800km of network between Normanton and a generation source (Stanwell). Ergon owns & operates the network as non-nodal, Georgetown BSP has no published MLF. Average DLF is published and applied across entire western network. Total applied Loss Factor ~20%. This does not represent real losses at Normanton. DNSP receives Community Service Obligation subsidy Likely project impacts: Reverse flow of energy at times of low load. Significant reduction of energy flow from Ross. Significant reduction of resistive loss factors. 7

8 Fringe-of-Grid Rationale Collaboration with Ergon Energy; using the project as a test case to demonstrate the true impact on network losses. Collection of data (pre and post commissioning). Endorsement of Network Impact Work Plan. Agreement of outcomes/possible regulatory changes. ARENA also interested in data & results key Knowledge Sharing requirement. Potential targeted results: Network support payment for the project. Catalyst for change in Ergon s Western Zone to nodal (or partial nodal) network. More specific locational loss factors in network pricing regime - reduced CSO. Potential to generate/absorb reactive energy (VArs) w/ inverters compensate the grid. 8

9 Other Benefits & Support Specific locational loss factors for other projects. Demonstrate costs/challenges building medium-scale PV in tropical/high wind climate. Capital cost reduction by establishing supply chains, experienced resources in North QLD. Potential for future expansion with ESS technology. Ergon Energy support through Network Impact Plan. Local community support & identity: Local workforce, incl. indigenous labour. Display in Normanton Visitor s Centre. KSP Steering Committee & Community Events. Held in Normanton address concerns/inquiries. Visit by Bob Katter, MP & ARENA delegates. 9

10 Progress Update Site clearing & civil works completed. All Balance of System components procured and/or delivered to site compound: All mounting steel & panels. Inverters & DC Combiner Boxes. Install of DC array from Aug to Oct Install of AC works from Oct to Nov % Piles installed. Panel mounting ongoing. Commissioning protocol being established between NSF and Ergon Energy. Transmission asset construction completed. 10

11 Progress Update Aerial view of progress, looking NE towards Normanton Row of Canadian Solar Panels 11

12 Lessons Learnt Required approval of Access Standards by AEMO (even under 4.5 MVA capacity). 6 months process; modelling, generator performance standards and negotiations. The solar farm can provide significant capabilities in fixing the network and Ergon Energy s issues. i.e. in case of a SVC (static var compensator) failure, the inverter power factor is adjusted to assist with voltage control 12

13 Lessons Learnt Allocate resources to liaise with ARENA. Particular dedication is required in weeks leading up to Milestone submission dates. Compliance with OFSC s Fair Works Accreditation requirement of ARENA funding scheme. OHS system permeates down from top level management. Clear definition of scope and responsibilities of all parties from development stage onward (define interaction, DNSP, commissioning responsibilities, etc.) 13

14 Lessons Learnt Consider installation timeline and sequence during procurement avoid storage costs, double handling, etc. Implement formal Design Approval & Change process: Pile & racking installation methods. Sizing and rating of cables. Align requirements of equipment manufacturer & DNSP (Ergon). Exercising Safety in Design. Proper delivery and installation sequence to avoid unnecessary hazards. 14

15 Lessons Learnt Consideration for remote/regional builds: Site security paramount from mobilization; CCTV and site presence required. Use local logistic providers; experienced and cost-competitive. Transport to regional area contributes significant cost & time constraints. Specialized field engineering & equipment hire unavailable or added expense. Early engagement with local contractor; workshop/training to build capacity. Area prone to weather extremes (flood & extreme heat) - scheduling and proper measures. 15

16 Giving Back Give back to the local community even after COD of the project, i.e. go to schools and build awareness and knowledge. Disseminate the knowledge gained and integrate the solar farm with other examples showcasing sustainability in our daily life. Savannah Way Green Trail 16

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