Solar PV Rooftop Workshop – EU-GCC Clean Energy Technology NetworkDecember 2017

Solar Market Opportunities in Oman

Sustainable Energy. Anywherewww.enerwhere.com

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Enerwhere – Innovative solar technology with an award-winning business model

Thank you!

Enerwhere is a distributed solar utility – we provide electricity & cooling to commercial/industrial

customers

Enerwhere installs commercial-scale solar systems on an EPC basis &

is a certified contractor under DEWA’s Shams Dubai Initiative

Founded in 2012 in Dubai, ~50 employees in the Middle East & Africa

Ranked by Forbes Middle East as one the UAE’s 20 Most Promising Startups

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Agenda

Grid-connected (rooftop) solar

Off-grid solar-hybrid systems

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Solar market segments: “Solar rooftop” in the GCC means “medium to large commercial & industrial solar systems”

10 kW - 20 MW

• Low CAPEX• Highly variable soft cost• Financing can be

challenging

• Does not require investments in transmission

Commercial & Industrial (C&I)

Utility

>20 MW

• Low CAPEX• Low soft cost• Proven financing model

• Requires significant transmission/grid investment

Residential

3-10 kW

• High installation costs• Very low residential

tariffs in the GCC

• Not economically attractive for installers & the utility

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A quick scan of Oman on shows over 200 medium-to-large scale C&I solar opportunities worth 100’s of MWp

Notes:

Attractive C&I opportunities exist in many sectors, including:

o Industrial areas

o Shopping centres

o Oil & gas industry

o RAECO

o …

Total load & roof area is sufficient for several 100

MWp of solar

Source: Enerwhere research

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Installed costs vary dramatically across market segments, largely due to variations in “soft costs”

0,35 0,35 0,33

0,19 0,10 0,05

0,350,30

0,23

0,31

0,170,13

1,60

0,93

0,29

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41%

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$0

$1

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Residential C&I Utility

% ofTotal Costs

USD/Watt DC

2017 US Cost Breakdown by Market Segment

Module Inverter Hardware BOS

Soft Costs - Install Labor Soft Costs - Other Soft Costs

Source: NREL U.S. Solar Photovoltaic System Cost Benchmark: Q1 2017; ‘soft costs’ include permitting, customer acquisition & overhead expenses

$2.80

$1.85

$1.03

Notes:

• C&I installed costs are very competitive with those in the utility segment

• In the US specifically, poor regulations made C&I soft costs unnecessarily high

• If regulations are optimized to reduce soft costs, the Oman C&I segment can be as economically attractive as the utility segment

$0.92$0.84

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Optimal regulation balances risks between the involved parties and lowers costs across the value chain

Cost factors

Net metering + tax credits

DEWA Shams net-metering

Reverse auctions

Oman net-metering

Limited risk for clients ✓ ✓ ✓✓ ?

Limited risk for utility ✓ ✓✓ ✓ ?

Limited risk for investors ✓ ✗ ✓✓ ?

Low installed costs ✗ ✓ ✓✓ ?

Low soft costs ✗ ✓ ✓✓ ?

Low financing costs ✓ ✗ ✓✓ ?

Overall cost / kWh$0.09-0.12

$0.08-0.11

~$0.05 ?

Source: NREL U.S. Solar Photovoltaic System Cost Benchmark: Q1 2017; Press reports; Enerwhere analysis

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Agenda

Grid-connected (rooftop) solar

Off-grid solar-hybrid systems

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Diesel generators are a convenient but expensive & extremely dirty source of off-grid power

Credit: Caterpillar, Aggreko, Byrne, SES websites

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Solar-hybrid systems reduce fuel consumption, cost and emissions

SOLAR-DIESEL HYBRID

Load

6am 12pm 6pm 12am12am

SolarDiesel

Solar system produces power during the day

Diesel generator continuously provides grid stability and backup

Share of power supplied from solar: 30-50%

SOLAR-BATTERY HYBRID

6am 12pm 6pm 12am12am

SolarBattery

discharging

Load

Battery charging

Solar system produces power during the day and charges batteries

Batteries provide power at night; Diesel generator used only rarely

Share of power supplied from solar: up to 100%

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Hybrid plants combine the low cost of solar PV with the reliability of conventional diesel generators

Overview of solar-diesel hybrid system

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For a typical camp, a hybrid system can save 30-50% of diesel fuel / emissions, and offer 10-15% financial savings

Case Study: SSV labor camp, Sir Bani Yas island, Abu Dhabi

600 occupants Kitchen, Laundry, STP Operating 24/7/365

Solar-diesel hybrid plant:• 350 kWp solar• 2 MVA diesel generators (incl. backup)• Enerwhere hybrid manager

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In winter, most buildings can be run on >95% solar during the day, even without storage

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Solar output (kVA) Net DG load Load (kVA)

Load peak: 350 kVA (12:30)

Solar peak: 240 kVA (13:35)

Camps & Villages: Winter load curve

SSV camp, Sir Bani Yas island, Abu Dhabi, 15 February 2016

Daytime loads can be easily covered by

solar

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In summer, solar production and demand from air-conditioners peak nearly at the same time…

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kVA

Solar output (kVA) Net DG load (kVA) Load (kVA)

Solar peak: 263 kVA (13:35)

Load peak: 889 kVA (15:08)

Camps & Villages: Summer load curve

SSV camp, Sir Bani Yas island, Abu Dhabi, 22 July 2016

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…allowing solar + minimal amounts of storage to reduce the peak on the generators by around 33%

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kVA

Load (kVA) Solar output (kVA) Net DG load

Camps & Villages: Summer load curve

SSV camp, Sir Bani Yas island, Abu Dhabi, 22 July 2016

Total 33%peak reduction

from solar +short-term storage

DG peak (solar + storage): ~600 kVA

Load peak: 889 kVA (15:08)

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Benefits of solar-hybrid power plants over conventional diesel generators

CLEANER & CHEAPER

Diesel fuel & emission savings of up to 50%

ZERO CAPEX

Fully-financed equipment – no upfront investment from users

TRANSPORTABLE

Fully-containerized for rapid setup & deployment

MODULAR & SCALABLE

25 kW to multi-MW based on a simple “IKEA” principle

PLUG & PLAY

Preconfigured systems for extremely simple on-site installation

RELIABLE 24/7

Through hybridization diesel-generator or battery backup

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Contact

For more information, please contact:

Daniel ZywietzCEO, Enerwhere

daniel@enerwhere.com

Thank you!