Industrial PV-Diesel Hybrid Applications Real-life Experience

Transcription

1 Industrial PV-Diesel Hybrid Applications Real-life Experience + Diesel Genset PV PV Trade Mission Saudi Arabia Solar/Diesel Power Supply Riyadh, 17 th Sep Ahmad Hamdan

2 Disclaimer IMPORTANT LEGAL NOTICE This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of SMA Solar Technology AG (the "Company") or any present or future subsidiary of the Company (together with the Company, the "SMA Group") nor should it or any part of it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness and nothing herein shall be construed to be a representation of such guarantee. The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this forward-looking statements presentation may be statements of future expectations and other forward that are based on the management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements as a result of, among others, factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements which speak only as of the date of this presentation. This presentation is for information purposes only and may not be further distributed or passed on to any party which is not the addressee of this presentation. No part of this presentation must be copied, reproduced or cited by the addressees hereof other than for the purpose for which it has been provided to the addressee. This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933 as amended. 2

3 Each day, over 20 MW of SMA PV inverters are installed worldwide 53 MWp, Germany 85 MWp, Italy 14 MWp, South Korea 44 MWp, Thailand 16 MWp, USA 10 MWp, UAE 10 MWp, Greece 22 MWp, Spain More than 35GW Worldwide 3

4 Agenda 1 The (Diesel) Genset Market 2 PV-Diesel Hybrid Systems 3 Real-life Experience 4 Business Case 5 Summary and Conclusion 4

5 1 Genset Market The annual (Diesel) Genset market is 40 GW on average Half of the installations are 24/7 base load applications Annual market 1 by type of application (GW) Impact of the economic crisis Standby/ emergency Peak load 24/7 base load Ø = 40 GW Potential for PV-Hybrid applications On top of new installations, there is over 500 GW cumulative installed Genset base! 1. Only systems > 500 kw considered; numbers indicate nominal power 2. Reporting period: June 2007 May Reporting period: June 2008 May 2009 Source: 33th-37th Power Generation Order Survey (Diesel & Gas Turbine Worldwide) 5

6 Agenda 1 The (Diesel) Genset Market 2 PV-Diesel Hybrid Systems 3 Real-life Experience 4 Business Case 5 Summary and Conclusion 6

7 2 PV-Diesel hybrid systems Why do we talk about PV-Diesel hybrid systems? Electricity Cost ($/kwh) Today Time The cost advantage of PV-Diesel hybrid systems compared to conventional Diesel Gensets will become even more dominant in the future! Source: SMA 7

8 2 PV-Diesel hybrid systems In sunny regions: 1 MWp PV saves up to 1 truck load of Diesel fuel in 1 month This adds up to 450,000 liter fuel savings per year! Source: SMA 8

9 2 PV-Diesel hybrid systems Typically, power for industrial loads in remote or weak-grid areas is supplied by conventional Genset systems Industrial Load e.g. Mining facility, cement factory, metal works Powerhouse Includes main busbars, genset controllers, etc. Genset System The main component in the electricity supply system Source: SMA

10 2 PV-Diesel hybrid systems Adding Photovoltaics is the first step towards a Hybrid solution in order to save fuel... Industrial Load e.g. Mining facility, cement factory, metal works PV Modules/BOS 1 PV inverter 1. Balance of System (e.g. cabling, module racks, etc) Source: SMA Powerhouse Includes main busbars, genset controllers, etc. Genset System The main component in the electricity supply system

11 2 PV-Diesel hybrid systems... but a smart communication between Genset and PV is mandatory to leverage the full fuel-saving potential Industrial Load e.g. Mining facility, cement factory, metal works PV Modules/BOS 1 PV inverter Fuel Save Controller Solution allowing for intelligent communication between PV plant and gensets 1. Balance of System (e.g. cabling, module racks, etc) Source: SMA Powerhouse Includes main busbars, genset controllers, etc. Genset System The main component in the electricity supply system

12 2 PV-Diesel hybrid systems Integration of storage is the next logical step in order to further increase the PV penetration Industrial Load e.g. Mining facility, cement factory, metal works PV Modules/BOS 1 PV inverter Fuel Save Controller Solution allowing for intelligent communication between PV plant and gensets Battery Inverter (optional, for increased PV penetration) 1. Balance of System (e.g. cabling, module racks, etc) Source: SMA Powerhouse Includes main busbars, genset controllers, etc. Genset System The main component in the electricity supply system

13 2 PV-Diesel hybrid systems PV-Diesel-Hybrid System Setup with PV penetration < 20% PV Power Plant Genset Power Plant Load 13

14 2 PV-Diesel hybrid systems PV-Diesel-Hybrid System Setup with PV penetration < 60% PV Power Plant FuelSave Controller Genset Power Plant CONT IFM Load DAQ 14

15 2 PV-Diesel hybrid systems System Priority The FSC does not control the Gensets, it controls the PV Power to keep the Gensets on allowed operation conditions. The Gensets are reacting only indirectly acc. to load conditions. Main Energy Source Additional Energy Source Energy Consumption Leading System Genset Genset Power PV Power + Load Supporting System Data FSC PV 8 PV is not negatively impacting the leading system its a supporting source! 15

16 Agenda 1 The (Diesel) Genset Market 2 PV-Diesel Hybrid Systems 3 Real-life Experience 4 Business Case 5 Summary and Conclusion 16

17 3 Real-life experience Reference example: PV-Diesel hybrid application for a cotton mill in India SMA reference example: Cotton Mill in India One 1250 kva Powerica Genset + grid connection Upgraded with 1 MWp PV Inverter: 44 STP 20000TLEE Fuel Save Controller PV power production: ca GWh p.a. (if the grid is available, a net metering scheme applies) Source: SMA 17

