Rwanda 8.5 MW project -the first utility-scale solar plant in East Africa 12 months from PPA to Interconnection - the quickest power project ever in Africa? Joint presentation by: Lead investor EPC, O&M Developer 1
Introduction to GWG Gigawatt Global, a multi-national renewable energy company, is a leading frontier solar developer which developed the first utility-scale solar field in East Africa. Page 2
INTRODUCTION TO SCATEC SOLAR A solar IPP with an integrated business model Scatec Solar Equipment manufacturing Project development Financing Construction Operations Ownership (IPP) Own development Local partners Equity and debt structuring Project management Construction monitoring Performance Maintenance and repair Long-term ownership Investment JV with Funding of developers Attractive for developers: Take 100% equity requirements together with Norfund Bring all required debt financing Do full EPC, O&M and asset management
INTRODUCTION TO SCATEC SOLAR A strong position in emerging markets 1 A Established 2001 Main offices Norway A Oslo South Africa B Cape Town United States C San Francisco C 7 6 8 B 5 Market Cap Operational Power Plants Czech Republic 1 Kalkbult, RSA 2 Linde, RSA 3 Dreunberg, RSA 4 ASYV, Rwanda 5 ~ 400 MUSD 20 MW 75 MW 40 MW 75 MW 9 MW 430 MW in operation / under construction 310 MW in emerging markets 2 3 4 Plants under construction Jordan 6 Red Hills, Utah 7 Honduras 8 43 MW 100 MW 60 MW Page 4
The opportunity SSA is finally starting to add MWs Generation capacity in SSA Most Chinese projects are large hydro Power investment by source Thermal + renewable Source: Research by Anton Eberhard copyright: Scatec Solar Solutions GmbH www.scatecsolar.com info@scatecsolar.com 5
Solar power is a potential game changer for Africa Why solar power? Solar is cost competitive: Cheaper than new-build coal in South Africa Simpler and faster to build than any other source 9 months for 75 MW Kalkbut I d put my money on the sun and solar energy. What a source of power! I hope we don t have to wait until oil and coal run out before we tackle that. Thomas Edison, 1931 Scalable and flexible technology rooftop to largescale, grid to off-grid Clean and sustainable
Rwanda overview Significant reforms in the 2000s to enable private investment 52 / 185 in World Bank Doing Business report Corruption Index (Transparency International): 49/183 Net FDI inflows from 8 to 110 MUSD in 2000 to 2013 (~ 15x) Real GDP growth 8% 2001-2013 Poverty rate from 59% in 2001 to 45% in 2011 Energy facts when development was initiated Population of 11+ million Installed capacity: 110 MW 15% of population with grid access 40% of capacity is diesel Targeted capacity by June 2018: 563 MW Existing IPP framework + 1 prior energy deal negotiated
Project overview Developer Lead investor Location: 60 km outside Kigali, on Agahozo-Shalom Youth Village land Capacity: 8.5 MWp, increased grid capacity by 6% Annual generation: 15.5 GWh Technology: Polycrystalline modules (BYD from China) Single-axis trackers (Ideematec from Germany) SMA inverters from Germany PPA details: 25 years Total project cost: 23.7 MUSD Page 8
12 months from PPA to Interconnection July 2013 PPA Feb 2014 Financial Close July 2014 Interconnection Project development Financing Construction Operations Mar 2012: Partnership w / ASYV Apr 2012: EOI Jun 2012: First engineering visit Nov 2012: MOU with GoR Dec 2012: EIA, initial design and Grid Study completed <<<<<<<<<<<<< Jan 2013: Feasibility and EIA studies approved Feb - July 2013: PPA negotiations with EWSA July 2013: PPA signed Aug 2013: Start of DD Process with potential lenders Aug 2013: EPC tender Oct 2013: Active engagement with Norfund / Scatec Nov 2013: Scatec EPC offer; inprinciple agreement between parties Nov 2013: Mandating of FMO and EAIF as lenders Dec / Jan 2014: Final agreement between GWG, Scatec and Norfund 14 Feb 2014: Financial close Dec 2013 Feb 2014: Negotiations with sub-suppliers Feb 2014: Site mobilization Mar 2014: Site preparation completed Apr May 2014: Project slow down Jun Jul 2014: Installation of trackers, modules and electrical work 26 Jul 2014: Interconnection Aug 2014: Testing and Commissioning Sep 2014: Formal Operation Date Page 9
Summary of success factors Strong local partner GoR a strong customer: Tight timeline, but committed to avoiding delays and strong negotiators Strong legal representation Norton Rose Fulbright Existing IPP framework Permits in good order IFC performance standards From PPA to Financial Close, parallel negations but prioritization of speed Debt providers (FMO/EAIF) had already worked together Strong equity consortium (Scatec / Norfund) which had worked together and with track-record in Africa Integrated offering of Equity + EPC + O&M Taxes: Critical to get it right Grants for pre-development (OPIC / Power Africa and EEP) Page 10
Recommendations for future large-scale grid connected solar deployment Develop bankable framework Standard and bankable contractual documents Experienced local and international advisers Strong dialogue with lenders Carefully consider procurement approach Direct negotiations - critical to define criteria and evaluate value for money Feed-In-Tariffs hard to get the tariff right Tender programs more complex but most relevant to achieve scale Leverage international efforts like IFC «Scaling Solar» and Uganda «GET FIT» Create scale and predictability Long-term plan with clear targets Continuity in program vs one-off projects Other Land constraints need to be overcome Clear understanding of the grid required (e.g. grid issues South Africa) Grant funding in early stage development
Contacts Andrzej Golebiowski Vice President Business Development Country Manager South Africa andrzej.golebiowski@scatecsolar.com Mobile: + 27 79 606 0225 (ZA) / + 47 45 21 49 04 (NO) Chaim Motzen Managing Director and Co-Founder chaim.motzen@gigawattglobal.com cmotzen@gmail.com Mobile: + 972 52 352 90 87 Page 12