The current status and outlook of Solar Energy Development. J&V Energy Technology Co., Ltd. Kai Tan

Transcription

1 The current status and outlook of Solar Energy Development J&V Energy Technology Co., Ltd. Kai Tan

2 Outline 1. J&V Introduction 2. Global and SEA Solar Energy Glance 3. Taiwan Solar Energy Overview 4. Philippines Solar Energy Overview 5. Conclusion 1

3 About J&V J&V J&V Energy Technology Co., Ltd. (J&V) is a professional investor of solar power plants. The competitive advantages of J&V include the resource integration and outstanding ability in funding. We operate investment and maintenance of solar power plants. J&V provides one-stop service by cooperating with strategic partners and has developed 82 MW solar projects in Taiwan. Shareholders n Cascade Capital Management llc. n Firich Enterprises Co., Ltd. 伍豐科技股份有限公司 n Formosan Union Chemical Corp. 和益化學工業股份有限公司 2

4 One-stop Service 1 On-site exploration Development permission acquisition 4 2 Capacity generation simulation Solar plant building and construction 5 3 System design Operation and management 6 3

5 First J&V develops the first ground-mounted solar PV project in severe land subsidence area in Yunlin Largest J&V develops the largest ground-mounted solar PV project in severe land subsidence area in Yunlin Innovation J&V develops the largest rooftop of First Solar s thin film solar modules in Asia. Alliance J&V founds JNV solar Power to provide full-time O&M service for solar power plants in alliance with NEO Solar Power Corp. and New Green Power Co., Ltd. Congress J&V wins public tender to install rooftop solar system for the legislative Yuan and make it to be green congress Port J&V wins public tender to install rooftop solar system for Su-ao Port s no.4 transit shed and make it to be an international green port. Environment J&V wins public tender to install ground-mounted solar plant for the Wenshan Landfill in Taichung City. 4

6 Legislative Yuan First ground-mounted type in subsidence area in Yunlin Largest roof mount of First Solar s thin film solar modules in Asia Largest ground-mounted solar PV project in subsidence area in Yunlin 5

7 Outline 1. J&V Introduction 2. Global and SEA Solar Energy Glance 3. Taiwan Solar Energy Overview 4. Philippines Solar Energy Overview 5. Conclusion 6

8 Overview of 2016 Global Solar Energy Milestones Completed experience n Four counties in Asia among the top eight n China lead the world in solar market Annual installed capacity for selective countries in China 34.5GW 2 USA 14.7GW 3 Japan 8.6GW 4 India 4GW 5 UK 2GW 6 Germany 1.5GW 7 Korea 0.9GW 8 Australia 0.8GW Cumulative installed capacity for selective countries in China 78.1GW 2 Japan 42.8GW 3 Germany 41.2GW 4 USA 40.3GW 5 Italy 19.3GW 6 UK 11.6GW 7 India 9GW 8 France 7.1GW Sources: IEA, International Energy Agency 7

9 Overview of 2016 SE Asia Solar Energy Milestones Completed experience n About 1.7GW of solar power was build in SE Asia in 2016 Focused on two countries Philippines and Thailand Solar capacity additions in Taiwan is 368MW in 2016 MW Solar Capacity Additions in Thailand Philippines Indonesia Singapore Malaysia Vietnam Myanmar Cambodia Laos Sources: Taiwan Bureau of Energy, Ministry of Economic Affairs statistic data, The Lantau Group material 8

10 Outline 1. J&V Introduction 2. Global and SEA Solar Energy Glance 3. Taiwan Solar Energy Overview 4. Philippines Solar Energy Overview 5. Conclusion 9

11 Overview of Taiwan Energy Industry Milestones Completed experience Until 2016, total installed capacity 49,036MW which 75% comes from thermal power; total power generation 264 TWh which 82% comes from thermal power. From 1995 to 2016, Renewable energy rises from 7.34% to 9.10% of total installed capacity and from 4.13% to 4.77% of total power generation. New government launches energy transition and power market reform to develop renewable energy in June, Sources: Taiwan Bureau of Energy, Ministry of Economic Affairs statistic data 10

12 Renewable Energy Development Act Milestones Completed experience n The Overview and Vision of Renewable Energy Development Act in Taiwan Fund Establishment Feed-in Tariff (FiT) Capacity Target Renewable Energy Development Act Land-use Restriction Exclusion Grid Connection And Power Purchasing Obligations Subsidy Renewable energy development act is activated on 8 July Energy transition Policy is performed in June, 2016 to establish a lowcarbon, sustainable, stable, highquality and economically efficient energy system, and to achieve the Nuclear-Free Homeland vision and Renewable 20%, coal fired 30%, and gas fired 50% in the structure of energy distribution by

13 Renewable Energy Development in Taiwan n Renewable energy target in Taiwan by % electricity generation from renewable energy 20GW for solar power capacity Sources: Taiwan Bureau of Energy, Ministry of Economic Affairs statistic data 12

14 Renewable Energy Development in Taiwan Milestones Completed experience n Overview of Solar Energy Strategy Solar 2-Years Promoting Projects 1.52GW, from 2016/7 to 2018/6 Mid/Long-term Solar promotion program Cumulative 20GW until 2025 Mid/Long-term Solar promotion program 20 Solar Project 2016/ /06 Roof Type 3GW Ground Type 17GW 20GW 10 Roof Type 910MW Ground Type 610MW 6.5GW GW Sources: Taiwan Million Rooftop PVs Promotion Office, Bureau of Energy, Ministry of Economic Affairs statistic data, 13

