© copyright 2013, first solar, inc. first solar fuelsmart™: powering energy security dr raed...
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© Copyright 2013, First Solar, Inc.© Copyright 2013, First Solar, Inc.
First Solar FuelSmart™: Powering Energy Security
Dr Raed Bkayrat, VP Business Development, Saudi Arabia
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First Solar at a Glance
Driving innovation across entire value chain and plant solution
Strongest Financial Stability & Bankability in the industry
Facilitated approx. $9B USD worth of project financing
Over 8GW installed worldwide and over 3GW contracted pipeline
Founded in 1999 and publicly traded on Nasdaq (FSLR)
Cost competitive with conventional energy sources today
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site: San Luis Obispo, USA
size: 550MW
owners:MidAmerican Energy
Holdings Company
TOPAZ SOLAR FARM
Largest investment grade renewable bond in history
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The First Solar Advantage
PV energy solutions with superior value and less risk
=More Value
& Less Risk
=More Cost
& More Risk
Other PV Providers’ Model
First Solar’s Model
© Copyright 2013, First Solar, Inc.
Making the Case for Fuel Replacement
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Solar is Less Expensive than Diesel
• PV electricity prices have reduced over 50%
Sources: Diesel Pricing US Energy Information Administration; Solar Pricing: DOE, Lawrence Berkley National Laboratory
• Diesel prices remain highly volatile and have steadily increased
Small PV System Median Installed Price 2003–2012 WTI Crude Oil Prices 2003–2013
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Coal NuclearU.S. (NG) Japan (LNG)
U.S. (NG)
Gas Peaking EU (NG)
Japan (LNG) India
Diesel Australia EU
First Solar $0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Solar is Cost Competitive with Conventional Energy Sources Today
Sources: Coal and Nuclear: Bloomberg New Energy Finance LCOE Update: Q2 2013; Gas Combined Cycle, Gas Peaking, and Diesel: Lazard LCOE Sensitivity Analysis June 2013; First Solar: Internal data. (a) Does not include cost of carbon capture. (b) NG = natural gas. LNG = liquefied natural gas. Data assumes natural gas prices of $10 in Northern Europe and $18 in Japan (all in US$ per MMBTU). (c) Assumes diesel prices of $3.00 for India, $4.30 for Australia, and $7.00 for Northern Europe (all in US$ per gallon). Diesel assumes a high end capacity factor of 30% representing intermittent utilization and low end capacity factor of 95% representing base load utilization, O&M cost of $15 per KW/year, heat rate of 10,000 BTU/KWh and total capital costs of $500-$800 per KW of capacity.
a b b cGas Combined Cycle
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PV is Highly Compatible with High Ambient Temperatures • Thermal energy output decreases when PV energy output increases
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PV Hybrid Systems combine PV solar generation with a fossil fuel engine generator to reduce fuel consumption and save costs.
Solution: The PV Hybrid
Compatible with any thermal engine technology
Mid Speed EngineLow Speed Engine
Combustion Turbine High Speed Engine
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• Operate as a secondary power source
• Will not replace existing thermal infrastructure/fleet
• Are commercially viable due to operational fuel savings alone
First Solar FuelSmart™ Hybrid Systems
Think of solar as a source of fuel, not just additional capacity.
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First Solar FuelSmart™ Benefits
• Economic
• Operational
• Environmental
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First Solar FuelSmart™ Benefits
• Economic
• Operational
• Environmental
— Reduces fuel consumption—Saves fuel costs—Mitigates fuel price volatility risk
— PV is highly scalable and repeatable—Allows for phased implementation —Reduces technical and financial risk
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First Solar FuelSmart™ Benefits
• Economic
• Operational
• Environmental
— Reduces fuel consumption—Reduces imports and increases energy
independence—Reduces fuel transportation and logistics
— Reduces thermal plant operation time—Extends asset life—Increases redundancy—Reduces O&M
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First Solar FuelSmart™ Benefits
• Economic
• Operational
• Environmental
— Increases potential revenue via trading credits
— Reduces CO2 emissions and noise
— Contributes to positive community and PR potential
— Aids in overcoming regulatory boundaries for additional capacity for brownfield expansion
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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How It Works – Typical Day
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Key Takeaways
Solar is cheaper than diesel. With fixed pricing and no fuel-price volatility, solar represents a meaningful value proposition for anyone burning liquid fuel as their primary energy source.
Think of solar as a source of fuel, not just additional generation capacity. PV hybrid systems are designed to operate as a secondary power source to reduce fuel consumption and are not intended to replace the existing thermal infrastructure.
First Solar’s FuelSmart™ solutions effectively combine photovoltaic (PV) solar generation with a fossil fuel engine generator to reduce fuel consumption and save costs.