Profitably powering the building sector

Transcription

1 Profitably powering the building sector Renewable energy business cases

2 PDP: Modules and Services MODULE 1 Information dissemination and contact establishment MODULE 2 Reference Projects MODULE 3 Framework conditions and legal environment Simon Bittner Profitably powering the building sector Page 2

3 New publication: Available at our booth Renewables Made in Germany F15 Simon Bittner Profitably powering the building sector Page 3

4 The Hospitality Sector Market overview

5 Tourism Growth in Myanmar 30 % average annual growth in tourist and business visa arrivals since , ,000 Tourist & Business Visa Arrivals to Myanmar 400, , , ,000 Total Tourist Visa Arrivals Total Business Visa Arrivals Simon Bittner Profitably powering the building sector Page 5

6 The Hotel and Condominium Industry 1,186 hotels and guesthouses in Myanmar with 46,690 rooms and growing fast 48 major new projects of 200 rooms plus in Yangon alone since 2012, booming construction countrywide Over 100 condominium projects in Yangon, 4,150 units added in 2014 Average sale price of US$2,300 m 2 Simon Bittner Profitably powering the building sector Page 6

7 Tourism sector Myanmar International tourism centers: Yangon, Nwe Saung & Ngapali Beach, Inle Lake, Bagan Eco-Tourism Grid-connection of Hotels in Myanmar Good Grid Connection Fair Grid Connection No Grid Connection Simon Bittner Profitably powering the building sector Page 7

8 Electricity supply situation Grid supply insufficient to provide 24 hours of electricity in most of the country: most properties requiring diesel generator back-up High electricity prices with Diesel US-Cent per kwh Poor insulation of buildings leading to high energy costs Commercial Consumption (kw/month) up to and above Grid Cost MMK/kWh ($cent/kwh) 75 (5,7) Up to 150 (11.5) Off-grid kwh Tariffs (est. ranges) MMK/kWh ($cent/kwh) mini-hydro/solar: (7,7 15,4) diesel generator: 300+ (23+) Simon Bittner Profitably powering the building sector Page 8

9 Typical Business cases Nay Pyi Taw & Kyaing Tong hotels

10 Business Case 1: Hotel Nay Pyi Taw Current electricity supply: Gridconnection & Diesel gensets Solar PV as fuel saving application parallel to the grid and diesel genset without batteries Solar PV production never exceeds internal power demand of hotel ( no grid feed-in) Proposed capacity PV Required area on rooftop Spec. annual yield Annual energy yield Current electricity costs Annual savings Investment (just components; no import & installation) Payback period Business Case Nay Pyi Taw kwp 3,172 m² 1,493 kwh/kwp 752,308 kwh/year 0.20 $/kwh 149,000 $/year 654,271 $ 4.4 years Source: Moerk GmbH & Co. KG Simon Bittner Profitably powering the building sector Page 10

11 Business Case 2: Princess Hotel 19-room, family-owned hotel in Kyaing Tong, the largest city in eastern Shan State. Monthly Grid Electricity Consumption Operates 7 days/week, full year Seasonality High: November-February, Low-season: May-September Avg. utility cost: 160 kyats/ kwh ($0.133/kWh) Avg. diesel consumption: 150 litres/month Avg. diesel and utility cost: $333/month Absender Titel TT.MM.JJJJ Page 11 Simon Bittner Profitably powering the building sector Page 11

12 Business Case 2: Princess Hotel Key Assumptions: 6 kwp solar PV system + battery 20 hours autonomy Business case: reduce grid-based kwh and diesel consumption PV system size: Battery storage: Avg. annual PV production: Technical and Financial Overview 6 kwp, roof-mounted 2000Ah, 48V (20 hours autonomy; 50% discharge depth) 9,498 kwh Key Conclusions: Annual savings of $2,967 Payback of 20 years Avg. annual PV utilized: System capital cost: Annual O&M cost: Avg. annual savings: Simple payback period: 25-year savings: 9,498 kwh 50,000 USD (24,500 USD for the battery system) 5% of annual PV production value 2,967 USD 20.0 years 74,175 USD Absender Titel TT.MM.JJJJ Page 12 Simon Bittner Profitably powering the building sector Page 12

13 Conclusions

14 Good-Fair-No Connection? Grid-connected Hotels in Myanmar 84 Good Grid Connection Fair Grid Connection No Grid Connection Simon Bittner Profitably powering the building sector Page 14

15 Main determinants for an attractive business case Top 3 determinants Electricity price High diesel consumption Constant electricity need (no big seasonality, 300+ operating days) becomes obsolete once net-metering / Feedin-Tariff is introduced Simon Bittner Profitably powering the building sector Page 15

16 Conclusions and Recommendations Electricity supply is one of the biggest challenges for the highly dynamic construction sector in Myanmar Solar PV is a technically and economically viable option Business case for solar PV in the grid-connected hospitality sector is viable In fair-grid or off-grid situations, the business case depends on Diesel hours Key Barriers include Limited financing options for solar projects Nascent regulatory framework, lack of standards and regulations (e.g. excess feed-in to the national grid) - but expected improved clarity in regulatory framework soon Recommended Actions Collect and share data to make the business case for solar projects Develop pilot projects to showcase the viability Identify funding for these pilot projects Simon Bittner Profitably powering the building sector Page 16

17 Thank you for your attention! Simon Bittner