15 Renewable Energy Development in Taiwan Milestones Completed experience n Feed-in Tariff for solar energy in Taiwan Tariffs and formula is reviewed annually. Tariff applied for 20 years. Tariff rates are set on date when commercial operation date (COD) Taiwan :Solar Fit Rates for 2017 Classification Capacity Fit Rate High Performance Bonus 6% TWD/kWh ~$/kwh TWD/kWh ~$/kwh 1kW-20kW Rooftop Solar 20kW-100kW kW-500kW Above 500kW Ground Mounted Floating PV Projects Sources: Taiwan Bureau of Energy, Ministry of Economic Affairs statistic data 14

16 Renewable Energy Development in Taiwan Milestones Completed experience n Establishment of PV-ESCO mechanism Encouraging banks to participate in project financing and to provide soft loans to PV-ESCO players Zero financing burden for the site provider Two major business models in Taiwan: Investment vs. Rent Bank finance for 80% reimburse loan principal and interest PV-ESCO (J&V) roof renting system warranty and after-sales service General Residential Roof system electricity selling income wholesale electricity Taiwan Power Company FiT Mechanism Sources: Taiwan Bureau of Energy, Ministry of Economic Affairs statistic data, ITRI Material 15

17 Renewable Energy Development in Taiwan n Benefit of solar energy installation Extra investment income Decrease rooftop temperature, saving air-conditioner cost Increase room for use Make construction beautiful Enhance corporate image 16

18 Renewable Energy Development in Taiwan n Two Major Business Models in Taiwan Solar Market Rent Investment Land, rooftop owner Lease Investor Land, roof-top owner = Investor Electricity selling income Permit application Electricity selling income Permit application Taiwan Power Company Taiwan Power Company 17

19 Outline 1. J&V Introduction 2. Global and SEA Solar Energy Glance 3. Taiwan Solar Energy Overview 4. Philippines Solar Energy Overview 5. Conclusion 18

20 Overview of Philippines Energy Industry Milestones Completed experience Until 2016, total installed capacity 21GW which 68% comes from thermal power; total power generation 91TWh which 76% comes from thermal power. Renewable energy is 32% of total installed capacity and 24% of total power generation. The current project pipeline is heavily dominated by new coal power plant investments. If no action is taken, GHG (Green House Gas) emissions are expected to 4 times until Installed Capacity 2016 Power Generation 16% 17% 21GW 32% Coal Oil-Based Natural Gas 22% 6% 91TWh 24% Coal Oil-Based Natural Gas 35% Renewable Energy 48% Renewable Energy Sources: Philippines Department of energy 2016 Power Statistic Data 19

21 Renewable Energy Development in Philippines Milestones Completed experience n Incentives for renewable energy investors Fiscal incentives to RE developers: 1. Income Tax Holiday (ITH): income taxes free for the first 7 years 2. Ten percent corporate tax rate: 10% after seven years of the ITH. 3. Ten year duty-free importation of RE machinery, equipment and materials 4. Zero percent value-added tax (VAT) rate 5. Special realty tax rates on equipment and machinery 6. Tax exemption of carbon credits 7. Tax credit on domestic capital equipment and services n Feed-in Tariff (FiT) Policy for Solar energy The ERC (Energy Regulatory Commission), on July 12, 2010, promulgated ERC Resolution No. 16, series of 2010, entitled Resolution Adopting the Feed-In Tariff Rules, which became effective on August 12, On July 23, 2012, first round FiT rate of Solar is PhP9.68/kWh with 50MW quota. On March 15, 2016, second round FiT rate of Solar is PhP8.69/kWh with 500MW. Tariff rates are set by First Come First Serve base. All investors are waiting for the third round FiT program. Sources: IEA, International Energy Agency 20

22 Renewable Energy Development in Philippines Milestones Completed experience n Opportunities of PPA with Local DU Besides FiT solar projects, foreign investors are looking for opportunities of PPA in Philippines solar market. n PPA vs. FiT A PPA is a bilateral agreement between a Solar power plant investor and a Distribution Utility (DU, local electricity company) for the purchase and supply of power. ERC need to review and approve the rate of PPAs according to the Republic Act No. 9136, entitled Electric Power Industry Reform Act of 2001 (EPIRA) Sources: GIZ 2014 Solar PV Guidebook Philippines 21

23 Renewable Energy Development in Philippines Milestones Completed experience n Expectation to Philippines Solar investment environment A more transparent and simpler permitting process - Developers of utility scale RE projects in the Philippines must currently undergo up to 165 individual administrative steps in order to accomplish all the necessary permits prior to starting construction of their RE facility. Next round of FiT program - Investors are looking for next round of FiT program. - Suggest to optimize the existing FiT schemes and amend first come first serve policy. Support Schemes for PPA Project - Establish SOP to expedite ERC review and approval process for PPA project. 22

24 Outline 1. J&V Introduction 2. Global and SEA Solar Energy Glance 3. Taiwan Solar Energy Overview 4. Philippines Solar Energy Overview 5. Conclusion 23

25 Conclusion To match Government s 20GW target by 2025, there will be 2GW capacity total projects in solar energy market per year in average. In Taiwan solar market, J&V company has strong local relationship to secure projects and is familiar with all permitting process which is the best partner for local and international investors to operate two major business model and provide all relative services. J&V is interested in Philippines solar market and has a PPA project in Mindanao which just received the approval from ERC. Though the ERC review time is over half-year, J&V is still confident in Philippines solar market and looking for more investment opportunities and strong local partners. 24

26 Thank You For more information please contact us Kai Tan (Office) ADDRESS: 14F, No. 58, Section 3, Minquan E Rd, Zhongshan District, Taipei City,