bizando - minieolico 60kw - november 2013
DESCRIPTION
NEW RELEASE - The project proposed by Bizando is characterized by a number of extremely positive factors: - Turnkey approach, by the acquisition of sites up to the plant in operation. - Very streamlined authorization process. - Rates of return on investment of high interest. - Ability to modulate the investment based on the needs of the investor. Bizando proposes a program development framework - focused in the southern regions of Italy - which includes: - Systematic search for suitable sites to be allocated to the installation of small wind turbines of 60KW. - Support for all administrative practices for the acquisition of sites and for obtaining all necessary approvals. - Design and construction of turnkey plants. - Management and operation of the plant for the entire period of its useful life.TRANSCRIPT
Small Wind Plants (Minieolico)
Opportunity for Investment in Italy
November 2013
Agenda § About Us
§ Introduction to minieolico (small wind plants)
§ The market
§ The regulatory framework
§ The financial aspects
§ The implementation aspects.
§ Our proposal
§ Findings
About us § Since 2010 Bizando has been active in the renewable energy sector by supporting the
production of energy from sources which use does not affect natural resources.
§ Bizando has actively participated in the development of large photovoltaic and wind projects in different Italian regions, including Basilicata, Campania, Lazio and Sardinia
§ Bizando operates through a network of commercial and technical partners by offering personalized and comprehensive services: § addressing the requirements of the projects § satisfying the objectives of "value for money" imposed by the client
§ Bizando is able to offer solutions "turnkey" in the field of renewable energy, with particular reference to the mini wind turbines and hybrid thermodynamic systems.
§ Bizando is also active in other areas, such as management consulting in telecommunications, the supply of mass SMS mode 'managed service' and the development of apps for all types of mobile devices
The origins of the minieolico (small wind plants) § Minieolico was born and developed primarily to meet the electricity requirements of isolated users (off-‐grid).
§ Today almost all of the installation is oriented to the generation and transfer of the generated energy into the grid.
§ The development is supported thanks to the specific incentive policies promoted by each country
Definitions § The definition of minieolico does not follow a single rule because it is tied to a logic based on the regulatory legislation that varies from country to country.
§ Regarding Italy, minieolico plants are considered those that have power in a range of 20Kw -‐ 200Kw and the generator can be placed both in horizontal than vertical way.
§ The lower limit coincides with the minimum investment threshold for structured finance operations.
Attractiveness of the industry § I’s appropriate to consider that the traditional minieolico and the traditional wind power
plants, have similar needs (even if the second ones belong to a field more developed and mature, beyond the evident scale factor)
§ However, the developmental potentialities of the minieolico are favored by some peculiar aspects that make more affordable this type of installation compared to those of large power plants: § Simplicity in implementation and reduced time of delivery and installation
§ Lower investment values § Reduced time for the authorization procedure.
§ Acceptable timeframe for connections. § Lower problems of saturation of the electrical capacity of the network. § Increased availability of suitable sites.
§ Perception of greater stability of the incentive scheme. § Better impact on public opinion and public administrations.
Global wind market § Globally, wind power is a mature and spread business with an installed capacity of 238GW in 2011
§ 0.4 GW are represented by the minieolico industry, distributed mainly among China, the United States, Canada, Great Britain
0 50000
100000 150000 200000
USA Cina UK Germania Canada Spagna
Polonia Giappone
Italia Svezia
Corea del Sud
179000 166000
42970 15000 12600
7020 7000 5900
5030 1700
1040
Cumulative Installed Capacity (KW)
Forecasts of development for the minieolico The forecasts of minieolico installed worldwide up to 2020 are excellent both on an annual basis (industry studies provide at least 30% / year) than on cumulated.
The development in Italy § In Italy, the installed capacity in 2011 was 14MW.
§ In 2012 it grew by 50% to a total of 21MW, with less than 400 installations
§ The installed capacity in 2020 is estimated to 1GW.
§ The presence of historical wind data in the localities where the great plants were installed facilitates the development of minielico especially in the southern regions.
Diffusion of minieolico in Italian municipalities
(*) Various sources, Legambiente, Politecnico di Milano
The authorization aspects § Regulatory compliance is one of the assessment criteria in financing transactions since a not completely outlined picture may cause situations of potential administrative litigation.
§ Article. 12 of Legislative Decree no. N. 387/2003 and national guidelines in DM 10/9/2010 state that single interventions depending on the installed power may be subject to Prior communication, Report of Home Activity (DIA) or Single Authorization (AU).
§ Wind power plants with a capacity of no more than 60KW can be made with the discipline of the DIA (today PAS, the simplified authorization procedure).