18 3 Real-life experience Reference example: Layout of the system Source: SMA 18

19 3 Real-life experience Real-life data: smooth interaction between PV, grid and genset kw PV power Genset power Control value PV Actual load Sunrise 3 Grid failure, start of genset 5 Genset compensate cloud effect 2 Drop of PV power (clouds) 4 PV covers load changes Source: SMA project example 6 Grid back again, PV synchronizes

20 3 Real-life experience Reference South Africa: First MW-sized PV-Diesel Hybrid worldwide at Thabazimbi Chrome Mine Mining site in South Africa 2x800 kva Perkins Gensets kva grid connection Upgraded with 1 MWp PV Modules: 4170 high-efficiency 240Wp poly-si Inverter: 63 STP FSC 1 PV power production: ca. 1.8 GWh p.a. Annual savings: approx. 450,000 liter Diesel fuel 1. Fuel Save Controller Source: SMA project example 20

21 3 Real-life experience Reference UAE: Al-Jarnin Island in Abu Dhabi 755kWp remote, off-grid residential complex in Abu Dhabi, UAE 2.4 MW set of diesel generators upgraded with 755kW of PV power 32 Sunny TriPower + 1 FSC PV power production: approx. 1.3 GWh yearly Source: SMA project example 21

22 3 Real-life experience Reference Lebanon: Zouk Mosbeh kw + expansion to 1MW Industrial rooftop with limited grid availability Plastic Molding Factory of Advanced Plastic Industries in Lebanon Weak grid connection and back-up gensets 3 x 750 kva Gensets upgraded with 192 kw PV power in first phase and expansion to 1 MW already planned Grid stabilization due to PV production at grid edge PV power production: approx. 250,000 kwh yearly Annual savings: approx. 70,000 liter Diesel fuel Source: SMA project example 22

23 3 Real-life experience Reference India: Tirupur 1 MW Rooftop with limited grid availability and diesel as back-up Spinning mill of Alpine Knits (India) Pvt Ltd Weak grid connection and back-up gensets with both PV grid feed in and fuel saving capabilities 1 x 1250 kva Gensets upgraded with 1 MW of PV power 43 Sunny TriPower + 1 FSC PV power production: approx. 1.3 GWh yearly Source: SMA project example 23

24 Agenda 1 The (Diesel) Genset Market 2 PV-Diesel Hybrid Systems 3 Real-life Experience 4 Business Case 5 Summary and Conclusion 24

25 4 Business case PV-Diesel-Hybrid is already a real business case in sunny regions with effective Diesel cost > 1 USD/liter Payback time (years) Annual PV full load time 900 kwh/kwp (e.g. Germany) 1200 kwh/kwp (e.g. Italy) 1500 kwh/kwp (e.g. India) 1800 kwh/kwp (e.g. Australia) kwh/kwp (sunniest spots worldwide) 2.4 Financially attractive area Diesel cost 1 (USD/l) 1. Effective cost at point of consumption including fuel transportation and storage cost etc. Assumptions : 1 MW PV plant; 100% consumption of PV power possible; CapEx=2,000 USD/kWp; OpEx= 2% of CapEx p.a.; PV financing 25 with 30% equity/70% debt with 7% interest rate and amortization time of 5 years; Genset efficiency 3.5 kwh/l (net electricity production); CapEx and Maintenance cost for Diesel genset not included, since PV is considered as add-on here, not as genset hardware substitution Source: Web search, SMA analysis

26 4 Business case A detailed cashflow analysis clearly shows the financial attractiveness of PV-Diesel-Hybrid Assumptions (Base Case) DCF 2 Analysis PV plant size: 2 MWp Solar irradiation: 1600 kwh/kwp p.a. PV system cost 1 : 2000 USD/kWp Effective fuel cost: 1.30 USD/liter Effective savings 2 (Mio. USD) Break-even after 4-5 years Equity Debt Genset efficiency: 3.5 kwh/liter No annual increase of fuel cost! 0-2 Years CapEx (annual OpEx of 2% of CapEx included); PV system cost will significantly depend on country and project specifications; in this case, the PV is financed by 30% equity, 70% debt (with 7% interest rate and 5 year amortization time); cashflow discount factor: 8% 2. Discounted Cash Flows Source: SMA analysis 26

27 Agenda 1 The (Diesel) Genset Market 2 PV-Diesel Hybrid Systems 3 Real-life Experience 4 Business Case 5 Summary and Conclusion 27

28 5 Summary and conclusion PV-Diesel-Hybrid covers a broad range of applications Project selection criteria PV-Diesel-Hybrid applications (examples) What preconditions should be fulfilled? Significant amount of 24/7 base load gensets to leverage high fuel saving potential Fit of load curve and daily profile of PV power Sufficient space available for PV installation (PV just needs more space than a Genset) High effective Diesel fuel cost 3 for the Genset operator (e.g. > 1 USD/ liter) End user mindset: need to save OpEx 1, CO 2 obligations, and/or will to go green Utilities/ IPP 2 (in off-grid/weak-grid regions) Remote industries (e.g. mining, oil&gas, desalination) Big Agriculture (e.g. irrigation systems) Tourism (e.g. hotels, resorts) Real estate (e.g. offices, warehouses) 1. Operational Expenditures 2. Independent Power Producer 3. Effective cost at point of consumption including fuel transportation and storage cost etc. Source: SMA 28

29 Thank you for your attention! Fuel Save Solution on Youtube: 29