The incentives § The incentive mechanism of the Ministerial Decree
of 18/12/2008, which is valid for all systems that will be entered into operation before 31 December 2012 (with subsequent extension of four months in 2013), allows qualified plants IAFR, for size from 1 kW up to 200 kW, the ability to access at an "all-‐inclusive"fixed rate delivered by the Energy Services Operator (GSE), which provides for 15 years € 300 / MWh, provided that there is a total sale of energy produced.
§ The Implementing Decrees, the so-‐called Romani Decree published in July 2012, introduce a new pricing system for plants that will come into service after December 31, 2012 and after the transitional period of 4 months.
§ Specifically, there is a incentive tariff basis, for 20 years of useful life of the plants, amounting to 291 € / MWh for power up to 20 kW and 268 € / MWh for power between 20 and 200 kW.
Turnkey Project § We are able to offer an investment characterized by:
§ ”Turnkey” approach
§ Payment methods based on the phases of the development (progressive "development fee")
§ We performed a thorough scouting for lands and for turbines
§ For economic evaluations, our reference turbine was considered; at the same time we are open to consider alternative scenarios, with other turbines selected by us or chosen by the investor.
The turbine (60KW) § Truly innovative project based on a highly efficient generator with unique patent that allows you to minimize the size of the system in general: § Hub height: 25.33 mt.
§ Tower with hydraulic scrubber
§ Rotor diameter: 14.4 mt.
§ Chinese manufacturing with German (Siemens PLC) and Swedish / Japanese (SKF / NKS) components
§ Inverter Power One of the latest generation
§ Annual energy production: § 169MWh at 6.0 m / s
§ 211MWh at 6.5 m / s
Capex & Opex Capex:
§ Turnkey Plant Cost: 210K€ § Enel Connection: 5K€ § Land acquisition: 30K€
Total: ~245K€
Opex : § Maintenance § Insurance § General and administrative expenses
Total: ~2K€/year
Annual revenues*
§ Value of annual electricity production: 169MWh
§ Comprehensive rate as incentive system: € 262,64€/ MWh**
§ Value of annual electricity sales:
0,26264€ X 169MWh = 44,4K€
(*) Conservative assumptions, with average wind at 6m / s (**) Updated with 2014 values
Costs / Revenue Analysis x 20 years* § Capital employed: € 245K
§ Values ��of annual electricity sales: € 44.4 K
§ Annual operating costs: € 2K
§ Gross income: 42.4K€
§ ISTAT adjustment: 2%
§ PBP: 6 Years
§ TIR: ~ 15%
(*) Conservative assumptions, with average wind at 6m / s
BP (6m/s)
Years kWh / year GSE Revenues
Costs (Maintenance and Insurance)
Net Revenues
Cumulated flows
Costs / Revenue Analysis x 20 years (wind: 6.5 m/s) § Capital employed: € 245K
§ Values ��of annual electricity sales: € 55.4K
§ Annual operating costs: € 2K
§ Gross income: 53.4K€
§ ISTAT adjustment: 2%
§ PBP: 5 Years
§ TIR: ~ 19%
BP (6,5m/s)
Years kWh / year GSE Revenues
Costs (Maintenance and Insurance)
Net Revenues
Cumulated flows
Phases of work (indicative)
Site Autorization Project Construction Installation GSE
• Identification of the site • Letter of intent by the owners of the land • Site report & feasibility study • Business plan
• Technical documentation for the connection • Application on the portal "Manufacturers Enel" • Quotation for the connection to Enel
• Preparation of project documentation
• Realization of the plinth support. • Realization of the related works. • Delivery of the turbine to the port.
• Turbine installation at the site. • Testing • Documents of compliance.
• Administrative practice with the GSE. • Manual for operation and maintenance of the turbine.
Operations &
Maintenance
Project Development
Constitution of vehicle company
Production
The timing of completion (indicative)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Overall
Site
STMG
Project
Construction
Installation
GSE
about 180 days
20
35*
45
70
5
10
(*) Net of timing for contracting between Customer and Owner of the land
Our proposal § Bizando proposes a program development framework -‐ focused in the southern regions of Italy -‐ which includes:
§ Systematic search for suitable sites to be allocated to the installation of small wind turbines of 60KW.
§ Support for all administrative practices for the acquisition of sites and for obtaining all necessary approvals.
§ Design and construction of turnkey plants.
§ Management and operation of the plant for the entire period of its useful life.
Findings The project proposed by Bizando is characterized by a number of extremely positive factors:
§ Turnkey approach, by the acquisition of sites up to the plant in operation.
§ Very streamlined authorization process.
§ Rates of return on investment of high interest.
§ Ability to modulate the investment based on the needs of the investor.
Contacts [email protected]
This document is only a general overview of the subject treated in it. In no way is meant complete, especially without adequate technical explanation and necessary deepening.